Jan
09
opening a new bussiness and have a question about commercial lease?
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My Mother and I are opening a new retail shop,and the bussiness has no credit(oblivously),Do we put the lease in my mothers name?
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I am considering opening a coin laudrymat. I am currently looking for retail space to lease? Does anyone have any good insight to how much is really involved with getting this thing up and running? Any advise on things to look for and things to avoid? Is it better to purchase or lease the equipement? Thanks for any help!Quick Property Sale ...
Credit background check and banking check for commercial retail store lease? I m applying for a new retail store space, they require credit check. What will be their primary search target? Will they check to see how much I have in the bank? What kind of credit score consider qualfied? above 700?Rent Back Fast ...
Is a commercial lease much more expensive than a residential lease if they are in the same area? Also, how likely is the owner of commerical property going to be willing to let one retailer share his space (possibly sublease) with another retailer for part of the year? I would like to open a retail store, but only want to have it open a few months out...
Leasing retail property question? I am looking into starting my business, and I have a question. I’m sure it probably is different from place to place, but when a rental property says this… “Rental Rate: $10 /SF/Year” I get that it is $10,00 a square foot, BUT it says “year”, does that mean...
I have bad credit and am trying 2 get a lease 2 retail loan for my car.Any help as 2 how. My leasing company? GMAC has already said they would not do the lease to retail loan because i’ve messed up my credit since i received the lease in 2006. I’ve never had credit problems before so i have no clue where to begin. I am a member of a credit union also…do...
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2 Comments
February 14th, 2010 at 3:14 pm
Generally speaking, you should put the lease in the name of your business. Since your business has no credit history, the landlord will want a personal guarantee from at least one person who has the financial resources to pay off the obligation in the event of default. Depending on the amount of the total value of the lease, the landlord may in fact want more than 1 personal guarantee. In other words, if your lease is a 2-year lease at $2000 a month, that’s a total of $48,000 over the term of the lease. If the landlord doesn’t feel comfortable that your mom could pay off that amount, they may want a 2nd guarantor. It would be wise for you to negotiate the shortest lease term you can get the landlord to agree to, for the obvious reason that if things do not work out with the business (I hope this is not the case, but statistically it’s possible), then your mom will be obligated for a much lower amount. Or if the opposite is true, after your first year in business you may find that you need a bigger space, and having only a 1-year obligation would allow you to move to a bigger space without worrying about breaking your lease.
February 16th, 2010 at 11:58 pm
I actually can’t improve on Linda’s answer. Follow her advise.