CAN?? you sell rental income? - Posted by Paul Macdonald

Posted by David Alexander on December 17, 1998 at 09:51:10:

You can find someone to buy to just about any cash flow
you have to sell. The Industry has evolved from selling not just the asset but the cash flow itself.
I’m not sure as I said in the other post exactly what
would be used as a guarantee, I’m sure that would be up to negotiation. I don’t know if anyone would want to buy out a full lease unless the numbers were atounding
and they could use the property as collateral in case of default. Also, people buy cash flow with particular yields in mind. With the numbers you’ve posted the yield doesn’t look particularily exciting. But, you would need to post more numbers to be sure sure.

David Alexander

CAN?? you sell rental income? - Posted by Paul Macdonald

Posted by Paul Macdonald on December 17, 1998 at 09:19:04:

I’ve tried a couple of places and found no one that would invest in that fashion.

Tell you what I’ve got and if anyone can/will/wants to talk please give me a call/email. I’ve got five residential properties rented out to corporate tenants. Residential housing. Long term leases - 4 units at 5 years, 1 at 10 years.

I do not want to sell the total rents. Just a portion of the positive cash flow. I’ll sell up to $4000 per month of positive cash flow. I need at least $190,000.

Any ideas, offers, leads or whatever?

Paul Macdonald

Yes - but it’s a created financing situation - Posted by John Behle

Posted by John Behle on December 19, 1998 at 12:13:22:

As we discussed on the phone, your deal would be something a private investor might be interested in, but you would need to explore it through the investment groups, exchange groups and other resources we talked about.

If it is hard to get the investor to loan against the income alone, then pursue the “collateral rental” option through the dead or stagnant equity in properties. There are many investors out there that would like to have greater cash flow and put their equity to better use. A 2% spread ought to be enough to attract them. Find them through the exchange groups.