Re: Any Other Creative Ideas? - Posted by Jim
Posted by Jim on July 14, 2004 at 15:50:19:
Also, the residence would have to be worth at least 12 million to qualify for a tax deferred 1031 exchange.
Re: Now that’s Creative! - Posted by Eric
Posted by Eric on July 20, 2004 at 13:37:20:
Carlos,
Yes, I do use fee management. Am I making money, yes. Could I make more money with my own management team? Yes.
I have always liked to have fee management take a fall form a lawsuit, fair houseing issue, etc. But, in reality, I’m still on the line.
Possibility, I would do it all different in the future. That is if I were to continue with the apartments.
Here’s a senero I have used. Upon aquisition bring in a heavy hitter property manager from a major city with a CPM credential. Pay them well, provide housing, and give them a percentage of the appreciation of the profit upon the future sale of the community.
I did this last year with stellar results. I bought 83 apartment units in distress for 25K per door. Then a year later sold them for 50K per door. I hired a regional manager retiring from a corproate REIT (not fee management) with a CPM credential and paid him 5% of my equity increase.
Nice… - Posted by ray@lcorn
Posted by ray@lcorn on July 20, 2004 at 16:40:21:
Eric,
Nice deal. Perfect example of spreading the wealth to grow it, and an all around win/win transaction. Thanks for sharing that with us.
I’m curious… which came first, the retiring CPM or the deal? Did you just stumble on to him, or go looking for one with this deal in mind?
ray