HFP 0 Report post Posted December 27, 2012 As I am reading through the NI manual about talking to sellers, it mentions that we say to them that we make the rent payments directly to them, not the T/B. It also mentions that we collect the rent from the T/B, therefore they won't have any rent collections problems. How can we say this if we don't yet know what kind of deal we may have (ie. sandwich LO or assignment)?If we do an assignment, the above dialogue will not be true because we will be out of the deal. I don't want to be misleading, so is there something that I'm missing here? I appreciate any clarification. Thank you! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 27, 2012 Chad, but you should know the type of deal you are offering to the seller before you make any promises. If you are approaching the homeowner with a CA in mind, then of course you couldn't offer the same benefits to the homeowner as if you were offering a sandwich lease. Share this post Link to post Share on other sites
HFP 0 Report post Posted December 28, 2012 How would I determine what type of deal to offer? What scenario/ numbers would have me think sandwich LO vs. an assignment and vice versa? Is it: if there is little to no equity = assignment vs. having equity = sandwich LO or assignment? Thank you! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 28, 2012 It's all in the numbers. If you are in the deal long term, as in a sandwich lease, there is greater profit potential as well as greater risk. Do the numbers justify the risk to reward ratio? Is there cash flow each month. Is there a back end profit for you when the option is exercised? Are you prepared financially and emotionally to be a landlord and deal with potential vacancies and problem tenants? All of these factor into your approach. Share this post Link to post Share on other sites
pilot76180 51 Report post Posted December 28, 2012 Chad, starting off, to make life and the learning curve a lot easier, just focus on CA's for now, and don't worry about a SLO till you have a number of CA's under the belt. Share this post Link to post Share on other sites
HFP 0 Report post Posted December 29, 2012 Michael & John, Thank you for your feedback!I will take your advice and only focus on CAs to get started. Share this post Link to post Share on other sites
