Posted by ray@lcorn on May 02, 2000 at 22:03:37:
Liz,
My guess is that someone is selling a property with a ground lease. A typical ground lease is when a business builds and owns its building on a piece of ground that is leased from the owner. Like any other stream of cash flow, that lease has VALUE. The seller may be selling the lease, or the ground and the lease, or part of the lease. I would call and see.
ray
Ground Rent - Posted by Liz
Posted by Liz on May 02, 2000 at 11:16:07:
Hello everyone. I would like to know what is Ground Rent Package. It says ground rents for sell.
Thanks so much for all the imformation.
Liz
Re: Ground Rent - Posted by Ron
Posted by Ron on May 03, 2000 at 08:24:34:
Liz,
Ground rents are very common in a few parts of the country – Baltimore is one of them.
As Ray said, the ground is owned by someone other than the homeowner. The homeowner pays rent to the ground rent holder. Typically, the annual ground rent is $90-$120. The homeowner has the option to buy the ground for a legally fixed amount. (The annual ground rent is 6% of the “capitalized value” that you can buy it for. The ground rent holder must sell it to the homeowner at a price no greater than the capitalized value. They are sometimes sold at a discount.)
As for the “Package”: some investors accumulate ground rents. Your seller probably owns a number of ground rents that he would like to sell to another investor.
Ron Guy