Posted by James on February 04, 2001 at 08:12:19:
Bud, thanks for responding to my questions, your right on the money, the property is in the lower value part of town but in a upcoming neighborhood. Alot of propertys being renovated around it. Five minute walk to the beach. In the condition the property is in the rents are probably at maximun right now. Roofs are good but needs paint, garage doors, exterior cosmetics like sinks removed from yard, car on blocks removed, screens etc. I own a restotaiton company and can do this work for about 30% of retail but realize i still need to be paid. His debt service, taxes and insurance is around $1400.00 per month and the gross rents are $2250.00 per month. How could I structure a L/O to make this work. Is it legal to go 5 yrs.? I don’t understand how a pac-trust works. I’m supposed to look at the inside of the units this afternoon and check appliances W/H’s etc. If I offered him $100.00 a month over his expenses and $90-$95,000.00 in 5yrs., how would that sound? I might be just a little excited here, just don’t want to screw-up. Thanks again for responding to my questions, what a wonderful site!