Unlocking the Power of Digital Signature Licitness for Letter of Intent in the United States

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How to eSign a document: digital signature licitness for Letter of Intent in United States

okay good morning everybody uh welcome to the freddie training and uh you're going to have a treat today because we have uh our ceo the shiny cam chiming in as well and michelle is going to touch on the loi which is very important element in the commercial real estate so uh hope you have a good time so um michelle ticket uh thank you welcome everybody this is a great training session today we are going to be covering um commercial lease lois on a modified gross or it could be a triple net those are the most common around here so since there's so much in the commercial arena to cover we'll keep it on the commercial lease agreement uh commercial loi for today leasing okay so this is just a draft of the letter of the loi so it you usually put it on letterhead we do have some letterhead that you can put on your computers that has the commercial logos for coldwell banker george realty you know you dated address it to the landlord tell them what this is and usually you're going to let the landlord know a little bit in your first paragraph about your client so in this case this is just a made-up loi that shumay and i put together it's chef sam smith of xyz eatery he's an experienced operator uh for restaurants and he has a 20-year career now what you're going to do with this loi is also attach a brief resume or synopsis um of your client so it's uh you know stronger for you stronger for you when you're presenting so now you go right into the terms so one thing i want to say about lois is these are non-binding you'll see the paragraph at the back so um you know try to make it as good as you can but don't be afraid if you've missed something just re-read it and you can correct that because this is a non-binding it's a way to kick off the negotiations so the terms offered you're always going to state the site address and if there was a suite number you would put it here as well you want to let them know about the business use so this in in this case it's a restaurant and the name of the business sometimes it could be a tbd because they may not um have established the name of the restaurant yet or in this case we have xyz eatery so type of lease we are on a modified gross lease so what does that mean uh the tenant pays a base rent plus a portion of the operating costs um you'll see cam fee which is common area maintenance fee so those will be laid into this loi later on the second page and you'll see that so the tenant pays base rent plus a portion of the operating costs the landlord pays another portion other portions of the operating costs bear in mind that modified um gross lease agreements can vary and the division of the obligations is who's paying what vary from lease to lease so make sure that you are checking that out and understand that but on an loi uh we're just stating the initial terms that the tenant is seeking so the term of this lease that the chef would like is five years and he would like one five year option to renew always put the commencement date so in this case he wants to commence july 1 2022 so you always put the approximate square foot of the unit because it's not going to always you know be exact but it's approximately 1200 square feet put your base rental rate that you're offering your base rental rate we're offering here is three dollars per square foot uh 3 600 per month and you always want to put both because in a lot of the commercial arena they're looking at a cost per square foot so we like to put both the three dollars and then what that totals the cam fee your common area maintenance fee is 50 cents per square foot or 600 a month so your total monthly rent on this unit is 4 200 a month now we've came in tried to be strong on this and we're offering a security deposit of 8 400 which is the equivalent to the base rent cam fee times two so normally you want to come in i've seen people coming in with one month a lot of times even if the client and shoemake's gonna address all the questions at the end even if the client has really good credit the landlord would like two months you know uh cushion here so if you want to come out strong it's good to come in uh at two times so your rental increase you do want to address this um because it could be cpi or four percent annually and we structured this whichever is less because as you know um it's somewhere hovering probably i haven't looked it up today but it could be seven to eight percent so what is the cpi it's the consumer price index and many leases will refer to a rental increase in cpi and that's how they make the adjustment so when the cpi is high which it is right now you want to try to cap that so you want to cap that for your client if you're representing the tenant so make sure that it's cpi or whatever cap you're going to put here annually and and state in it whichever is less okay because you don't want your client getting an eight percent increase because they just want straight cpi if they weren't prepared that is a fluctuating annual rate so i say eight percent this year it could be you know six percent next year and if it goes really low it could be five percent or less but just make sure you're capping that rental increase don't leave that wide open for your client okay so rental abatement now why would this be in here because most landlords are going to give some free rent or rental abatement so that the client can prepare the unit so you never want to give them free rent or rental abatement in the first month and the reason why is when we collect the money on this lease we want that first month in we want to get that in the landlord's pocket so we never offer the first month is free let's say they started excuse me mid-month like we have one that will be starting uh june 15th for instance so i'm what we have structured in our lease not our loi but our lease is we're taking that whole six months worth of rental payment and then the the next month's up will be their free month so we always you take if there's 10 days left in a month where they started mid-month make sure you take those days plus an entire next month you need to get that money into the landlord's pocket okay so tenant improvements these can vastly vastly vary um so in this case this tenant because it's a restaurant he's got to do some improvements um generally and she may will be answering all the questions at the end but what i've learned from her and i probably only have the equivalent there's so much to learn of an aa degree you know i still need to keep continue learning every day but on tenant improvements a lot of times the landlord if they like the client they may you know let them do some improvements that include flooring and and additional stuff like that but a lot of times they're looking for things that enhance the unit that the landlord can later use so what could that be that could be a new tonnage air conditioner things of that nature maybe they're going to put in some counter space things like that and i'm going to let shumay address the tenant improvement because each case is different and when you're writing the loi um you need to have a conversation with your client and understand what they want to do to that unit sometimes it's a blank space other times you know you have a fully built kitchen or something like that or you can be renting a space that has a lot of offices that are pre-built from another tenant the new tenant doesn't want those so they're going to want that demise so you have to have some tenant improvement money and um depending on the landlord's decision they're gonna either go with that rate or tell you what rate they're comfortable with so when you are writing these for tenant improvement for your client uh make sure that you are uh cueing the landlord in that you your tenant is aware that they're going to be uh making the improvements with a licensed contractor that contractor needs to come in with their certificate of liability insurance and they also need to come in with a copy of their contractor license prior to commencing work these improvement plans the tenant will normally submit them to the landlord before they break ground on any of the improvements so that the landlord understands and can look it over so your client should not just be starting work unless it was simply painting a wall then it's it's probably fine but if they're breaking you know walls or anything like that make sure that you're advising your client to get that approved by the landlord to show them the plan first make sure your contractors on board with his liability his or her liability insurance and their license so when you're delivering the premise to the client generally the landlord will warrant that the roof electrical hvac hot water heater if applicable are in good working condition now another thing that we that shumay and i have ran into so we're very careful now to add it to every loi is we want that landlord warranting that that bathroom is ada compliant now why is that because if they're uh you know ripping into a unit the city is going to come inspect and if that bathroom is not ada compliant already that could be a small bathroom i think i heard an estimate of eight to ten thousand it's not cheap so if you are representing uh your client make sure that you're throwing this in that the bathroom is ada compliant you don't want any surprises for your client that it's not and then the city tells them to make it ada compliant so normally uh the landlord is going to warranty the hvac unit for a certain amount of times this one's pretty generous i just threw in three years it could be one year it could be two years from the date of commencement of lease so that means that after three years then um you know the tenant needs to take care of that air conditioner so it's a good thing to find out from the listing agent how old is the ac what is the tonnage on it make sure that's going to work for your client excuse me and you always want to add in the unit is delivered and it's as is where is uh condition okay so you're delivering it that way now there's for for commercial there's always signage so you always want to throw in the clause about signage and why is that because the landlord wants to look at your signage maybe they don't want pink neon flashing signs on their you know in their nice uh mall so make sure that you are thoughtful in in the design and that your client understands that it's going to at a minimum require landlords approval and most landlords are okay with the signage there you know unless like i said it's something really outrageous and sometimes where applicable it could take the city's approval as well so the tenant needs to observe the signed policies and rules of the landlord and city if that's applicable you always want to make sure that the tenant understands that signs and installation are their sole responsibility and expense the landlord is not participating in that cost unless that was something the landlord wanted to do and was open to that so things are negotiable but in most cases she may will dire address this at the end with all of your questions it is uh the tenant taking uh exp responsibility for that expense now another thing that is very important is you want to make sure that they understand that the parking because most of these units are going to be uh you know in where there's a large parking lot so you need to make sure that you are letting um the client know and this is also the loi to the landlord that they understand that the parking is offered on a first-come first-served basis now there are times where there may be some reserved parking i know shumay's working on one where she is putting trying to get put in 15-minute parking so that the people can come and pick up food in those two 15-minute slots so if that were the case you would simply add um however um landlord will uh you know supply tenant with two 15-minute parking spots for food delivery and pickup okay so make sure that your you're structuring the parking clause in this letter of intent the way it is utilities make sure that you're also uh covering utilities um and this one i probably a tenant is responsible for utilities one thing that i would add here um and i'm just thinking about it and she may can correct me at the end if she thinks something different check on the water because sometimes the restaurant um business or beauty salons or nail salons they may be using more water so uh where the landlord may have been supplying water to other units that don't quite use as much water they may want to put a separate meter for water on the unit where they feel like the water usage is going to be too high a lot of times the landlord will simply um state that you can go up to a certain amount of water usage if you go over that and that'll be in the least then you're going to need to pay so make sure that they understand that if they want a landline an internet service that is their responsibility to get that provided so the most important thing is not the most important but pretty important to collect that money so when you have the lease prepared once the the letter of intent will go out to the landlord maybe the landlord doesn't like some of the turns so they're going to in turn counter they're going to send a counter letter of intent which is all non-binding they're going to send it back to you you're going to present it to the client you may make two or three rounds on these counters hopefully it's only a couple of rounds but it could be two or three rounds to get it so that the most important information is agreed upon as you know commercial lease documents can be lengthy so you're just addressing the most pertinent things that that uh to agree agree upon so upon lease execution you're going to draft that lease the landlord's going to get a copy of that drafted lease whether you're using a or air and you're also going to send the tenant that drafted lease so they can review it so tenants shall provide a cashier's check made payable to whatever your landlord's name miss landlord as itemized below so you see here i'm asking upfront in this loi or i'm letting the landlord know that we will be providing the first month's rent security deposit of 8400 and the total amount of a cashier's check nothing but a cashier's check make sure we're getting cash for the landlord is going to be 12 600. so prepare your clients when they come to once the draft has been reviewed and landlord and tenant are in agreement make sure they know to come prepared with that cashier's check for you so tenant insurance um the tenant this is really important and each landlord may have their own requirement but you always want to let the landlord know that you're prepared to provide the landlord with a certificate of insurance um in this case we put a million dollars per current currency and also in that certificate of insurance we want to name the landlord as an additional insured and this is pretty standard your insurance agents uh know how to do this this is no problem but make sure that when you structure this in your letter of intent you're letting the landlord know hey we're even going to name you as an additional insured because it's probably already a requirement of the landlord and you've just addressed it up top you need to have your client supply the certificate of insurance prior to move in so we always make sure we're collecting it two to three days in advance we don't want to give keys out unless they supply the certificate of insurance it's very important for the landlord insurance is a big thing um on commercial units so agency disclosure uh here we want to let we want to let the all parties know in this case it's not always the case but that coldwell banker george realty is representing both parties landlord and tenant there and we put a little clause hereby advised uh to consult with their real estate attorney or their accountant so they can go ahead and and take the draft lease and consult with accountant or their real estate attorney of choice if that's what they wish to do but we want to advise on the agency disclosure now if it wasn't coldwell banker being dual on this we would put the other um you know the other uh agency in here so a lot of times when you're doing the letter of intents uh the the applic the uh client or the tenant does not want to submit everything for landlord review they want to submit this loi a letter of intent they want to see if they can uh agree on the pertinent conditions of the lease first and then if everybody's uh in agreement and and you've got the rates negotiated the the tenant improvements and things like that then the tenant you're going to collect the full application uh and credit report for landlord review what we consider to be a full application is an application uh signed by each applicant including the guarantor we also want a copy of a government issued id which normally we grab a copy of their driver's license the application is going to ask for their social security number we're going to need that to run credit we collect a fee of 30 to 40 dollars to run the credit report we don't do it ourselves and we also ask if they're self-employed we want two full years of tax returns submitted with that application if they are employed we want two to three months of the most current pay stubs so what you also want to check is when the applicant the client fills out the application if they own a property the landlord's going to be looking for that asset so if they own a property what she may and i do is we go in and we run title on that and we provide that in the application package so that the landlord is clued in that hey they own this house or they own this building so you always want to let the landlord know of those types of asset that the client may own so you see here that i'm using the terms landlord and tenant in your lease document it's going to be less or for the landlord and lessee for the tenant i use the landlord and tenant or shumay and i do to make it simple so nobody gets confused um you know maybe the client isn't um familiar with lessor and lessee so we keep it to landlord and tenant in this document okay the other thing that you're going to want to make sure that you are advising your client and this should be done right up top we've had people ask about smoke shops in in other areas which the city had said no now the city is back on board with allowing smoke shops so you want to advise the client to go ahead check with the city it's a simple call or a walk-in at most cities make sure that that business is going to be able to be licensed at that site sometimes um you know it could be under a cup conditional use permit um i'm not gonna go into all the explanation of that but a cup could take three to six months uh from the city so there's different things you would need to do in the loi and i want to show you something right here so what we were talking about is this being non-binding so you'll see this is what we put at the bottom of all of our lois so it says this letter of intent is solely for discussion purposes only each party may discontinue discussions for any reason whatsoever without further liability one to the other and we always put a valid how long this is valid for this letter is valid until june 14th 2022 at 5 pm so just make sure you have your blurb at the bottom we always make it a little bit smaller font and so that you're covered that way and you can feel very comfortable because again this is non-binding you can kind of look at it and see what the how the landlord's going to respond and then add any additional terms you may need to or respond to those so if you are i type this up if you're rep if you're representing the tenant um this is where you would add the commission it would be up in the loi so let's say xyz rel real estate uh realty represents the landlord and kobo banker george realty is representing the tenant so you want to make sure you're covering your commission very important for us to get paid so you're going to you know maybe they won't pay you on an option but you're gonna write it in the loi anyway don't put the amount you don't want your clients to know how much you're being paid but you can put commission shall be paid for initial five year and first the first five year option term at 2.5 percent sometimes commercial brokers are members of the mls a lot of them aren't you know they're they're on co-star they're on loop net so you can be asking the other agent hey how much is the commission and then make sure that you're putting it in to protect yourself you don't put the amount you just put how long um the payment now the landlord could come back and say no i'm only paying you on the initial term so that's a negotiation point um as she may says you know uh on the options you know sometimes they pay sometimes they don't but on the first round it does not hurt to ask okay so with that being said i am going to um turn it over to shumay we do have a list of types of commercial um leases that we can share with everybody if they want a copy but now i'm going to open it up unmute yourself and ask you may or peter questions or if they have any comments on this presentation take it away any questions i just want to add that the letter intent is a two ends uh store it can be used by the tenant as well as the as a source the landlord you know if the landlord if you're representing the landlord you can also approach a tenant and give them the letter of intent for initial terms and conditions at least yes are there any questions on letter of intents that she may and peter can answer for you um unmute yourself we have a lot of participants today so please unmute yourself and ask any questions you may have or if you're in a letter of intent you have a question on go ahead and ask us now you have uh shumei who does quite a few letter of intents every year so if you have questions for her go ahead and throw them in the chat box or speak up uh hi michelle this is steve i just have a oh oh i'm sorry just have a comment okay sometimes you know well when we are dealing with the uh tenant's improvement and if this is a i would say maybe a much larger scale sometimes i will put down so-called the these commencement stage and the rent commencement state for instance you know is tenant is going to do a lot of attendance improvement it could could take them maybe two months or three months or even longer for them to perform this kind of improvement plus they might need to go to the city or somewhere to get a permit but without a disagreement on their hand uh some of the cities they said okay who are you you don't have the authority to do any kind of job because you are not the owner so they should have some kind of uh disagreement on their hand and say hey look at that you know i got authority piece and the uh but you know during this kind of tenancy improvement period uh they are not generating any kind of income at all so we usually i will put down say hey i give you three months or whenever you convince the business you know to start to pay the rent uh that is the rain commencement state now let's come to one more uh issues which is they say we are talking about this is the uh five years fees now how do we deal about this is three months so if that is the that for instance if we give the disagreement say i give you three months of the tenancy improvement uh ti allowance period i will put down say five plus three that means you know yes uh the disagreement let's use the wrong number say starting from july first but actually you starting paying the rent from october 1st and this agreement has to be put down say the rent is going to commence from october 1st yes and this will be expired say september 30th uh september 30th is that the five years and uh 2025 or something like that you said that the way i'm going to handle that yeah and she may may have uh some comment on that because we do run into that quite a bit uh she may do you have any comment on steve's oh steve bring out a very good point say the commercial is sometimes it depends on the the size of premises and also the the demand so it's all up to the lease uh between the lender and tenant so there's more things that you can throw in like as steve mentioned there's a rent committee commencement day and then these commencement state there's also like an early access even though you don't have a lease signed by or you're heavily signed by you don't commit anything until that early access is done so it's a lot of things to uh cover today we just have a basic tell you a step by step to how to get into a commercial lease loi this is first step but in the future we will have more classes for you to cover uh different uh complicated lease term okay commercial lease in commercial field is very nice you know you don't uh pay attention this is a a lot of uh brand butter money for you commercial lease once the landlord and the tenant sign the lease you get paid it's not like selling residential or selling commercial property you have to wait for 30 days or 60 days escrow period and involved with the lawn and also the the the appraisal report all kind of thing so just start getting into commercial leads not the residential lease residential is doesn't make you money so let go concentrate on commercial lease then you will know you're not going to regret this is a good way to make money all right any more question about this uh beginning loi oh go ahead we have one in the room um yeah come on over oscar we're going to put him up by the mic so he can hear him okay go ahead uh yes or peter on the attendant improvements uh when they do the work um so the tenant pays for that working does he get any credit on on the lease on the rent or he oh it comes out of his pocket and he doesn't get reimbursed okay i answered that question normally tenant improvement they talk about the landlord reimburse or or pay the invoice that the attendant received from the contractor whatever but sometimes landlord doesn't want to pay cash in front they probably would say oh this is a lender's option that i either pick up your invoice or i will give you rent credit that means more free rent so two way to go the reason is that because they it's all depend on tenant uh experience if you have a strong tenant the little probably say okay i pick up you uh the the construction bill and then you sign off the mechanic lane everything so that's a one way to do but if you have a little bit weak tenant for example first time in business whatever the the lender probably will say okay i'm not gonna i will give you 10 improvement but that's not the cash in front that will be rent to credit in the future so that will take care of both state okay thank you you're welcome any other questions out there that we can answer yeah just to try to anchor what uh sumai said uh regarding the commercial lease uh this is back a long time ago the uh founder of a cushwick cushman and wakefield he makes money on commercial deals he made millions of dollars on commercial deals and the commercial beasts not commercial sales so donggu can look down on this kind of commercial dishes some of the landlord they will pay you commission if you can find them a good tenant now the key thing is a good tenant okay you have a look for a very great if you are so if i own a shopping center if you can bring me a 7-eleven and this is 7-eleven or even mcdonald's or starbucks or this can create a tenant if you can bring them to me i'll pay you commission because these tenants will enhance the total value of the shopping center you know if you look at these kind of so-called uh some of us single tenant and you may notice their cap rate is lower if that is a credit tenant uh mcdonald even the market right now uh you i rarely see elegant mcdonald's their capital is the uh higher than four you know quite a few of our mcdonald's their cap rate is is 400 so all of these kind of commercial visas on that sometimes the then dog even will pay you the commission if the owner i mean the independence sign the uh option and uh usually the way i handle that is hey if the tenant hand exercise option i don't charge the full commission i will charge by me say hey my first five years or first how long the years i would say i charge two and a half okay but when during the option period i would reduce to say one and a quarter fifty percent you know and only when they exercise the option i have a question for you michelle or she may now a lot of times the the commercial lease has an option to renew for another three or five years now in that case uh do you get the commissions out of the option periods and if you do and how do you keep track of it so that you won't the the uh the tenant will not get the crack that's a good question okay normally like a cbre they always charge the the commission on the option renew but uh later on the landlord pretty much like uh don't want to pay the option to renew because like steve said this center with a good tenant a major tenant whatever maybe five or six years later they they're gonna sell the center with a good cabaret and then they probably forgot that there's a portion of the commission in the option that little has to pay so that happens a lot of time so most of a landlord or sophisticated attorney will say okay we're not going to pay you commission in the renewal of option or if you don't think this is fair then i pay a small amount like a huge discount for example uh the commission on the option is two points or two point five percent the the lender will offer one percent in in the lease term so that means that extra one percent in the lease term so let's forget about the commission uh in the option so it's all up to you an agent that you want to wait for the the option time to nagging about the commission or you want to get a little bit more pay in the lease term like in my my situation i wouldn't just get the pay in front instead of wait uh uh five or six years later to renew the option in in sometimes 10 years i'm too old for that so i just current right now okay so that answer your question mr k another in other words you were affected in the commission uh for the option term but a much lower rate than the regular uh commission right correct if the tenant if the tenant never exercised the option then the landlord would have to pay you uh extra money for nothing correct but that that's the landlord's choice they wanna you know give you give you uh uh the contract say okay i pay you but of course when you get that pay then you will never say i'm gonna return you the money later and there's an offering case like you arrange 10 years lease what happened if the tenant just made it two years in the business so what happened next question yeah then what are you doing with that you actually haven't if you read the air small print that's it once you get a commission you don't have obligation to pay back to the landlord that's a contract over there yeah yeah but but in oral society like in this area probably you don't want to do that because you're going to see the landlord the little publicity good friend the relative or whatever so you the the the easiest way what i do is i will tell the landlord it's fine but i'm going to re-rent again and when i revenge i touch very little commission consumes that got paid already or something like that it's negotiable but nobody literally were pretty happy yeah i think i think overall it's better to be emotional with that landlord and you know you have more business to come with him you know leasing the arena so it's better not to not to get um you know get get to get in um that term of the with the landlord you know and maybe maybe you can offer even offer to lease their their property at uh for free for the rest of term you know that's another option yeah that is true and then uh i think steve will agree with me at least sometimes it's a window of the cell like you handle the lease for the shopping center you pretty much know every every detail of the shopkins center or you are acquainted with the management team in the shopping center in the future if the little one sell this property who you think that he will go us right so this is a good really good opportunity for you to get into right steve uh yeah totally agreed and it's a well for outcome i mean uh we are trying to establish the good relationship between the owner and the you and now uh suman brought out another very key issue which is the management now you have to be very careful some of the management company they will steal your crime yeah so uh uh uh so uh you know i i come across this kind of in your management company you know a couple of times and uh but what can you do it's uh the main uh the judgment by the by the owner so be careful uh [Music] on this kind of situation it could happen that is true that is true well that's that's uh that's the uh part of our business you can't get rid of that you cannot win more no well but you know you when you are presenting the landlord the landlord sometimes when after they acquire the property they will ask you a recommendation for the property management company so at that time you can you can bring in your favorite property management company and then maybe you you should have a you know a gentleman agreement with the management company saying that hey you know now you can do the management but when they come to sale you know i'll be responsible for the sale you know this kind of agreement is pretty pretty um popular in the industry yeah that's a good point that you can do that but doesn't mean sometimes you have a pretty good relationship with the management company now but later on people change they they change the attitude or they sold the business to somebody so it's a lot of uh area that you have to watch but you can do it all so just just just do the best yeah yeah peter you mentioned about it gentleman's agreement okay not all the people are gentlemen okay yeah and the uh uh for if i can do that if i recommend even i'd refer the management business to some some agent you know uh they come to me say hey please give me business then they betrayed me okay uh so in united states you are attorney you know everything in inviting so you know i've done listen say hey next time if i ever recommend any kind of management company of course you know i will not recommend just one uh but i if i recommend any of them i will put a site later between this company and me saying hey you are only handling management for any sales or anything like that it's me don't forget i i am the one who give you the business and the tenants i mean this management company is having on me twice already that's a very good idea steve yeah you know you you can't count on everybody being a gentleman nowadays you know yeah yeah that's that's your problem you know yeah right okay uh let me check the chat box i have a question oh okay so anna has a question uh she may i notice on some of your leases that you'll have where they'll give you half of the commission and then later on they'll give you the other half and i think it has to do with once they move in or at least and maybe that's something that you want to share with them no okay michelle can you repeat that question because it's oh okay so she's asking because she's seen on the paperwork that when you um when the lease is executed you're only receiving half of the commission amount and then at some point uh she said when the she believes it's which is correct when the business opens you're receiving the other half of the commission could you elaborate a little bit on that okay this just happened recently after kobe because a lot of business before kobe they had a lease agreement everything and then the the the the who the agent got paid already but after the kobe the business never opened so the letter think that this is not fair for me i paid everything and then the tenant never opened i lost a lot of money so the little will ask us you know i not even i lost the tenant but also pay you the commission so can we take it easy on the commission so that's the way that we sort of like to give a little insurance that you know you'll be okay so we get the half of the commission upon the both parties signed the lease and then have the commission when the tenant open for business so that will actually solve a lot of problems it's just the way i think maybe will help because sometimes at beginning once you sign the lease by law you should cause you you should collect all the commission but that is the most difficult time for the landlord sometimes littler has to pay ti has to update the property this and that and then you the deposit the security policy and first months rent the money they received level received upon signing the lease probably not enough to pay your commission that time so what you can do you just give them a break okay to collect the commission and this is just the tip of the iceberg um we have an invoice that we prepare and um if you have a lot of commercial leases out there as shimey does we keep an excel spreadsheet so we know what's outstanding what's due but um you create an invoice and um she may can share that another day like how that works or we can share that in training as uh so that you know how to bill for your commission is there oh there's a question in the chat box it says um are there any particular websites to search for commercial leases besides the mls does cbgr have an in-house commercial lease listing platform that we can see okay normally i would suggest you start with the air lease air lease is uh prepared by a bunch of attorney and quite a often they change the term and everything so and then the arr side has a different lease they pretty much give you a good idea that the the nellie's groceries if once you review all the leads from air then you about 80 know what's going on even cbre sometimes the language is from air i think the air is a really good site for commercial leads and steve and i we both use that a lot it doesn't mean that you have an attorney then you will have a perfect lease sometimes you know attorney has to be really understand the lease so i would say arr is is a good place that you start learning commercially and you can and remember as we've announced a few times you can buy the suite of air documents now through car i believe it's 199 annually yeah that is one heck of a deal yeah that's a good advantage oh man it's great because you know for 199 a year you could buy that suite and start familiarizing yourself with the lease documents yeah and also you don't need to pay a fees yeah and that saves you a lot of money too because even if you belong to the air and when you're using the ai forms and when you print it out you have to pay the fees which may it cost you like ten dollars of per contract and then if you're making a lot of uh uh commercial leases uh it will add up you know but but if you use the air cle uh form for uh using it uh with the uh the s um it's free and they only have to pay the 199 per year and that will pay for all your your forms from their and we have a question go ahead i'll show you a comment nice me asking question again um will you become a member of a rr for the one that they're talking about right now when you pay once a year uh they will also teach you um they have classes every day at ten o'clock in the morning new members yeah yes i like to mention that okay thank you that's really nice um and ray you wanna know where to search for leases um where to look what websites to look for rather than just mls uh there's a good place to search for is that a little net and also co-star too yeah so if you if you are a member of the alumni or coaster you can start searching for that in those areas and if you need help on that i can i can hook you up with dennis lee who's the representative for lupnet and also co-star and as a matter of fact they're going to have a seminar next week the third wednesday of the month when we have commercial meetings at uh 11 o'clock so if you want to know more about it be sure to tune in uh next week okay on the on the 15th at 11 o'clock it's also going to be a lunch and learn um type of thing you can come to the meeting room or you can attend by zoom okay so that's next thank you yes thank you we'll meet you there okay great so if um is there any other questions it's very good i think there's very good meeting everybody has a chance to talk and it's open forum and a lot of good and educational information so um very good michelle good job oh yeah no thank you for shami and peter's participation and we'll continue on because there's so much to learn so we have to do it as you may said piece by piece yes so we'll continue on but um yeah thank you everybody

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