IP destroyed by tenants

[Spades]

Nah, both investments, both distressed.

Wrong answer,the OP is selling an IP,the other is not paying rent.

Btw turk,do you have a vested interest in frangers?Or you baiting?

Anyhow just for your entertainment,warning do not watch this if you have Epilepsy or susceptible to fits.

Hatred & Fuzz - The Art Of Baiting 2

https://www.youtube.com/watch?v=DtHLJIcivOM

Again,good day sir

 

[turk]

Wrong answer,the OP is selling an IP,the other is not paying rent.

Btw turk,do you have a vested interest in frangers?Or you baiting?

Anyhow just for your entertainment,warning do not watch this if you have Epilepsy or susceptible to fits.

Hatred & Fuzz - The Art Of Baiting 2

https://www.youtube.com/watch?v=DtHLJIcivOM

Again,good day sir

Olive is selling Frangers IP as she can no longer afford it.

Stock will be sold as owner can no longer afford it.

No interest in Frankston, do you?

Also wishing yourself a good day

 

[Spades]

Olive is selling Frangers IP as she can no longer afford it.

Your slightly right,read the thread again,ie:Olive can't afford to hold out for another 7yrs for CG's etc

Stock will be sold as owner can no longer afford it.

Let me know when you have the facts from Delta

No interest in Frankston, do you?

Funny man,your kidding right?Pay me and i'll have a look

Also wishing yourself a good day

You too mate

 

[dex]

My commercial has been vacant for a while- with a solid lease in place.

I'm owed about $12k. The tenant would love me to lock her out. The lease would cease. As it is she still has a legal obligation to pay.

Why don't you do what Deltaberry did, lock her out and take her stock so she'll pay the outstanding rent?

 

[Spades]

Why don't you do what Deltaberry did, lock her out and take her stock so she'll pay the outstanding rent?

I agree dex,it simply doesn't compute with me.Like flogging a dead horse!

 

[geoffw]

Why don't you do what Deltaberry did, lock her out and take her stock so she'll pay the outstanding rent?

It's a takeaway shop. Any stock worth having she would have taken already. She's no longer trading there. Fittings are not good quality. She would love for us to lock her out and release her from the obligation. In the meantime we're looking for a tenant. There's a potential buyer in the wings.

 

[Spades]

Geoffw,if your not getting rent,what's the point of keeping the free loader in there?Stock or no stock...Seriously!

 

[MTR]

That is why I don't buy residential anymore. Commercial, higher yield, tenant pays everything including council rates and insurance and water, six month bond and has a legal obligation to restore the premises when they vacate. Few months ago had a tenant did not pay 3 weeks, he came in next morning to find his shop chained up overnight, legally, no need for VCAT or good for nothing arbitrators. I had all my rent in cash that afternoon.

I hear you...... with CIP tenant pays all outgoings, higher rental returns etc. however, still has its own associated risks, why did your tenant/business owner pay rent late? if that business goes belly up then what? got personal guarantees, that's only any good if they actually have money/assets.
I know an investor who got caught with this one, business owner/tenant did not pay rent, had personal guarantees in place but tenant had no money.

 

[Spades]

Red flag?Signs of the economy and more to come.

 

[Scott No Mates]

If you have any form of performance guarantee, enforce it. Serve the notice to lock them out, lock them out, cash any bank guarantee. Serve notice for debt recovery and get a judgement against them. Then go for bankruptcy.

If you don't take appropriate action to minimise/mitigate your losses you may be jeopardising your financial position.

Contact your insurer to ensure that you are still covered (tenant has probably ceased paying for insurance).

 

[geoffw]

Geoffw,if your not getting rent,what's the point of keeping the free loader in there?Stock or no stock...Seriously!

I have a legal right to the rent. The tenant has a guarantor. Both the tenant and the guarantor know this. They have other businesses and/or property. I'm getting legal advice- perhaps a caveat would be possible.

The alternative is no rent and no prospects.

 

[Spades]

Good luck geoffw...i hope it all pans out well

 

[Scott No Mates]

I'm getting legal advice- perhaps a caveat would be possible.

Use a specialist retail leases solicitor not your run of the mill property lawyer. They have a great understanding of the retail leases act and how to apply it.

 

[Deltaberry]

Ha ha...I'd be interested no what stock is in there if he doesn't pay the rent.

I'd be up for a fire sale

Oh just groceries and the like. It's a famous supermarket type brand, he's a franchisee.

Told agent today he wants to renegotiate lease. I said I'll negotiate when I get my rent or I'll get it from the 6 month bond anyway.

 

[Deltaberry]

I hear you...... with CIP tenant pays all outgoings, higher rental returns etc. however, still has its own associated risks, why did your tenant/business owner pay rent late? if that business goes belly up then what? got personal guarantees, that's only any good if they actually have money/assets.
I know an investor who got caught with this one, business owner/tenant did not pay rent, had personal guarantees in place but tenant had no money.

That's right. CIP has its risk. The only way to minimise it in retail is:

~ good locations, so lots of rental demand;
~ you have the ability to step in and operate;
~ flexibility so you can do many things there (probably a product of good location);
~ buy at good prices (duh);
~ take a 6 month bond

Even then you can get caught out, eg Chapel St or Bridge Rd. Then again I don't consider those good locations.

Of course other people play different things (eg Drapac plays offices, Dazz our WA Lib candidate plays industrial). Each category of IP has its own risks but generally residential is worse, except for the fact you can gear most and debt is cheapest.

 

[Scott No Mates]

Deltaberry, is there any recourse to the franchisor? Can the franchisor take over the lease?

 

[Spades]

Oh just groceries and the like. It's a famous supermarket type brand, he's a franchisee.

OK.if all fails and you need to clear the stock...i know a shop currently going an upgrade,i shop there,don't know them personally though,just a meet and greet....Nothing in it for me.

Deltaberry, is there any recourse to the franchisor? Can the franchisor take over the lease?

Good ?

 

[Deltaberry]

@ Scott: Haven't checked in detail, but I doubt there's recourse to the corproate gorup

@ Spades: No worries. If not you can come over and eat some free nachos

 

[The_Bludger]

Hi xyz123, that is terrible! Which suburb was the house?