Ground Leases Explained

Ground Leases Explained // Once you've been underwriting commercial real estate properties for a while, you're bound to run into a unique deal structure called a ground lease. And ground leases can be tricky (and somewhat difficult to understand), so in this video, we're going to break down what a ground lease is in real estate investing, and what to look out for as a commercial real estate investor when analyzing a real estate investment with a ground lease component.

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[mrubio]

Also, I may be looking into your courses, thanks a bunch!

[jeffrobins]

Thanks for the videos. Question. As a lessee to a ground leased house who pays the property taxes?

[mrubio]

Thank you for your knowledge, I have to ask, what is the name of the art behind you... just pay attention to detail.

[fijiandevil]

If you buy a ground lease that is leased by National tenant what happens at the end of lease? How can you potentially lose when the lease is over? Thanks

[MichaelSchumpert]

Consider I have a piece of land with a groundlease. Is there a simple way to calculate how to value it if I wanted to sell?

[Sunshineourtime]

I want to lease my land for wind turbine. Can your class help with having a better understanding of this process?

[Shepoetik]

This was great information. Just a question, I entered into a ground lease where a home was already built by another lesse. However, I'm now the new lease. The lease that built the home is in range and is asking questions. Does the lease have any right to the house he built? Should I be concerned with this, or this is not my fight?

Thank you in advance

[greenknight]

*HELP* if you’re considering taking a buyout on estate property, and some of the properties (land) have been leased for 99years do you add the value of the leased lands to get an accurate estimate for the buyout?

[CPWP]

This guy is great I highly suggest his content. On Udemy I believe each course is around $30 bucks well worth it.

[lesterciudadreal]

HI Justin, thanks for your videos! Question, is a ground lease treated like debt? ( e.g. Below the NOI) or is it an operating expenses? (e.g Above the NOI)

[meesuncho]

What if I buy a nnn property on the ground lease, what happened to the building( who has the ownership of the building) property at the end of ground lease?
Could you please explain this?
Thanks

[glorifiedrealtygroupllc]

Now after all that has been said, would it be more profitable for a (vacant) land owner to rent to a farmer for cattle grazing or to an oil company who is wealthy to prevent a maximum amount of damage to the ground? Or would it be profitable to lease to BOTH??

[theeaskey]

Are ground leases the same as recreation leases

[khaledmohamed]

What happens if the developer files for bankruptcy or defaults on there Bank Loan? Can you please explain.

[shelbytownsend]

Hi, I really enjoyed your intro video. This information was priceless and sparked my interest! Can you provide some examples ie case studies for a few ground leases for example for businesses like (McDonalds, 7-11, Burger King) etc in terms of putting a package together, determining the lease price and negotiating for an extended terms for the lease. I like to see what a ground lease package consist of from start to finish. Can you do something like this?

[BobMarley-ezss]

Great video btw. I am looking to invest in a ground lease deal signed for 20yrs with 3 5yr options that has 13yrs left on the initial deal with a 9%cap. Should I be hesitant about purchasing due to the fewer number of years left on the lease? The tenant is part of a major jewellery chain, if they were to leave after the lease period, Would I have issues leasing/selling the building?

[Dr.G]

When does financing a ground lease become problematic? I am part landowner in something that has 34 years left...

[Trent_Travels]

Hello Justin - currently working on selling a deal that has a 30-40 year ground lease. From a modeling perspective I don't think there would be much change if we are modeling out 10 years of cash flows correct? with basic assumptions.. as the lease would still be in place.. It would really be on the buyer to determine their exit and hold period correct? Would there be an instance to use DCF? not sure if that makes sense for this scenario.

[Woodshadow]

A lot of people have questions here that they should really talk to their lawyers about. Without seeing the lease there is no way to give you answers. This video is a great introduction but it is just an introduction.

[bahramx]

thank you for shearing information.
i have a question?
new neighbor moved to next my property with 5 years payment plan with rent to owne deal that means they are not owne the property yet.
and they start cut all big trees over 150ft tall and they traspass cut few of my big trees and solded.
im wandering how is responsble for damage?rentals? or property owner?
please halp thank you.