I am leasing from Austin Davis for my 2nd year, I can get a 15% discount if I prepay for year 3, is that good?
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I have a real estate lease coming up for renewal, I am happy with it and have had it for 2 years, if I prepay for year 3 I can get a 15% discount, is that good? I plan to keep leasing for another 5-10 years and have the extra money to do it, should I ask for a larger discount or is 15% a good discount for prepaying for a year? I want to be with the program and get a good deal with it, but want to get the best deal I can.
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Answer:
You can always ask for a larger discount as usually you will want to pay month by month for your cashflow, but if you have ample cash to prepay for a year then you can save on your lease. The commercial real estate market varies from region to region, but CRE in general depends on the demand in your region. When I develop my CRE program investment plan for the year in a location I always evaluate all options. It does not matter that you are leasing from Austin Davis as it is up to you and who ever is in your lease agreement with you to develop what is best for you both. You will want to come to an agreement on your CREprogram investment plan and plan in advance the expenses you project for the year to insure you have ample cash for your investment plan. When you talk to Austin Davis you can ask him for a larger discount and see what kind of response you get. The commercial real estate program investment plan you develop will need to be one that you can budget for your year though. You do not want to develop a plan that effects your cashflow investment plan and puts it in a negative outcome at any projected month in the next 12 months.
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