Anyone here currently controlling a rental property with a master lease and an option to buy?
I was contacted by someone about a month back looking to to sell 4 buildings outright to me, I did not have the funds available to do anything about it so I passed the info along to someone that was looking to get into rentals. Well the person did not end up buying as he changed his focus area. A month later the same person emailed me in response to an ad I have on Craigslist looking for SFH houses on lease options that I was planning to sublease to tenant buyers. I responded back that I did not have cash to go forward with a purchase but would be interested in controlling them for a few years with a master lease and having an option to purchase them later on when I have my ducks in a row. She wants to talk it over via phone and get the details, I’m hoping this might go though. I would be taking control of 4 properties (9 units) totalling just over $1mil with just ink on paper if all goes according to plan. With the current owner now living out of state I think he’s faced more with an inability to control them rather than a financial need to sell. And in this state property management companies aren’t exactly plentiful for him to help as a prop manager needs a real estate license to operate here so you have to deal with overpriced and probably already overworked realtors that don’t really know how to run properties.
If anyone has an example doc I can sponge off to use for my master lease it would be appreciated. I need something that is a straight lease that controls the whole building and gives me rights to sublease as well as lays out things like me being responsible for placing tenants and maintenance. It cannot be a management contract due to the above mentioned laws.
If you don’t mind forward me it as well… though I am just starting, I find reading contracts does give me some overall knowledge and sometimes I have found clauses or such that I would not have otherwise thought of… Thanks
Ps- I am not a lawyer, I don’t play one on TV, and this does not constitute legal advice. Please consult your attorney on the use of this contract before using it.
If anyone does a million dollar deal with this contract send me $1000…cause I said so. :cool
Ps- Note that I added assignment language to it in the text of it rather that writing it in the blank to make it seem more standard so it doesn’t throw up flags.
If you have downloaded the contract please delete your saved copy and download again, it has been updated and the file name is slightly different now. I had the atty add a section that mentions the security deposits and that they transfer upon signing. Can’t believe I forgot that previously.