[Ron Steele]

Ron Steele

Hello Jackie and everyone,

I own a few rentals myself but to expedite my cash flow I think it will be wise to get in between some lease, or sandwich lease i think is the term. I like this because it produces cash flow, there is not a capital limitation, no personal guarantees, no financing… I did have a few questions I was hoping some of you guys could address.

What type of neighborhoods do these work best for?
Are these your a-b class properties or are these your working class type properties?

Who is responsible for repairs? Im assuming this is negotiable but I didn’t know if it was an industry standard? If the tenant does not pay am I stuck with paying (like a mortgage payment?) or are there provisions you add in the contract to protect yourself?

Any other thoughts or observations would be greatly appreciated.

[DON WEDE]

DON WEDE

It works for any class of properties. Myself I don’t care for the lower end properties. Do a performance master lease. If you don’t get paid the owner does not get paid. With a performance master lease I always have the owner pay for repairs.

Don Wede

[Ron Steele]

Ron Steele

Mr. Wede,

Thanks for your response… Im not familiar with performance leases…. Is this a standard or is this only for extremely motivated sellers/landlords? Do you have a generic copy? Anybody have any other suggestions

Thanks

[DON WEDE]

DON WEDE

A performance lease is when the occupant tenant pays you pay the landlord/owner. This is all taught at David Tilney’s class. A must attend.
As far as when it is used that is a negotiable point. If you Guarantee payments you should get a healthy cut of the rent.
Don Wede

[Ron Steele]

Ron Steele

Thanks for info. I leave outside of the US for most of the years, so unfortunately attending Mr. Tinley’s class is not an option for me. Does Mr. Tinley have an online class? Are there any other resources that you would recommend?

[DON WEDE]

DON WEDE

David does not have any online classes that I know of. I would contact him and see if he can help you out.
Don Wede