Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Lease: A contract that creates the relationship of landlord and tenant. A contractually binding agreement that grants a right to exclusive possession or use of property, usually in return for a periodic payment called rent.
Lesson Nugget: A lease agreement is between the tenant and owner regarding the space that covers the cost, amount of time the space is accessible, and what you can do in the space.
Lesson Nugget: Lease agreements document the obligations and rights of the tenant and landlord. If discrepancies arise between the two parties this contract can be enforced in court.
Lesson Nugget: There are several benefits to hiring a broker. They can assist tenants in finding the right space for their business, provide education on the real estate market, and help with negotiations.
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-All right Thrive nation, I'm Clay Clark and we are here today on Thrive15.com, one of the alternatives to lynda.com, joined with the man with a plan, the host with the most, the guy that-- he almost makes you cry when he talks to you about real estate. It is Michael-- there is no real estate topic too obscure-- Burer, and we are talking about a topic called lease. We're talking about this word called lease. Now, I'm going to go ahead and read the definition, and he's going to bring a little bit of clarity, some context from his career as a CFO of a billion dollar real estate company, and one heck of a low post basketball player. So let me go ahead and read it off to you hear. A contract that creates a relationship of landlord and tenant. A contractually binding agreement that grants a right to exclusive possession or use of property, usually in return for a periodic payment called rent. My friend, what does that mean?
-Well, it's simply the agreement between the building owner and the tenant, regarding the space. And so it's going to cover a variety of terms, but most often-- what are you going to pay for the space, how long do you have access to the space, what can you do in the space? And there's a lot of other clauses that could be involved.
-I have a little confession I'd like to make here on the-- Thrive is sort of a therapy for me. Sometimes I just share things I would never share with anyone. I just share it with thousands of people. So here's something I want to share. Years ago, we leased some space in Tulsa, and other wedding vendors would say, hey, I want to be there, too. And I would say, sure. You want to be here? This is how much it costs a month. And they said, sure, I'll pay that much per month. So they said how much is it per month? And I said, well, I pay $7,000, so for you, it's going to be $1,500 a month, plus I'm going to refer you all the time. It's going to be great. There's that synergy. Brides are coming in to see you. Event planners are coming in to see you. They're coming in to see me. This is a great thing. Synergy-- there's an energy in the middle. Feeling good.
MICHAEL BURER: I'm feeling it.
-But then, my wife, who's so incredible, and hot, and smart, and just hot, but she says, hey, maybe we should have them sign a lease agreement. And I'm like, my word is my bond. Why would I need to do-- I'm not going to mess with a broker. I'm just going handshake, write it on paper. I agree. You agree. Let's do this thing called a lease verbally. My wife says I don't know if that's a good idea. I said, baby, I have it under control. Well, first guy doesn't pay me. Second guy doesn't pay me. Third guy is like, I want to pay you, but I'm going through a thing. I got this thing going on right now with this girl, but there's this thing on with this dude, and I got this thing. Anyway--
-A written agreement.
-Yeah, so talk to me about why do you need at lease. And when you have a lease, how enforceable is that thing?
-Well, as a tenant or the landlord, you both want the agreement in writing so you know exactly what your obligations and your rights are. And it's very enforceable. It's a contract. You can go to court, and you can enforce it. And as a tenant-- especially a first time tenant-- you can get forms that are kind of pre-approved or standard in your area by your local real estate organization that will spell out all the kind of terms that you want to consider as you negotiate those documents. Not just rent, how much you're paying, or the length of the lease, but all the other kind of terms that you would want to consider as you negotiate this document with your landlord.
-I feel like it makes sense to pay whatever you might pay to a broker to help you through this process. I believe that. Do you agree, or am I wrong?
-As a tenant, brokers can help you a lot in finding the right space, educating you about the market, what you should be paying, and then ultimately negotiating with your landlord. So there's a lot of benefits to having a broker. Let's say that I own one property, and I've got an extra 2,000 square feet I want to lease out, and I am not the CFO of a billion dollar real estate company. Let's just say I'm not. Let's say I'm not. This doesn't pertain to you, but other people. Would you recommend we hire broker just to help me get the initial agreement set up, or do you think you should just go to Office Depot, find a standard agreement, hit print, boom, you're good.
-There's a lot of benefits to having a broker if you're going to be marketing the space. If you have a vacancy, they're going to be making sure it's out in front of potential tenants. So a lot of benefits to always have a broker involved. Even if you're going to use a form agreement later on, they can help you understand what's a market term-- what are the market terms.
-You know, your wife is an incredible lady, and my wife is an incredible lady, and I was kind of trying to figure it out-- how we're related or potentially related, and it's very complicated, and I don't know. And right about the time I started to almost figured it out-- my mental. I couldn't. I just stopped. But I do know that both of our wives appreciate eating healthy, and so I wrote this one here. This little note of appreciation for your wife and my wife is kind of a way to weave in that healthy lifestyle they're trying to get us on. So here we go.
-Let's hear it.
-Michael I appreciate you much in the same way that I appreciate organic coconut milk with my cookies. Coconut milk. They the milk out of a coconut.
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