You must be logged in to reply to this topic.
-
Did you know that housing sales are the lowest they have been in decades. Sales are expected to go even lower.
With less buyers, maybe it is time to switch from a buy/fix/sell mode to a landlord mode. There is more demand for rentals than ever before. And rents are going up.
This report shows who is buying
http://realestateconsulting.com/some-facts-regarding-todays-changing-home-buyer/
One of the biggest reason people bought houses in the past were the tax savings. The other was the hope of future equity. But 2008 proved that equity can disappear overnight. In fact, you can be upside down in your mortgage if the market drops like it did in 2008 — so home buyers are nervous about getting in to that situation. Tax savings are usually not worth the itemized deductions.
Here’s an article by the same author on that topic
http://realestateconsulting.com/homeownership-no-longer-tax-savings/
Many people have a buy/fix/sell business to get those big checks. But you can accomplish the same thing… with LESS RISKS… by doing wholesale flips or a highest bidder sale.
A wholesale flip or HBS business is really just a job. If you don’t have any deals coming in that month, you don’t make any money.
The only way to achieve financial freedom is with CASH FLOW which comes in every month even if you are on vacation in Panama or cannot work.
Master Leasing is a way to get that cash flow without buying houses. These are usually short term ( 3-5 years) but it is a good way to get started. Sometimes you can extend the master lease.
Buying Subject-To is a way to buy houses which will cash flow without saving up a down payment or qualifying for a loan.
You could buy with a lease option but at some point that option has to either be exercised or let go… so you could lose a perfectly good cash flow property because it was not structured for a long term hold.
If you do a Highest Bidder Sale for the Highest Down Payment, you can get that chunk of cash for the down payment AND monthly cash flow too.
It is important to monitor how the real estate market is changing in your area. If sales are down, get out of the selling retail mode. If there is a demand for rentals, it is time to get in to the rental business.
Let your market determine which strategies you should use.
Hi Jackie –
I am in a market that has a high rental demand, with virtually low/no supply of inventory, which in turn drives up sale prices.
I am considering the Master lease approach vs. an outright purchase of a 3-4 unit multi-family.
How does one present a Master Lease offer on a property listed for sale on the MLS?
Base on your experience, which targets are more receptive to Master Lease offers?
Which CashFlowDepot home study course, seminar or book, do I focus on to help guide the path to my first Master Lease?
I’m sorry for the delay in answering your question.
It is really better NOT to make master lease offers on listed properties. Work directly with the owner on NON-listed properties. Vacant properties are ideal. An owner who has recently had to deal with an eviction is usually motivated to not be a landlord anymore.
Module 7, Master Leasing, will give you even more insights in to the wonderful world of master leasing
The chances of a listing agent or buyer’s broker actually making the offer for you are slim. They want a SALE so they get a commission. Even if they did present your master lease offer, it would probably quickly be followed by all the agent telling the seller all the reasons why they should not do the deal.
You must be logged in to reply to this topic.
