The Landlord-Lessee Joint Venture

[JUL]

Anyone going into a financial partnership with a COMPLETE stranger, with no concern for the what-ifs, may want to rethink it. Of course, there is the possibility that things will work, but I think the odds would be against them. Maybe it has nothing to do with their intelligence, but more so with their willingness for risk. I'm sure many "smart" people have lost plenty of money due to taking risks. Some people are willing to risk it all, and start from scratch. Intelligent people can make bad business decisions. How is that for a political answer?

Sounds like Hitllary has some competition!

 

[TheSheep]

Why would any reasonably smart person want to share ownership with someone whom they don't know? There are many potential headaches involved in sharing ownership with a person you do know, and likely even more, when shared with someone you don't know, but you do know is financially strained. What happens when the other owner gets divorced and her husband makes her sell in a down market? What happens when any emergency takes funds out of whatever equity may be in the house? There are way too many problems with this scenerio, and maybe that is the reason why the Realtor wasn't too excited.

Smiles, we covered the Realtors with a fee for services, once that was determined, Realtors quit rolling logs. :shock: We met with the Owner(s), Ram and I have no interest in doing business with a voice on a phone. The rest of the above is covered no diffferently as multiple ownerships are typically arranged (LLC, inside the Lease Agreement, etc). Remember, we are Owners too!

 

[elgordoboy]

Between this one and the other one I was looking for help on, we really could use someone conversant in Cuckoo. I could anyway.

 

[TheSheep]

I own some properties jointly, and have been lucky thus far. They are with people whom I've known for a very long time, and have a good financial history. Even so, you never know when cancer may come along and wipe out someone's finances. I can give you plenty of examples of partnerships that haven't worked.

I like the outside the box thinking, and you get a 10 on effort for this one.

We covered the cancer and death issues with appropriate insurances, this is a business after all The inability to follow through with payments are issues for both Landlord-Owner and Lessee-Owner (foreclosure = "Sheeps hit the road"), these too must be addressed and are.

 

[TheSheep]

Sounds like a slight variation of what use to be called a land contract. They were popular in the late 70's early 80's when interest rates were extremely high.

Yes, righty-right, Bdarg, in many ways it is a throwback with modern day tweaks. It reflects what I consider the problem of the Panged Owner and the Long Term Occupant, how do they partner fairly, each gets his cookies.

The '89 housing market which is being paralleled today (sayeth Mr. Fannie Mae) didn't see the proliferation of the equity sharing techniques being discusssed in this here thread. Bud <spit>.

But they also did not have the severe loss of equity (that truly never existed in the first place) that Pangers today are OH Woe Is Me-ing about. That unrealized equity won't be back for any close term of time, enter the Long Term Occupant-Partner.

 

[TheSheep]

So now that you did it Tell us what you bought

My partner, Mr. Bear, was facing $5,500 per month in HOA, note, taxes, insurances every month. He bought a Centex property, 2770 sft HVAC in a very nice golf neighborhood. Quiet, private, 36 of those sticks with flags, larege developer owned, 1500 acres, 1/3rd developed....and deader than a sheep's hoofnail. Paid $829,000, worth, oh, $730,000 today's market (what there is of one).

Lanai, heated pool 15x30, hot tubby-wubby, Office-den 3Br, 3.5 baths, 2 car grg, top of line interior, golf/lake lot blah blah blah

I pay up to half of the $5,500, everythng over $2,750 goes to lower the price of the home. First option to purchase. 5 year lease, (2) 5 year Options, we split any upside over Sheep Basis in the house and the eventual Sales Price with a $950K "must sell" number. He gets all the write-offs, I am not on either the deed or the note just the lease (which is in the name of Sheep, Ram, Ewe1 and Ewe2, LLC - family business, we sell sweaters. Nylon sweaters. ) so we get an expense write-off, sweater business is good in Moscow! ;-)

 

[TheSheep]

The Sheep is always sheepish about detail.

Ask and ye shall receive ~ Jesusheep

 

[TheSheep]

Financially, wouldn't you be better off just paying rent at the market rate and investing the difference between that and all household expenses?"

Market rent is our minimum payment; potentially, yes, but now we have two places Ram is happy, we can live as long as we want (more or less) and cash out on any over minimum payments we make (especially if the market turns and "runs" again in SW FL.

Ram knows real estate, we are comfortable with what we know.

And fleece, we know fleece.

I know high heels. Obviously. :leaving:

 

[TheSheep]

I like the outside the box thinking, and you get a 10 on effort for this one.

Heh, Ram has a company named after that thinking. For another thread but thank you so kindly, Mr. Smiles, for your compliment.

May I eat your lawn?

 

[elgordoboy]

:rofl:..I have always found your posts amusing..way back when I first started lurking on Sowal even. I do wonder if you are drunk . Do you think that writing off your payment as a business expense is legal?