Master Lease Agreement for Commercial Real Estate

[@CommercialPropertyAdvisors]

Discover how to use this powerful tool to structure your own deals by applying to be my next protege: www.commercialpropertyadvisors.com/protege-program

[@c.mitchell1826]

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[@conduit242]

I started watching this video and was really confused. I didn't see him driving around in a Rolls Royce, or stepping into a helicopter to fly to Palm Springs. Instead, I saw someone competent and credible. Thanks for that.

[@jonathanfleming7981]

Rob Bird my same thoughts. very credible and real.

[@jypsyjennerousity1758]

lol That's Funny!

[@etaylor38]

Rob Bird LOL I agree.

[@erikig]

I'm pretty sure you have to do this from your garage and show us your Lambo...#confused

[@solino93]

Hahahahahaha! You're absolutely correct!

[@Jessicalewism]

your a great teacher, clear, concise and fully disclosed all info..

[@fineartonfire_5327]

He is indeed! Very well spoken and a great method of explanation. This info he’s giving away on YT is worth mega billions of dollars!!

[@curlytop07jd]

Hi Peter, great series! I've watched several videos this weekend. I even ordered your book. Thanks for providing the e-book for FREE! You've provided the mind shift I needed to move forward in real estate. I'm a creative person, I've never been exposed to alternative options to owning homes and property. I have the confidence now, I will own commercial real estate. I read through the comments and I saw several individuals ask for your master lease agreement, this was my same question. I can only assume you do not distribute it freely. I will do a search and use some resources to see if I can get my hands on one to get a greater understanding of how to begin to structure one. It truly does require a lot of knowledge about the property, loan, and owner to be able to present something favorable for both parties. I will continue to watch CPA videos. Thank you! This information gave me motivation! Good luck with starting your school for disadvantage youth. I wish, I received more information about finances, investing, and real estate growing up. Now, I must pay it forward.

[@TheBraunzone]

Sir, I think that this series is awesome! Thank you so much for sharing this information. I have been a student of the academics of business as both a technology entrepreneur and as a record producer. I have been to business school and I am a heavy reader . This is the most honest, direct and transformative presentation EVER . Thank you.

[@pedramnastaean4614]

Peter, you are a fantastic educator. Love the simplicity of your videos. Glad to have you as a resource.

[@floreznorberto4046]

I had no idea about the Empire State building. Fascinating!

[@Rebecca-sx5vg]

This is my favorite youtube channel. So helpful! I do wonder about the specifics of the master lease and how it all comes together. I would love to see a financial case study with purchase price, terms, monthly payment, down payment (if any) and ultimate outcome.

[@vongreenwade1958]

This is great information...Keep teaching and I will keep learning.....Thank you for your time and support for people that want to make a change in their life. I am a NOVICE just getting started. There is a saying "When the student is ready the teacher will appear. Thank you again...

[@rrdevries100]

I'm looking to move my business into a permanent location. Getting a bank loan won't be too hard since the mortgage payment will actually be less than what I'm paying in rent now. However, the Master Lease Agreement seems like a better idea since it won't have much impact on my cash flow. I can keep growing the business without wasting so much on a down payment. This video is a real eye opener! Thank you!

[@jasontran81]

Thank you for the clear and honest explanations. I have been looking to invest in multi-family property for a while. Your clips have been very helpful. Credible and knowledgeable! You're the man!

[@firstsergeantcandiobelleus6546]

I love this guy. Simple and clear. I want to join his mentorship team.

[@deanakjefferson9278]

Me too!

[@ZTZ330011]

Peter, awesome content, thank you. I'm looking forward to that video you mentioned in your padcast, how to manage the manager, especially for Apartments.

[@chasonjohn2052]

As a thank you for competent honest info I have bought your book.

[@cynthiadomenack7383]

This video is gold!!! Thank you so much!!!

[@windygorge1]

love your lessons. thanks for being part of the youtube learning experience!

[@Zenas521]

Wow, grate stuff! I thought it was going to be complicated, but you made it simple.

[@livingstone1974]

In 2022 getting knowledge from Peter. It only takes one deal to change your life!

[@Engineerboy100]

Thank you! This was very useful, I already knew some of this and have used it in residential real estate investments. Now I need to lear a little more to go commercial.

[@deborahanndocimo6890]

Thank you, Peter! You're a great Teacher!

[@warrenc.7906]

Hello Peter: Really enjoyed this PRESENTATION as I am now at the edge of getting into a deal for 20 UNITS. Your basic guidelines are what I need to temper my enthusiasm as I dream of 'what can be'. Perhaps I'll do the deal, perhaps not. What is important is that I realize how much I need to learn and that the 5+ buildings are different that owning a bunch of houses.

[@sykrosis]

Wow, 5 year update?

[@jinsukspears7484]

Hi Peter. You are true master piece. Thanks

[@moniqueconner6099]

Thank you Peter, I look forward to working with you and your team.

[@fourtune5711]

Your videos are amazing! I’m ready to get off the fence

[@ThomasNguyenbayarearealestates]

Hi Peter, Could you tell me how I can have a copy of your master lease? Or Are you able to assist me to instruct the master lease for a fee? Thank you!

[@cruzcommercialrealestate7977]

Great video. Detailed and accurate. Thank you.

[@ricardogreen2123]

I love this training Peter. Thank you. ❤❤🎉🎉🎉🎉

[@CommercialPropertyAdvisors]

Glad you enjoy it!

[@scottlweston]

Thank you for sharing this, Peter!!

[@PDerrickSeagraves]

Excellent information. I'm looking to purchase a self storage business and this is my ticket.

[@anthonypeltier4039]

alright? okay let's get started, okay. love it, subbed

[@jacquesmouton5994]

GREAT video!!!! Thanks for the brilliant education guys :)

[@jankelito]

This is such a great video thank you. You also mentioned where you can search properties that are in default or late on the property taxes. This is a good sign they will be willing to do a master lease. Another question wouldn't the seller want a down payment of any sort.? If so what amount would make sense?

[@CommercialPropertyAdvisors]

The lowest amount you can negotiate :)

[@orbeinhernandez9617]

Commercial Property Advisors How can I get your info Can you email me , [e-mail]

[@RandalColling]

I know two different people that did this here in Orange County CA. They did and do FANTASTIC, the only people crying are the original owner taking such small small payments.

[@terriorr8247]

Excellent advice. Thank you!

[@843properties9]

How do you make sure the Seller will actually take the money to pay down the mortgage's principal and interest? Thanks in advance!

[@TotallyRadCars]

Can a master lease be used for land? For example, i get a master lease on a retail pad site and then ground else it to a fast food restaurant. Would it be possible for the fast food franchisee to get construction financing to build his restaurant even thought the property is on a master lease?

[@CommercialPropertyAdvisors]

Absolutely.

[@rickprince9941]

Commercial Property Advisors Can I buy a copy of the master lease agreement? 925-580-8623

[@JorgeemilioAguirrecastro]

I'm learning a lot from you Thank you🎉😊

[@dgreen19731]

awesome info.do you guys have a master lease doc that can be used or tweaked for mass.

[@iamstaycoldent]

Dan Greenberger I would want that info as well

[@tarquanpearman3994]

one year later n no answer

[@MarkH10]

TARQUAN, LACREASE.......Google Your question, and the author's site is your first offering. I should think taking at least the basic step of a site visit or a search is common sense prior to asking. You have to do the smallest efforts yourself.

[@NierNierPasture]

Thanks for the great video. Very educational. But at 6:47, you said Joe created $800k equity and I don't get why that is the best part of the deal. That equity belonged to the seller, right? At the end of the lease period, when Joe would buy the property at the previously agreed price, the seller would pay off the balance on the mortgage and pocket the equity portion. Did I miss something?

[@DiamondCrushIvory]

Just subscribed, this is good...such a great teacher with lots of info for beginners🔥🔥🔥🔥🔥

[@patriot7633]

Hi Peter I liked your presentation and it is very informative.

[@stephenspataro5391]

Thank you for this great information

[@cullenjones7097]

Thank you for sharing your wealth of knowledge

[@art0fcrime]

Is a master lease agreement the same as subject to financing ?

[@CommercialPropertyAdvisors]

No. It's the same as a lease with the option to purchase.

[@keithwilliams5626]

I have a question, at lease a significant percentage of these properties are listed with a real estate agent, even though this is not technically a sale how are the broker commissions handled?

[@Alch8Fi153]

*Mindset Is Everything!* As the Chinese Philosopher, Confucius, said, *”He Who Says He CAN & He Who Says He CAN’T Are Both Right.”* Also love President Trump’s early 2000’s book, co-authored with Bill Zanker, *”Think BIG & Kick Ass In Business & Life”* 💪🏽 👑 🤝🏢 🏦

[@milintica02]

Great video, do you have recommendations on due diligence and determining the best length of an MLA?

[@Alch8Fi153]

Greetings Peter! Thanks much for this enlightenment! What next steps shall my partner and I execute to move forward on accessing your MLA doc, and receiving further instructions for meticulously curating and structuring our first deal? Thanks much!

[@dorothyduchatellier188]

Peter, you deserve the title of Professor Emeritus for KZbin University! this video is an eye opener for me! by the end of the video you referred to a book, but I could not catch the name of the author.

[@spiritual6193]

I do believe this is also what Larry Silverstein had with the WTC. A new lease was signed right before 9-11-2001.

[@haleymuthu3543]

spiritual619 whaaaat?! How intriguing.

[@AEAli-hs2un]

Good morning Mr Harris. Thank you for the information that you've presented. I know that it is relative to commercial properties but I have to ask-- is the master lease agreement concept transferable to home buying? I only ask because I am currently renting my house and I would like to finance it in a creative fashion. Many thanks -Ali

[@CommercialPropertyAdvisors]

Yes, it is. In residential, it is called at "Lease Purchase"

[@maggieeberle22]

Very interesting information

[@albbeta]

Very helpful thanks! where do I get a copy or sample of the master lease? who write it btw? if the business is not going well after the master lease period, can I say no to buy it? thanks

[@kevinmurray3051]

Great information. You mentioned getting investors prior to confirming the lease agreement. What upfront costs other than lawyer etc, would you need if you are simply signing a lease agreement. I understand you will need capital as you begin to acquire the property over the term of the lease but that comes later. Thanks for your help.

[@CommercialPropertyAdvisors]

+Kevin Murray Earnest money will probably be the biggest upfront cost. Followed by due diligence items such as an inspection, appraisal, environmental, survey, etc.

[@kevinmurray3051]

+Commercial Property Advisors Thank you Peter. Do you mind expanding on Earnest money? Is this a non-refundable deposit that would go toward the option purchase? Or is this a one time fee as part of the master lease agreement? Thanks in advance. Awesome videos!

[@markmathieu317]

Hi Peter great video I learned a lot , I currently own a building and some residential homes , Do you have a copy of a typical master lease so I can write one. Thanks

[@waz1167]

Thanks for the great video and information.

[@NJneering]

Thanks for the video. My question: What if after all the hard work and investment you've put on the property as the buyer, the seller decided to not to sell it to you at the fourth year (as per your example) after noticing that the equity is much higher now after all the hard work you have put into it?

[@CommercialPropertyAdvisors]

It's a legally binding agreement. You would sue for specific performance (and win and get your attorney fees)

[@NJneering]

Commercial Property Advisors thanks for the reply subscribed :)

[@schuylergoines1215]

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[@MRTransactionEngineer]

Thanks Pete! Can we buy the paperwork?

[@antoniobodley9350]

I hear the solutions but not specific details how to solve the sellers problems. HOW exactly are you going to fill vacancies? For someone new to this investing strategy with no money, how exactly will they take care of the rehab? Will that person have to do the rehab themselves or pay someone else to do rehab? If so, with what money? Just curious. I'm interested in doing this too.

[@darylrobinson8211]

Could you help with obtaining a master lease agreement template?

[@MarkH10]

daryl robinson Daryl, master lease agreement searched offers you their site with what you want.

[@RealEstateAholics]

Great info sir

[@jesussaves2856]

You mentioned hiring a good property manager is important. How do you find a good property manager in NYC?

[@ryanbeck7166]

Find and speak with other real estate investors on your area. Ask PM companies for references, and speak to their clients.

[@michaelhardyjr5230]

Great advice. I have a question. In a master lease option, would it be wise to make the payment directly to the mortgage lender, and give the seller their monthly payment separately?

[@CommercialPropertyAdvisors]

Absolutely. We always do it that way.

[@MrLonnieThomas]

@@CommercialPropertyAdvisors Peter, what’s the difference between the master lease agreement and wrap around mortgage?

[@yogicfly4bliss]

Great video!! Thanks Peter!

[@recordsgeek]

What protections does a Master Lease offer the buyer if they are making payments to the seller, but the seller is not actually making loan payments to the bank? Should the buyer send payments directly to the lender and then the balance (if any) to the seller.

[@stevenanderson3386]

What if seller dies or changes his mind when master lease ends?

[@jeanneb.9724]

How does the lease get paid while we're looking for tenants if we have little or no money to get rolling ?

[@ryanbeck7166]

You'd have to have reserves ahead of time, to cover the lease during vacancy. Or, you could try to negotiate into the lease agreement, a 30-60 day grace period for the first lease payment, while you find a tenant. Not sure if many sellers would go for it, but it can't hurt to try.

[@TheMonetteFamily]

Thanks for sharing this!

[@evelynsasaki7263]

Will it work with new development on property

[@dnasixenterprisellc84]

Are you able to refi the property after a time with the master lease. This will allow one too pay off the seller?

[@michaellawrence5990]

Awesome video! Just the information I was looking for and i plan on going to pick both books mention here. Do you have any tips on where to start looking for these types of properties?

[@myrealtv7830]

Will this work on NNN properties?

[@Hannibal730]

i like this guy.

[@jaygillard700]

GREAT VID

[@JanelleRizal]

Who pays for the improvements? I've been told you can structure it so that the seller uses their cash from the property to do the improvements you see fit

[@lincolnrhodes1548]

In your example with Joe, what happened at the end of the four-year agreement? The seller's mortgage was paid off. Does that mean the seller still owns it? I'm sure that can't be right, but I didn't follow that part. Can anybody explain?

[@EJARNY]

Are points 4 and 5 compatible with a progressive purchase over three years ?

[@NolaWarrior]

Helpful, thank you!

[@BReal-qj2vo]

How do you implement the Master Lease Option when the seller is using a real estate agent?

[@CommercialPropertyAdvisors]

Same way as normal but you will have to pay the agent upfront their commission.

[@barimaopong-owusu4831]

CAn you do a master lease on a free and clear property or does it make more sense to do seller financing 1st mortgage?

[@willmcneill4931]

Great video but curious how you make sure seller is making payments to the bank. If they stop making payments; wouldn’t we be at risk of losing the property to the bank (or whoever is in first lien position)? Thanks for the help. What other risks are there with this strategy? Sounds almost too good to be true!! Thanks.

[@sykrosis]

Any advice on methods of negotiating for a master lease agreement as opposed to an all cash/financed purchase?

[@CommercialPropertyAdvisors]

Watch this video: kzbin.info/www/bejne/iobLp5iphr1lfJY

[@shawnaza9896]

what if the seller default on the mortgage even thou he collected payment from the buyer?

[@CommercialPropertyAdvisors]

A smart Master Lessee has a 3rd party escrow company making the payment so that can't happen.

[@10ashagirl]

Wow excellent, just excellent

[@dmocksautosnstuff]

Commercial Property Advisors Hi I just found your video I hope it helps me with my situation my landlord want sell his property that I have bin renting for last 7 yrs I was always interested in this type of deal (master leasing) but he was once leasing multiple sections of the commercial property all the tenants left except me well now he wants out sence I’m the only one left and of course he’s tires of the up keep and the stuff is draining him out here where I need your assistance. Once get him to agree how do I get a contract and where do I go from there to make sure I’m gonna be locked inn and safe from him not pocketing the money or selling it beneath me and how can I make sure I’m safe with a contract

[@alexgreenbergmusic187]

Great! But you would miss out on cash out refinancing, but there are plenty of benefits with this too!

[@theroyale_experience]

Does lease option/MLO work on bank owned houses?

[@CommercialPropertyAdvisors]

No. Banks don't go for that.

[@miaham129]

Hi peter. Great video! Have a few questions on the MLA, how much interests apr 3-3.5% should I offer with the monthly payment and how many years on this agreement should i offer 10-15years? Thanks. Mia. .

[@CommercialPropertyAdvisors]

+Mia Ham Years depends on the seller, but it is usually restricted to the length of the underlying loan. If the loan is going to balloon in 3 years, then it would need to be for 3 years. As for the interest rate, that is deal specific and the lower the better!

[@monasaadi9015]

So where would I get the money to fix up the place?

[@everzamora9031]

Mona Saadi 203k Rehab Loans

[@bluewhalelam5248]

Great topic, Peter! I enjoy watching your videos. Do you know if a Master lease option can be used for acquiring commercial multi-family properties in Ontario, Canada? Thanks a lot!

[@CommercialPropertyAdvisors]

Yes, it most certainly can.

[@shantellneal6674]

Does that option come with the deal can the ower decide to not sell.

[@leland12345]

Do lenders allow these agreements?

[@brigetngampa8720]

Hello Peter, great video and thank you. How do you manage the Master Lease if the seller have other loans on the property that he is paying and he wants to get rid of them? Thank you.

[@CommercialPropertyAdvisors]

That's his own responsibility if they aren't recorded against the property. He can take his proceeds each month and pay his own bills.

[@Doddreal3429]

How could you get help writing a deal?

[@derekb4life]

Good morning, I heard you said that you take over the loan payment, do you mean you will make the loan payments directly to the bank?

[@CommercialPropertyAdvisors]

Yes

[@edwinwong2250]

Will the lender ever call the due on sale under a master lease option?

[@CommercialPropertyAdvisors]

+Edwin Wong They have every right to, but in all our years, we have yet to see it done.

[@Mrplace001]

So how do you ensure that the owner is making the mortgage payment, is it paid into an escrow of some type?

[@CommercialPropertyAdvisors]

You should be paying the mortgage directly in a Master Lease Agreement to ensure that happens.

[@wendyzhang6998]

Mrplace0

[@roncrandall]

Do I need to become a protégé in order to acquire a MLA template?

[@billturner1960]

Cannot Thank you enough Mr. Harris for these outstanding presentations. The hits just keep coming,,,, I've a quick question,,,what strategies are available to alleviate the seller/s in this type of arrangement from any potential liability issues with the property given that they hold legal title? I'm assuming on the buyer's side the protection of a properly structured legal entity but what if the seller and maybe perhaps his wife, jointly hold title in their names? Got to be a way to ensure a win-win for both buyer and seller/s. Thank you again sir. Bill Turner

[@CommercialPropertyAdvisors]

If they want to remove any liability issues, they need to transfer title to the Buyer, in an owner financing arrangement.

[@billturner1960]

@@CommercialPropertyAdvisors So then it's not a "Master Lease agreement",,,,,correct?

[@CommercialPropertyAdvisors]

Correct.@@billturner1960

[@rcruz401]

Can you do a master lease on residential properties?

[@metrosidearm4728]

I finished your free online course. Nice area, I’m familiar with it but they only provide one picture of the outside. I’m doing a viewing tomorrow…. Rafe Jamison Jr What questions do I ask. They only provide this info. They are all 1 bedrooms except two are studios. Not enough information to see if the numbers would work. Price per square foot: $135/sqft Annual tax amount: $15,160 Date on market: 5/30/2024 Listing agreement: Exclusive Right To Sell Listing terms: Cash,Conventional Ownership type: Private Owned Total actual rent: 12000 Road surface type: Paved 1,299,900 10 beds 12 baths 9,660 sqft

[@rendel3043]

Would you base a Master Lease payment off of the sellers previous mortgage payment, if the property is already owned outright ?

[@CommercialPropertyAdvisors]

If its owned outright, then you would do an owner financing deal, not a master lease deal.

[@yreva41]

What happens in the event that the investor/buyer can no longer make the lease payments from failing to stabilize the rents / property? Would the initial owner be able to take back the property / equity?