Monday, January 31, 2011

10 Leasing Insights - Tip #5

Posted by: Dave Simonsen
Industrial Specialist
775 336 4667

Dave has more than 21 years experience as a commercial real estate broker. Dave exclusively works with industrial tenants, buyers, developers, landlords and land owners. He has represented companies such as AT&T, Barnes & Noble, Converse, DHL Worldwide, Delta Industries, Hawco Development, Lucent Technologies, IBM, Hopkins Distribution, Nextel, NEC, Sherwin-Williams Company, and UPS.

~10 Leasing Insights ~
Broker tips to better deals

Tip # 5
Personal Guarantees

When you start a small business, it often feels like it owns you. Your financial health and that of your business are initially one and the same. As the years pass and the business grows, it can eventually take on a financial life of its own. From the other perspective, landlords give legal control over an asset (often worth a million dollars or more) in return for a promise from you to pay rent. They want to know they will get paid from the entity or its owner. So when and how can you avoid Personally Guaranteeing your lease?

BROKER INSIGHT: If you’re a startup company, you likely won’t avoid a Personal Guarantee. What you can try to do is structure an out after a period of time to limit your personal exposure. If this is your second lease or you have some operating history, phasing out the personal guarantee over time becomes much more likely. An alternative to a Personal Guarantee, particularly when a new venture is well funded, is to offer a surety bond or a letter of credit guaranteeing the lease. This will tie up some of your operating capital, but is often preferable to a Personal Guarantee. Recognize that as with individuals, businesses build credit worthiness over time. If you have to give a Personal Guarantee on your first deal, work toward building the business credit to the point you won’t have to in the future.

Next Tip.... Option to Purchase

Thursday, January 20, 2011

Posted by: NAI Alliance Office Group
775 336 4600

NAI Alliance has moved!

Our new address is:
50 West Liberty Street
4th Floor West Tower
Reno, Nevada 89501

Our email, phone and fax numbers are the same.

Wednesday, January 5, 2011

Office Properties Group Sale Transaction for December 2010

Posted by: NAI Alliance Office Group
775 336 4600

The Office Properties Group welcomes:

  • CFCP, LLC who purchased 5.57 acres of river front land located in downtown Reno.

Office Properties Group Lease Transactions for December 2010

Posted by: NAI Alliance Office Group
775 336 4600

The Office Properties Group welcomes:
  • Nevada Mining Association - 201 West Liberty Street, Suite 300, Reno
  • MBA Reno-Randen L. Brown, Ltd., - 6151 Lakeside Drive, Reno
  • Enel Geothermal, LLC - 1755 East Plumb Lane, Suite 151, 153, 155, & 159, Reno
  • Contemporary Services Corporation - 2321 Pyramid Way, Suite B, Sparks
  • American Family Insurance - 294 East Moana Lane, Suite 700, Reno
  • Associated Mortgage Center, Inc. - 294 East Moana Lane, Suite 25, Reno