Master lease

General Real Estate Investing
1

Can someone please explain what a Master lease is? I’ve done a search but haven’t received a defining answer.

I have been dealing with an investor with property all over my area (rehab sfh, rehab multi units, rented sfh, rented multi units). She and her partner are older and growing tired of the business. While talking yesterday, she mentioned several different methods in which we could “creatively” work something out whether it be one unit or several as a package, one of which was a master lease. She gave me HER definition, but I want to hear from any of you as you don’t have anything vested in this and aren’t trying to sell me something.

Please don’t get me wrong, she hasn’t tried to push anything off on me or talk up her properties. I feel she is/has been quite honest. I just don’t take peoples word when they are trying to sell me something and then tell me how we can do it without doing my own research. Also I’d like to mention just because she is willing to work with me, if the numbers don’t work in a win-win, then they don’t work and I walk. I have learned that much.

Thanks for any and all help. So please, define a Master Lease.

2

abinvestments,

What this investor is referring to by using a Master Lease is combine several properties under one lease, which means all or none if things go bad with one property you are still required to pay for all of them.

It is not about what a Master Lease means in essence, it is about doing your due diligence on whether all of these properties combined together will be worth leasing.

There are quite of few investors who are tired and looking for someone to bail them out and unless you are familiar with renting or selling properties, then again due diligence will point you in the right direction.

John $Cash$ Locke