Debbie
01-08-2007, 07:14 PM
Hi Fambly,
I'd like to tell you about the Hughes brothers who are located outside of Chicago area. I met them here in Springfield last Spring when they were speakers for my local Landlord Association. Pretty cool guys! You can find them at www.realestateforprofits.com
Anyway, I received their newsletter today. Their newsletters offers plenty of ideas. But there's two small articles that caught my attention and would like to share them with you.
Management is the Key!
Professor Stephen Hawkins said in his book "The Universe in a Nutshell" that 'energy is always positive'.
How can we apply this thought process to the house business? If you are "out there" in the market place talking to people and being positive, you will run into more opportunity than you can handle.
Recently a friend put me in contact with a burned out landlord who was ready to sell but could not discount the price enough to make the deal work. He had paid full retail for a lot of property that he should have received a discount on when he made the purchase.
After some negotiations, we arrived at an agreement where by I would MANAGE his property for him (with NO management fee) for an option to buy his properties in five years for the same price that he paid!
Why would he do this?
1) It solved his problem
2) He still gets cash flow
3) He still gets the depreciation
4) He still gets the principal reduction on the loans
So, he gives up appreciation but gets to keep the other advantages of ownership. Not bad! This deal could have been structured many other ways too.
The key is in the ability to manage property!
I'd like to tell you about the Hughes brothers who are located outside of Chicago area. I met them here in Springfield last Spring when they were speakers for my local Landlord Association. Pretty cool guys! You can find them at www.realestateforprofits.com
Anyway, I received their newsletter today. Their newsletters offers plenty of ideas. But there's two small articles that caught my attention and would like to share them with you.
Management is the Key!
Professor Stephen Hawkins said in his book "The Universe in a Nutshell" that 'energy is always positive'.
How can we apply this thought process to the house business? If you are "out there" in the market place talking to people and being positive, you will run into more opportunity than you can handle.
Recently a friend put me in contact with a burned out landlord who was ready to sell but could not discount the price enough to make the deal work. He had paid full retail for a lot of property that he should have received a discount on when he made the purchase.
After some negotiations, we arrived at an agreement where by I would MANAGE his property for him (with NO management fee) for an option to buy his properties in five years for the same price that he paid!
Why would he do this?
1) It solved his problem
2) He still gets cash flow
3) He still gets the depreciation
4) He still gets the principal reduction on the loans
So, he gives up appreciation but gets to keep the other advantages of ownership. Not bad! This deal could have been structured many other ways too.
The key is in the ability to manage property!