Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums
Learning and Burning

Land rentals and Fixer uppers.

Recommended Posts

I found a property owner that has all of these going ons. Seller has a property with a two bedroom unit, two studios and the house they live in on one lot. They have right next door a 2.5ac lot with a house on it that is rough but i feel priced right. Also they have vacant lots of 5 ac and 2.5 ac that they have never seen before. The properties are in the desert Southern California. I met with them today and what they want to do is, live in the house they are in now and have me rent out the two bedroom and bungalows. Sell the other lots and rough house. We came up with numbers today for what they want for rents and sale price of lots and others. I feel they are in the range of being marketable. The sellers are flexible and older with a property that needs work a big bath for the most part. I think there is a deal here for getting viable tenants and sale's of the lots. So wondering what all should i consider for this one and if i do write up something on this, how would i write it up to get all properties accounted for? How do i not become a landlord if i do this? I am open to all thoughts on this one, sellers are easy going and are believers of me and what i do, that's a good feeling.

 

 

 

Share this post


Link to post
Share on other sites

For simplicity sake, I would do each property individually and have the agreement be specific to the property.

For example, the "rough" house on the 2.5 acre lot would be set up as a Cooperative Assignment. You're not a landlord. You put the deal together using your know how and correct agreements, market aggressively, find a t/b, wrap it up and move on.

As for the 2BR and the studios, if they just want them to be rented, that's easy enough.

For the two vacant lots, that isn't an easy sale. They would probably be better off giving those to an agency with experience in this arena.

Share this post


Link to post
Share on other sites

Great advise, so i am clear with this one i will do a lease with option to buy for the 2.5 acre fixer upper?

Get a realtor to deal with the land parcels?

And for the main parcel with the owners house on it that they will live in. Then it has a 2 bedroom unit and two studios that they want to rent. Will be meeting with them again on Saturday and want to get my ducks lined up accordingly. What agreement will i need for this part? They want me to manage the rentals. How would i draw this part up?

Share this post


Link to post
Share on other sites

I do not have a specific agreement for rentals. But an easy way to make it legal would be to sign a traditional rental agreement between you and the homeowners, and then sublet it to the tenants you ultimately find. As for managing the property, I don't have a specific agreement for this since I don't do property management. I'm not a licensed Agent and that is a requirement in every state that I am aware of.

Share this post


Link to post
Share on other sites

I was not able to meet as planned but i am ok with it to give me more time. So the main parcel and it being a rental not sure that i can make this work. I would draw up a rental agreement with permission to sublease the available units? So i would then find renters and be a lannnnd looord..Not what i want to do and so again not sure i can make this one work. I am thinking to suggest me helping them find tenants and since they live there they then can land lord. With my advise and suggestions on a per incident basis to help them through the move ins and move outs. Because i do not have a R.E license could i do it this way? I'd like to help here but not at my expense, have to as always cover my arse.

 

Thank again.

Share this post


Link to post
Share on other sites
I would draw up a rental agreement with permission to sublease the available units? So i would then find renters and be a lannnnd looord..

 

No. Let's call it an assignment instead of a sublet. Once assigned you are out of the picture.

If the homeowners want you to manage the property for them, from a strictly legal standpoint you can't since you are not a licensed Realtor.

Share this post


Link to post
Share on other sites

×
×
  • Create New...