<Steve> 82 Report post Posted June 16, 2007 I have started a new relationship with an investor that owns several houses and wants to begin selling them as they become vacant. He wants to get out of the landlord business. I am currently looking at one of his houses now as a possible L/O deal. This investor has a partner on some other real estate investments and has a 12 unit self storage building and a 1,800 square foot house on the same property that has been converted into an office building. The property is on a business street. The units are rented all but (1) the office building just came vacant. He wants to sell the whole property. The price is cheap, but I will need to do some kind of comps. They are willing to do a Lease Option with the property. I would like to pursue this to see how far I can get to make it work and learn something in the proccess. Lease Options really came from commercial properties anyway and we use a simplified technique for residential properties. I think I could find a T/B either on a SLO or CA (CA probably), but I should be able to tweak things, so I will have possession of this commercial property on a lease option with no money down. Any thoughts. . .? Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted June 16, 2007 Sounds interesting Steve! Why not lease the property yourself?You'd have those storage buildings providing a nicecash flow each and every month (less tenant & management-intensive vs. rental property), plus you could use the house/office for your budding Lease Option/CA business!Michael would use it as a brothel, I'm sure.... Share this post Link to post Share on other sites
Doug Pretorius (ON) 9 Report post Posted June 16, 2007 My thoughts exactly! Just think of the big ass completely LEGAL sign you could put out front: "WE BUY HOUSES" or whatever message you're using. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted June 16, 2007 Steve, you're correct about options and lease options first being utilized in the commercial arena, before becoming more mainstream. This property has great potential for cash flow and profit. More so than a CA on a SFR. Of course, the additional profit potential comes with additional effort and risk, if you decide to remain in the middle of the deal. Not a bad thing, but something to factor into the equation. Also, this owner seems to be in need of your assistance. Doing a solid for him will benefit you handsomely over time. Do your due diligence, Steve. Decide what approach you want to pursue. And if need be, don't hesitate to have an attorney assist you with things if the process becomes a bit murky and involved. This deal is somewhat more involved than a simple sandwich lease or CA. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted June 16, 2007 Thanks for the replies guys. Jason a brothel? If the numbers work, I may do a Lease Option to take possession and run it myself and see how it works. Then decide to keep it or sell. I do need to do my due diligence as MC mentioned. I want to keep it simple. Self Storage units seem low maintenance and I will have to check out the office bld. I like the ability to place a "We Buy Houses" type sign (Banner!) on the property! Didn't think of that. This is actually a town/city outside my area that I have been wanting to start marketing for L/Os. Seems to have a lot of activity going on. I spoke with this investor/landlord again and he has a second house coming available, so if he is open to share a little equity, I think I can help him with his properties. Share this post Link to post Share on other sites
