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Paradox Barbershop LLC

A local barbershop operator used by Mike as the mom-and-pop-credit lease example. The lease is backed by a personal guaranty from individuals Jeff Phan and Martin Cortez, jointly and severally, who unconditionally guarantee rent and performance. This is the highest-risk credit tier for an investor: underwriting rests on a single location's business and the personal net worth of two guarantors, not a corporate or multi-unit balance sheet.

Key Facts

  • Guarantors: Jeff Phan and Martin Cortez (jointly and severally); guaranty in lease §15 + Exhibit H.
  • Tenant responsible for rent, taxes, insurance, and non-structural maintenance.
  • Illustrates Tier 3 of the credit framework — highest cap rate, highest risk.
  • Underwriting this tenant depends on tenant financial due diligence: annual disclosure rights plus Yelp/Google/social-media reputation checks.

Sources

Paradox Synopsis · Retail Lease · Guaranty · Tenant Due Diligence Q&A