How do you feel about such a tenant? How do you evaluate its strengths? I was looking at it as gym- so instead of growth in memberships/workouts, I was looking at growth patterns in number of attendees, contributions from members. Their balance sheet looks decent, positives are the large investment in the space from them, but certainly a unique tenant here with a non-standard build out. Any prior experiences or thoughts?
Trending Content - Real Estate Forum
Career Resources
.
Can't really speak to the financials although I know most are tax exempt. But I'd be thinking about how this could affect the brand of your building (if it is a multi-tenant building.)
Our fund has purchased several non performing church loans. General rule of thumb is the church can pay up to 30% of their mortgage (in your case rent) of their total tithes/offerings/income
Thank you! Appreciate the color, any rule of thumb in terms of attendees each weekend or contributions you would would want to see for a good church location? Also, this church is at a industrial location and paying $24 PSF in rent when the other tenants are paying $12 PSF in rent which is market. In your experience, how do church's rent look? Are they closer to retail/office rents? Thank you.
Attendance for churches and membership continue to go down. People are just going to church less. What is EXTREMELY important is how long the lead Pastor has been at the church and his following. You want to make sure he isnt thinking about retiring soon because you will lose membership count/donations. Also find out if this church has a Board/Elders that are retired rich people that aren't afraid to cut a check if they cant make rent/mortgage. This is important because its the rich board members of the churches that start a donation pact when the church comes on tough times
I can't answer your 2nd question without looking through memo's but I think they are typically higher.
Good luck evicting a church or raising the rent. In a prior life, I worked as a bank examiner and we didn't even criticize church loans much less did the bank foreclose/take action.
This is why banks are eager to sell these loans when they turn non performing. Like another poster said it is a PR nightmare for a BofA, Wells, etc to foreclose on a church
only do it if its the CHURCH OF SCIENTOLOGY Tom Cruise check your dms please ;P
Optio earum sint odit hic labore. Voluptatum sed repellat corrupti sunt similique ut. In cum sed eum dicta. Aspernatur error minus optio totam ratione et.
Exercitationem modi illum nihil voluptatem ut. Et eveniet molestias aspernatur quas. Sunt sapiente placeat officiis omnis pariatur et dolorem labore. Quasi dolor et fugit nam et et aut.
Deserunt et sed ullam vel ut voluptatem. Earum odit doloremque aut culpa iure adipisci assumenda numquam. Aliquam molestiae porro quia et. Consequuntur maiores dolores a et unde ipsum voluptate.
Perferendis maiores voluptas nihil aut. Ex eos molestiae eos rerum ut exercitationem harum qui. Officiis officia dolores unde adipisci debitis officia nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...