Intriguing Situation
I would like some input and direction, I have been considering making an offer on the apartment complex that I am currently living in, but I would like to get some advice and maybe some direction as to the best way to approach. I would be open to criticism and maybe some step by step approach. Thanks
More details will follow about the apartment. Just wanted to get a post on here. If you have specific questions I am willing to share. Personal info on a per basis.
[ Edited by johnls on Date 03/20/2009 ]
In cold calling I have had a better response having my atty write a letter.
BK court is a source, but takes alot of education.
have you ever lived in s.e MI or Detroit. I was born and raised there.
The economy is problems are hitting there more than anywhere.
Well there is a standard list of questions here:
How do you know its a 12 cap? Are you using the sellers numbers, your own, some other source?
Does it stay a 12 cap if rental rates drop 10 or 15 percent in the next couple of years?
I am sure there must be some parts of Detroit that are acceptable but everything I hear is ghetto. Figure in extra expenses for ammunition and medical bills (only partially a joke-- actually figure higher vacancies and especially collection problems).
It looks unlikely that the auto industry is going to turn around anytime soon and Detroit is still basically a one industry town.
people make millions out of being slum lords, but know what your getting into.
I use to live in Detroit and know that some areas are still good areas to own. Are you going to have property management in place? I am pretty sure you are getting the property for a good price. I receive deals from Michigan all of the time and know some investors that are doing pretty well. I am trying to get my sons involved.
[addsig]
this is complicated enough and risky enough (you fix the place up and the owner keeps it) to hire an atty.
Out of curiosity, what do you plan on offering for the master lease, and for the option? What would you use as the "in 3 yrs" value.
Incentive for owner...(1) higher sales price, (2) tax free payments, (3) guaranteed rental payments while not having to manage the building a the term of the lease.
Best,
jon.
Quote:
On 2008-07-28 13:09, jstrishak007 wrote:
Incentive for owner...(1) higher sales price, (2) tax free payments, (3) guaranteed rental payments while not having to manage the building a the term of the lease.
.
How on all of these? Tax free? guaranteed?
Well, not guaranteed, nothing is truly guaranteed but depends on your ability and experience as an asset manager.
Best,
jon.
I like the bond for deed.
If you can get him to understand how a zero coupon works, that would be great.
I actually like this idea. I was pitched a REO APT in TX that this might work well for.[ Edited by cjmazur on Date 08/21/2008 ]
I would also like to hear how the payments are tax free.
I have heard of a master lease in the past, what is it?
What kind of building is it?
Would the master lease be under a Delaware Statutory Trust?
Jason Gilbert claims to have patented these techniques, however, he sometimes comes off to be a lying, money hungry type of individual.
Has anyone utilized his techniques successfully?
Because of the area it could be possible.. Homes could range from 600-1000 depending the location(E or W). where on gaston?