Posted by David Alexander on December 16, 1998 at 16:54:13:
Don’t know the specific details, for doing it on Rental
Property, but, I was told to try and buy the next year
(12 Months, since most leases are that long) for 10 payments and yes get a guarantee from the owner, that your just buying the cash flow.
No matter what the payments are, buying 10 of a 12 payment stream always works out 35% and some change.
David Alexander
Q: Investing in rental income - Posted by John(NH)
Posted by John(NH) on December 16, 1998 at 13:28:00:
An idea I’ve heard and am interested in details
buying rental income streams at a discount. For
instance, if a landlord has a unit that rents at
$500/mo, I could offer to purchase the next 12
months (a total of $6k) for $4800. My concern is
with the details. I’d like an agreement that if
the tenant does not pay the landlord is responsible.
I would also want to record something in case the
landlord does not pay and/or tries to sell the property.
I’m thinking of asking for an option on the property for
80% FMV that’s only ‘triggered’ if the note is in
default. Recording a memorandum of option would
prevent him from selling, and the option gives me an
equity interest without foreclosing. I’m looking for
good/bad thoughts out there, and any other ideas that
might help. Thanks!