Raanan Katz “Business Model” Makes Defaults Profitable

You may remember the story of Raanan Katz “default game", demanding astonishing amounts from former tenants as “unpaid rent” through the court, while receiving the rent from the current tenants FOR THE SAME SPACE AND TIME.

Does Raanan Katz business model make defaults profitable? The ugly chain of demanding rent from two tenants (one former, one current) for the same space and time starts the new era of making money opportunity in a commercial real estate leasing.

I have been seeking the answer to the question whether Raanan Katz “default model” can be deployed by other commercial leasing companies or its exclusive to Raanan Katz and CO.

 

Acting on this “default model”, and acting quickly enough to rotate the tenants, can lead to significant financial or opportunity profit, and increase the potential of being successful real estate commercial landlord.

The key of this business “default model” is having a good flow of potential tenants to implement rotation and two important clauses in the commercial lease:

1. Acceleration - allowing to demand rent in advance till the end of the lease (the longer the lease term, the higher opportunity profit)

2. Automatic Lease Renewal- allowing to renew the lease without any act from tenant’s side

Especially effective the “default model” can be implemented to small business tenants, when they do not plan to allocate sufficient budget for legal services.
Raanan Katz represented in Miami Court in his "legal" extraction scheme by Miami based attorney Todd Levine.