Hi.
About a year ago my mum died. I'm an only child and I inherited basically everything. I'm pretty young and I only ever rented before.
The main asset I inherited was the family company and the main investment is an extremely profitable building that generates roughly 2x my earning potential. It has low debt, and If I sold it, I'd be a millionaire with no debt.
Its a good building, and the tenant has been there almost a decade with half a lease to go.
About a month ago he started whinging that he wasn't using the offices. Then about 2 weeks ago he told me he was flat out not renewing the lease. The he said he had to leave and he couldnt afford the rent because it was too high.
So I told him he could sublet or get a new tenant but the contract was not changing, because since his lease was signed, the market in similar buildings has dropped by 12k per year, however he rented that building at 60% its value for 5 years in an economic downturn.
Last week I was basically approached to sell the building outright to a prospective buyer. He gets out of the lease and I no longer have an extremely profitable source of guarenteed income for 3 years.
I have about 3 realities ahead of me that I would really like some input with.
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I refuse to sell the building, I uphold the terms of the lease and I things don't change, I just have to find a new tenant in 3 years, which I was happy to deal with.
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I refuse to sell the building, and in response he goes bankrupt because he may have financial trouble that he is not being up front about. There is a personal guarentee on the lease, however he will have assets hidden. Also his workforce is half what it was 3 years ago, in a city that has zero requirements for his business now.
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I sell the building, and lose the income, but im protected from a tenant possibly going bankrupt after showing signs of trouble.
My biggest problem is that I wanted to sell this building at the start of a lease when the yield was low and the market was high. I feel like Im being bullied into a corner by this guy whos forcing me to sell because if I don't he will just possibly liquidate his company and run, and I'll be left to pay the bills and mortgage of a company that pays for itself.
Being pretty new to owning literally anything that has value, this shit is giving me massive anxiety. Like I was pretty content this past year and for the past month all I have done is worry non stop about this guy liquidating his business and i'm left with basically no income and 40K a year in bills to pay.
I'm pretty young, I'm not established in my career and I took the year off to essentially learn how property works in the business sense. However I really needed the next 3 years to build a cash surplus so I could leave the building empty if there was no tenant like in the past.
Submitted May 11, 2019 at 04:59AM by speedythesequel http://bit.ly/2JFD4EX
