another approach - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on September 02, 2003 at 22:49:37:
Well, Ok, if you want to do it that way, do it.
Now, if she is looking at the comps, she probably will want close to market value for the properties. That is not conducive to quick resale for a profit, in my view. Even if you get somewhat below market value prices, it might not be enough to give you a decent profit for all your work.
I’d be inclined to suggest a different way, but then I am a long-term hold and invest type of guy.
I’d recommend having a master lease of the properties at a low rent. And the right to sublease the properties to renters–which you would do for higher amounts. Then you get the difference between the two amounts. I’d also structure it so that you have the right to buy the properties during a long period of time, such as 5 or 7 years. This would be an option to purchase. You purchase if wish. You sell the options on the individual properties to other people if you wish. You buy with conventional financing if you wish, or with some owner-assisted financing if you have the negotiated into the deal. If you have been running the properties for several years and paying her regularly, she will be more confident in loaning you part or possibly all of the purchase price.
Good InvestingRon Starr**