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Commercial Property For Sale In Louisiana-Lease Agreements

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Home Page > Finance > Real Estate > Commercial Property For Sale In Louisiana-Lease Agreements

Commercial Property For Sale In Louisiana-Lease Agreements

Posted: Sep 05, 2010 |Comments: 0
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I will present one option and give you some details on how to accomplish some special financing for your new commercial property. In today’s unfriendly lending environment especially for commercial lending one good option is owner financing. If you have exhausted all your financing options with commercial banks and lending institutions you can try asking the owner to do what’s called owner finance and do a commercial lease or maybe even a lease purchase to accomplish two things, you get your property and the seller makes his sale and gets a good rate of return on the interest rate.

When you are in contract negotiations you can ask for and in today’s market many times get owner financing of many types of properties but sometimes with commercial properties it might be the owners’ only option to get his property sold. This is the most unfriendly lending market and environment there has been in at least the last 25-30 years making it very difficult to sale recreational land and even worse commercial property. When you have secured your owner financing some things to keep in mind are the terms of a lease agreement.

I will mention all the specific terms you need to keep in mind but to keep this article from going to long I will only go into detail on the more important issues you will want to key on. This is a list of the terms, term and rent, use, care and maintenance, alterations, ordinances and status, assignment and subletting, entry and inspection, possession, indemnification of lessor, eminent domain, destruction of premises, lessor’s remedies on default, security deposit, tax increase, common area expenses, notices, heirs assigns successors, option to purchase, and subordination.

I will now walk you through the most important of these terms. If you are the seller let me take you through one you better pay close attention to, option to purchase. Before you do an option to purchase with anyone you better pay what ever it takes to do a thorough back ground search on your buyer and I mean all the way to birth. One thing to keep in mind once you do a lease with option to purchase and your new tenant moves in if he does not perform it is a legal nightmare to get rid of them without much of an attorney they could cost you a year to remove them from your property I have seen it take this long. If you have a tenant make sure to put the burden of insurance on them this is one more tool you can use if you need to evict them.

This is just an outline of terms you will need to use in a commercial lease if you are looking for commercial property for sale in Louisiana but very important ones I will assure you. Commercial property, a commercial lease and owner financing of commercial property for sale is a more common occurrence today than in years past.

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Chuck Magee –
About the Author:

Chuck Magee has been in the real estate business for two decades and has launched land for sale websites like http://www.alabamalandsource.com, http://louisianalandsource.com, and http://mississippi-landsource.com.

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Do lease agreements have to be notarized?
A business purchase agreement had a clause that required us to assume a lease. We found out that the co is not going to be able to renew the lease so the agreement is now void. Can they do that?
I have a 99yr lease on a commercial warehouse that the city is putting up for tax lien auction What happens to my lease.? does the tax lien holder have to assume that lease? Even if foreclosed later

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Article Tags:
commercial property for sale in louisisna, land, first south farm credit, financing

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