You must be logged in to reply to this topic.
-
I occasionally answer questions on other real estate investing blogs. There is so much BAD information out there I try to direct people in to the right direction.
An example, an investor was considering buying vacation rentals in a coastal town in Texas. He does not live in Texas, has no knowledge of the market there, and has no contacts there. I doubt that he has even been there. But coastal properties are cheaper in Texas than were he lives so he’s planning to buy one or two by getting a mortgage then renting the houses out as vacation rentals. He’s ready to sign on the dotted line to buy houses there and get mortgages. Big mistake!
I pointed out that instead of buying houses, he should TEST the market by doing a master lease there first. With a master lease, you just lease a house from an owner with the right to sublease. You handle any problems that come up but the owner pays for repairs, taxes, insurance. It is a risk free way to create cash flow. And you don’t need to come up with a big down payment, apply for a loan or pay ridiculous loan fees. At the very least, he needs to visit the area before he makes a decision to do anything.
If the owner likes the way you pay on time, the opportunity to convert to seller financing is possibility too.
There is a way to accomplish your goals in a risk free way. You don’t need to buy houses or get loans. Use the creative real estate investing strategies you learn at CashFlowDepot to make a lot of cash and cash flow but avoid the risks.
Would anybody help me …
I need to know what documents should I use if I have a seller willing to master lease his property to me.What are the best terms should I aim for.
Would appreciate any help :).
Thanks.
Lilia 757-550-5474
[email protected]
You must be logged in to reply to this topic.
