If a seller is selling a building with a vacancy, there is a reason for that. Filling commercial space can take more time than you think (even if you work really hard to contact many prospective tenants). An additional idea not included in the video is to write in your offer that you can have the right to list and lease the vacant space while you are completing due diligence before closing. The pro is, you have more time to advertise the space but the con is, if you fill the space but don’t close the deal then you wasted your time. I always operate with the intention to close every deal I get under contract unless something unsolvable (between buyer and seller) is discovered during due diligence. The key takeaway for seller rent backs is to have a minimum of five months to cover your monthly income while you find a tenant to lease your vacant space.
I recently shared 12 key challenges that I faced during my journey to acquire over $225M in multifamily real estate. In the