caboarder2001 0 Report post Posted September 29, 2009 OK so I found a guy from my cold calling campaign and he is in a very tough situation. I want to be able to help him, but obviously not if I cannot make $ from it. He has a home listed FSBO for $300,000. He said at that price he is almost under water. His current payment is $1749/mo+160 HOA which equals $1,911, He has a tennant that has been there 5 years that will be moving out October 31st, and she is paying a rent of $1,800 which is consistant with the neighborhood. The comps are $137.60/sq.ft. which makes his property of 1709 sq.ft. $235,158. I thought of listing it for 3 years which at the end of 3 years he will have paid down the loan $13,000. But that is still far away from what he owes and what it would sell for. So then I thought well ill do a strait rent for this guy and be a prop manager. But his tennant of 5 years has been great with not a single late payment, so its "easy" in his eyes, so he doesnt mind land lording. So... What can I do with this? Anything? Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted September 30, 2009 I would not do a SLO for one. CA seems out of the question also. Master Lease seems a good way to handel. If you want to do some management for the deal approach him with the thought of NET RENT. Offer him 85% of what is collected. Just an idea. He has had a good tenant. But with the crash of the housing market good tenants are moving to find better deals. I have one tenant that I am afraid to lose. I never call him. I am even thinking about lowering his rent so he will stay. I also had one that of the 14 months I had them as a tenant they were late 10 of those months and these were friends of mine. (note don't rent to friends). I think a master lease would work. If not then move to flip the rent for a few bucks. Share this post Link to post Share on other sites
caboarder2001 0 Report post Posted September 30, 2009 Master lease is just a lease with no option? So like I sign a 3 year lease, and then I sub lease that out? And as far as flipping it, your saying pay him x and rent it for x+$100/mo ? If so how does that differ from the master lease? Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted September 30, 2009 Master lease is where you lease and then sub lease for the spread. To flip the rent is to find the tenant and assign your agreement to tenant or reverse the lease and assign it to landlord for cancelation of your lease. You just do it for a rental payment or so. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 30, 2009 Corey, other than what Rex said, there isn't much you can do with this property. Given a choice, I would just opt to find this homeowner a new tenant and collect a fee for your services. Half a month's rent, one month's rent. . .whatever you can get. He's losing his tenant in a month. He ought to be motivated. Share this post Link to post Share on other sites
caboarder2001 0 Report post Posted September 30, 2009 Thanks so much for the information guys. Ill try and just find a tennant or flip my lease to a tennant. If not.... On to the next seller Share this post Link to post Share on other sites
