How it works: The first step in a master leasing contract is to find an owner who is either looking to sell the asset or give up his day-to-day activities. Reasons for an owner to leave or give up the daily operation of a real estate could be that the owners are motivated: hey Peter, I really enjoyed your lessons and videos on youtube. I have just signed up for the Protected program, I hope I will be selected. I currently have some money to invest, but I think instead of any other type of real estate investment, I can start capitalizing from a master-leasing. I want to know where to start my search for these properties. Peter, I love your videos! You`re so informative. I have a question. I have a friend I have known for a few years. He`s got a 4 Plex.
Can I use the master leasing contract for a 4plex? Even the seller is very motivated and asked me if I should buy and find for me a way to do seller financing. He is 93 years old, very alive with his full mind, and has a mortgage with a big advance penalty. He bought the building for 725k in 2007 (in Los Angeles, Ca). It has a balance of 425k. Rents receive the mortgage with a little leftover after the mortgage is paid. He says he`s tired of managing it himself. He wants money to sell. What can I do for money downstairs? A master-leasing? Or something else? Please help me. I would really like to buy this building.
Since the master leasing taker can still increase the value of the asset through add-utility strategies, underwriters are generally entitled to all revaluations and cash flow of the property. Master leasing contracts can move to any level of real estate, but they are more often used in large investments such as apartment complexes, resorts, shopping malls, etc. This is because, with these larger real estate, it can be difficult for potential buyers who need a large amount of capital to buy the property directly, so the master leasing contract removes this investment requirement and opens the land for the buyback option that is often included. Add-value investors can search for non-troubled or unoccupied assets for the acquisition by contacting the current owner to discuss the benefits of a master-leasing. In this situation, the owner is rehabilitated and stabilized his assets and sets monthly payments and has the option to sell the property at a predetermined price at a later date. For the tenant, they will receive a new asset that will probably be made with a discount with a minimum down payment. Do you have only one question, one of these types of homeowners would not prefer to deal with someone who can buy the property at any credit and give them a discount, rather than structuring a master leasing contract that the owner still has until the end of the master-leasing, why would he want to do so if he can go down immediately with a cash buyer at a discounted price? It also has the advantage of not having to put money on the land to use it, which allows tenants with little capital to rent space.