You know what really grinds my gears in commercial real estate
When a tenant wants a bunch of TI dollars and free rent , but doesn’t want to sign a personal guarantee.

It makes no sense to take a chance on you with no way to recover losses if they don’t pay.

We never do a deal that doesn’t require a personal guarantee , unless it’s a cheap deal where we are giving nothing.  Even then I will still ask for one.

What grinds your gears ?!?
[{"id": "hjzguhn", "text": "Brokers that hang up on me when I say I\u2019m an appraiser. Ya don\u2019t have to divulge a sales price I just want your opinion! I have valuable info to share as well if y\u2019all can spare a couple minutes", "replies": [{"id": "hk03n2s", "text": "Open up with exactly that. See how that goes.", "replies": [], "depth": 2}, {"id": "hk08efa", "text": "We have been trying to contact you regarding your buildings extended appraisal", "replies": [], "depth": 2}, {"id": "hk0lhye", "text": "This is my entire life! It really is specific brokers that just don't care at all, but some answer on the first ring every time and are always more than willing to share. Drives me crazy", "replies": [], "depth": 2}, {"id": "hk2cetv", "text": "Offer to send the adjustment grid with the subj removed in return", "replies": [{"id": "hk2fwb0", "text": "I typically offer to share my comp set, to be a resource for them in the future, or offer up a recent sale nearby. However the conversation often doesn\u2019t get that far.", "replies": [], "depth": 3}], "depth": 2}, {"id": "hk5xkxq", "text": "As an owner loopnet drives me bonkers.  And I\u2019m in a rural market so there data is junk.  \nI give, they receive.  I stopped responding to them years ago.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hjzh8kr", "text": "Related to yours.  How people in the industry that have been doing this for awhile, even some with moderate success, can just magically suspend the relationship between Term (asking for short term leases post-pandemic), TI, and Rate.  Boiled down, you can have two of the three.  Probably never all three.  TWO.  And yes, we'll be getting a personal or corporate guarantee, and yes we'll ask for and review carefully audited financials.", "replies": [], "depth": 1}, {"id": "hjzhx3v", "text": "Eviction moratoriums", "replies": [], "depth": 1}, {"id": "hjzjidx", "text": "&gt;doesn\u2019t want to sign a personal guarantee.\n\nOn the other side of this, sometimes businesses fail for reasons outside of the control of whoever signs that personal guarantee.  Tenants can't magically see into the future either.", "replies": [{"id": "hk0fdsc", "text": "As I say \"if you arent willing to risk your money on your business why would the landlord?\"", "replies": [{"id": "hk0g5wp", "text": "I think there's a difference between signing a personal guarantee for a year or 2 versus expecting it to be signed for a 5 year lease.  I can't blame the landlord for wanting to get their capex back, but as a business owner myself, I wouldn't want to lose other assets after a business didn't make it because I was expected to pay for an empty building that isn't making me any money.", "replies": [{"id": "hk0gbkq", "text": "I feel like buyouts that cover unammortized ti/commissions/etc are better for that personally.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hk00794", "text": "100% agree. I let em walk if they are so fucking arrogant as to even ask for non- recourse. I will also never do free rent, even for deep pocketed tenants.", "replies": [], "depth": 1}, {"id": "hk07tth", "text": "If more than 90% of the tenant's personal net worth is tied up in the business, does a personal guarantee even mean anything?", "replies": [{"id": "hk0ag29", "text": "Yes", "replies": [], "depth": 2}, {"id": "hk0fu8f", "text": "&gt;If more than 90% of the tenant's personal net worth is tied up in the business, does a personal guarantee even mean anything?\n\nyes, you can cash out the business and LL can't go after you without the guarantee", "replies": [{"id": "hk0kmnm", "text": "What do you mean by cash out? As in, sell the entity while keeping the business operating, or shut down the business and take all the cash personally?", "replies": [{"id": "hk0m3wq", "text": "Liquidating and then making a dividend to the owner of the proceeds", "replies": [{"id": "hk0o342", "text": "That would be a pretty clear case of fraud and the LL would be able to claw back those proceeds from whomever received them. At least in my state, YMMV.", "replies": [{"id": "hk0oyq4", "text": "And deal with the litigation? At some point it\u2019s much easier to just get the guarantee. Also not all dividends to the owner are fraudulent, it\u2019s only if they\u2019re concealing assets in a bankruptcy, but if they downsize the business and take out some cash, etc. there\u2019s a lot of different issues you can avoid with just a guarantee", "replies": [{"id": "hk0q58l", "text": "If they're going to the effort of cashing out to avoid paying you, you'll have to litigate anyways.\n\nNot that it wouldn't be easier with the guarantee than without, but LL can always go after the principal personally if they're paying themselves before they're paying the LL.", "replies": [{"id": "hk5o4x5", "text": "Not only do you have to pay in money and time for your litigations in a potentially tenant friendly state but what if the individual declares bankruptcy on their business now you have no personal guarantee and I\u2019ve run into this before. It\u2019s already hard enough to collect on someone who does personally guarantee the lease.", "replies": [], "depth": 8}], "depth": 7}, {"id": "hmgvddu", "text": "that's why you have an indemnification signed on the lease to a specific individual and his momma", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hk08ldm", "text": "Man I thought I was doing a cheap deal with a stand-up person who was referred by someone I trust...so I didn't ask for a PG. 6 mo later I've barely recovered taxes and insurance from her. Giant waste of time, never again.\n\nMy pet peeves would be tenants wanting lower rate leases where I only cover structure and roof, no management, but then constantly bugging me to fix at no cost all the problems (or desired improvements) that crop up.", "replies": [], "depth": 1}, {"id": "hk0fvsc", "text": "People that change shit last minute.  Oh gee we spent a month negotiating the loi then another month with the lawyers on the lease, sure its a great time to decide you need more free rent, ti or the rates too much when its time to sign.  \n\nEveryone knows you know what you are doing and are just being an asshole.  Dont be that guy", "replies": [], "depth": 1}, {"id": "hk0ib20", "text": "Sellers who will only sell \"as-is, where-is\". May as well not even be for sale", "replies": [], "depth": 1}, {"id": "hk0is5u", "text": "What about when a person calls you for a space , maybe even more than once and demands to meet that day or ASAP\u2026 then they proceed to never show up or answer again\u2026..", "replies": [{"id": "hk0x4fm", "text": "Or after you\u2019ve told them the price keep pushing to meet you and tour and confirm it\u2019s in the budget\u2026 then say will do a deal for like half the price on site when you meet them. retail drives me nuts sometimes", "replies": [{"id": "hk10ekm", "text": "Love that", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hk0xff8", "text": "When residential brokers try to do commercial deals. Don\u2019t understand LOI process and really just make the process worse. Stay in your lane. You don\u2019t see me trying to sell houses", "replies": [{"id": "hk10a8n", "text": "That\u2019s a good one lol.  Or a person that wants the space is also a \u201cagent\u201d and wants half the commission \u2026. Or the broker shows up in the 23rd hour has done nothing and wants there commission", "replies": [{"id": "hk1s5pm", "text": "When Landlord agents reach out to tenants for renewals when they know they were represented on the initial term. (Tenant rep broker).", "replies": [{"id": "hmuatwy", "text": "I always carve out commissions on renewals.", "replies": [], "depth": 4}], "depth": 3}, {"id": "hk2btuu", "text": "&gt; Or the broker shows up in the 23rd hour has done nothing and wants there commission\n\nAlways nice when you meet with someone multiple times , send loi to them, and it comes back with their sister in laws part time nephews remax rep statement added lol", "replies": [{"id": "hk3cqec", "text": "Lol!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "hk1lyyz", "text": "HAHAHA this is funny. And I agree.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hk1w1kx", "text": "Oh boy, I had a potential Tenant who I spent countless hours negotiating with, writing proposals and like 10 versions of the lease, and tours and meetings with contractors all to have them go 0 dark 30 for 2 weeks after they said they were happy and going to sign with a pultry 10% of ti money contribution and not guarantee agreed to only to have them find another location... no call from the ceo or broker.  \n\nWhen I found out I told the broker to never call me again and that him and his company are not welcome to any of my properties in the city.", "replies": [], "depth": 1}, {"id": "hk2e04w", "text": "Totally depends on the condition of the space and tenant in question.  If a restaurant operator with 15 units wants a 10,000sf space for a new beer garden / brewery concept with a big patio and food, you bet your marbles we are going to do the deal without a PG as long as his parent company guarantees a portion of the lease, or even has an obligation to compete the buildout and open to the public for one day, fully fixtured and staffed.   My point is that if you are rejecting deals only because there is no PG, you are not creative enough in your deal making.   No offense intended.", "replies": [], "depth": 1}, {"id": "hk2h921", "text": "When a lawyer gets sent a PA to review and trys to participate in a commission.", "replies": [], "depth": 1}, {"id": "hk2rxxu", "text": "Used to grind my gears but now I see this as a pretty easy indicator that they won't be the tenant. No need to waste time on them.", "replies": [], "depth": 1}]