It’s time to REOPEN the economy

RBB said:
I just recieved a letter from a leese today wanting to know if I could help out
on Mays rent. They are requesting forgoing payment or what reduction in rent would be acceptable.
They believe they will encounter the current conditions for weeks, if not months. This company operates 142 conscience stores and 17 restaurants in 4 states.
Their obligation to my LLC ~$9500 per month. What would you do?
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I would do what you can. They won't be paying anyway and you if you proceed for eviction you'll probably just end up with an empty storefront. This is a time to work together so everyone benefits over the long haul.
 
Golfman25 said:
I would do what you can. They won't be paying anyway and you if you proceed for eviction you'll probably just end up with an empty storefront. This is a time to work together so everyone benefits over the long haul.
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They’ll be no eviction they have been a very good tenant.
 
RBB said:
I just recieved a letter from a leese today wanting to know if I could help out
on Mays rent. They are requesting forgoing payment or what reduction in rent would be acceptable.
They believe they will encounter the current conditions for weeks, if not months. This company operates 142 conscience stores and 17 restaurants in 4 states.
Their obligation to my LLC ~$9500 per month. What would you do?
Click to expand...
This is where you have to figure out if you are better off without the tenant .... if he can’t pay he won’t...could you rent it right now to someone else?....if you have a loan on the property you could ask for help with your payments... banks don’t want to take on property right now. You could ask tenant for a cash flow forecast.
 
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RBB said:
They’ll be no eviction they have been a very good tenant.
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Workout out a temporary reduction however not a "forgiveness". The net sum of the reduced amount would be due at a mutually agreed upon date. However, I would secure this concession with some form of consideration, ideally equity equal to the value plus the time value of money.
 
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RBB said:
I just recieved a letter from a leese today wanting to know if I could help out
on Mays rent. They are requesting forgoing payment or what reduction in rent would be acceptable.
They believe they will encounter the current conditions for weeks, if not months. This company operates 142 conscience stores and 17 restaurants in 4 states.
Their obligation to my LLC ~$9500 per month. What would you do?
Click to expand...

In my world we are seeing them asking for deferral. Typically two months rent, deferred and payable before the end of 2019. My advice - help everyone get through this crisis together and help ensure we all have cash flow. Maybe a 50% payment now, tacked on toward the end of 2020.
 
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Appreciate the responses.
I am thinking blend and extend. Lease expires Nov next year. Reduce the payment near term and extend term.
Possibly forgo May’s rent all together.
It’s a triple net lease (upkeep, taxes, etc paid) so I have zero cost
That comes out of payment except a umbrella policy.
 
CaptRonn said:
Unintended consequences

https://www.freep.com/story/news/lo...t-layoffs-mclaren-macomb-hospital/2985623001/

https://www.detroitnews.com/story/n...-quarter-loss-covid-19-takes-toll/2986606001/
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My wife has worked at three of those hospitals mentioned in the articles. She has friends at many of them still. She currently works at Henry Ford Macomb in the anesthesia dept. For three weeks straight it was 20-30 hours of OT (almost mandatory..). Covid cases were continuous, including at other hospitals. Early last week the hospitals started seeing declines in Covid cases. This week there's no OT anymore and now they're talking layoffs. Huge fall off of cases. They're starting elective surgeries again but it may be too late to stop the massive layoffs. Shit is about to get real if the hospitals start laying off in mass numbers or worse close.
 
CaptRonn said:
During WW2 businesses weren't shut down arbitrarily. And the businesses that were affected retooled to build war supplies. Jobs were available for anyone who wanted to work. There was food and fuel rationing, but our country also had a huge small farm industry.

This pandemic is not WW2, so not a good comparison.



Well, duh, yes I worry about money, so do many. In case you missed it, people have mortgages, car payments and families to support. Now that many have been forced into unemployment their futures aren't so bright. Perhaps you are in a situation where your income is secure, but for many this is not the situation.

Many small businesses are in the process of, or have been destroyed. The owners have spent years building it up only to see it vanish overnight.



The crash of 2008 didn't put millions unemployed virtually overnight. It also didn't put vibrant businesses shuttered, not due to financial but due to being deemed "non essential". And after the crash when businesses did fold several new businesses sprang up. Money was still flowing in the economy because people could still buy goods and services.



Yes, we went through a phase where malls left and right were losing businesses, however this was not created by the economy but by the schemes in which all these malls sprang up (another subject). And those displaced from the mall jobs could find other work.



Right now the economy is on edge. How much more borrowed money is the government suppose to put out to try to keep everything afloat? Do you even think about the supply chain?

Right now farmers are having problems getting products to market. Milk is being destroyed at the farms, and several meat packing plants have closed. Eventually the trickle down is the supply chain to the grocer warehouses will dwindle, and then we start seeing real shortages.

Now look at the financial markets. Once a domino effect starts with home mortgages and commercial mortgage meltdown, look at other markets to be hit hard.

My parents grew up in the depression. While times were hard, they lived on farms and were self sufficient. Today most of those type farms are gone, and with the newer generations never had to live through something like that, just think of the chaos this will create. Many today have no idea of where food comes from, all they know is the grocery store or restaurants. Think of what happens when the food supply diminishes even 20%, and people don't have the money to buy what is in the stores.

If this country is allowed to slip into a depression, it will make 1929 look like a high school prank. I realize many who ares still financially secure sit back and say "no big deal, just keep it all closed", but that frankly is looking through rose colored glasses.
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A lot of what you posted I don't agree with WWII was the worse economical disaster to hit the world. Europe was leveled there was no daily business and importing if goods. Food was rationed here as was gasoline. Tires were very hard to come by, the war effort was draining resources at an incredible rate. Men went off to war and woman started working. The loss of life from WWII has not been match by any pandemic.
The crash of 2008 was devastating to the country and most of the world. It lasted about 5 years. Unemployment was high and short sales and foreclosures were the worse in history. I bought 2 homes in Florida in 2011 for 30 cents on the dollar and they paid all the closing costs. It is possible that we could see that maybe but it's only been a few months not years.
A pork processing plant in South Dakota closed two days ago they had 300 employees test positive for Covid-19 that put 3,700 people at the plant out of work and over 500 farmers with no source to buy their products. It's a shame that an essential service like this is gone but it shows how dangerous this virus is and how we need to be careful and not open to soon.
 
Iprof said:
A lot of what you posted I don't agree with WWII was the worse economical disaster to hit the world. Europe was leveled there was no daily business and importing if goods. Food was rationed here as was gasoline. Tires were very hard to come by, the war effort was draining resources at an incredible rate. Men went off to war and woman started working. The loss of life from WWII has not been match by any pandemic.
The crash of 2008 was devastating to the country and most of the world. It lasted about 5 years. Unemployment was high and short sales and foreclosures were the worse in history. I bought 2 homes in Florida in 2011 for 30 cents on the dollar and they paid all the closing costs. It is possible that we could see that maybe but it's only been a few months not years.
A pork processing plant in South Dakota closed two days ago they had 300 employees test positive for Covid-19 that put 3,700 people at the plant out of work and over 500 farmers with no source to buy their products. It's a shame that an essential service like this is gone but it shows how dangerous this virus is and how we need to be careful and not open to soon.
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So if you find a brown recluse spider in your house, do you burn down the house to get rid of the spider?

Brown Recluses are dangerous, and on occasion can kill people, or even make them very sick. So if you know the spiders are in the house................
 
You know, we are working. We just have no one to work for. Homeowners are hurting, businesses are closed.

I've power washed a few homes just to get the HOA's off the owners backs. Mostly for free, I've done two boats bottoms in trade for my bottom paint...trade is better than nothing
 
After thinking about I am going with a 50% reduction in payment for May.
After that I will propose reductions based on a extension of the lease for not less than 7 years. They already have 5 yr options in the lease.
They have been my tenant for 14 yrs.
I have had other c-store operators try to purchase the property even with it leased out already. Not really interested in selling it.
 
if you have ever had a serious injury like a broken hip your doctor can fix it and lets you know how to make it better. Your brother in law the mechanic may tell you how to make it better. Who do you trust.
 
northern said:
if you have ever had a serious injury like a broken hip your doctor can fix it and lets you know how to make it better. Your brother in law the mechanic may tell you how to make it better. Who do you trust.
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Depends on the doctor.
 
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