Posted by Jimmy on October 03, 2008 at 04:46:25:
I have a cluster of houses on one street. have rehabbed some of them. the rest have tenants, and I’ll get to them whn they turn over. another investor has props on same street. he wanted to make a deal for 2-3-4-5-6 of the houses. so we did.
he took 5 of the houses under a lease-option arrangement. he has a triple-net lease over the 5, with all costs of ownership. he also has an option to buy the 5 houses for a price we negotiated–and 2 years to exercise. his plan is to rehab/bump rents and then take the finished-5 to his banker for a take-out loan.
I had more projects going than I really wanted and was very willing to deal some.
and yes, in case anyone wonders, these are in TX. and the deal easily side-steps the L-O rules enacted in 2006.
that’s the essence of the deal. there are finer points, if you are interested. just ask!