BiggerPockets

Hi, has anyone done an MLO on a apartment building recently?

If so, can you tell me on your experience?

Late last year I was negotiating with a non profit housing provider to do a master lease on a 34 unit apartment project we own and were just completing rehab on. If we had been able to structure a deal with them paying $20K or so deposit with $7500 per month I think the deal would have gotten done. After originally claiming interest at these terms (they came to me with the idea of master lease), they found out that the numbers didn't work out like they had anticipated. To make the numbers work they wanted me to remodel the apartments for institutional housing use, at a cost of $100,000 +.
A master lease may be a good way to obtain control without a large down payment and without qualifying for financing. The leasee should also get a realistic purchase option so that the benefit of the hard work of managing the apartments (appreciation of value) accrues to the leasee, and not the owner.

Mr Shah :
I will send you note with Susan Lassister-Lyon information

She charges not $997.00 but $197.00 MLOM Method

She will also be having a webinar this Thursday on MLOM Method ,fyi

I recently sign up for her information , so I have not yet used her MLOM Method (important )

I have conversed with here on BP and my impression was that she has acquired what I might call, advanced knowledge and seems to be sharp, but was not 100% correct IMO. She or any guru type may have some unique sales pitch to use with a seller and talking them into doing a M/L, but I can't see $997 at all. A master lease is really a pretty simple arrangement and should ba able to be put together by any "advanced" investor. I mean really, it's a lease with the right to sub-let. Take care and use an option to purchase, and address the customary problems of financing/servicing, insurance, taxes, depreciation, maintenance, assignments and deafult. This is not rocket science. Most of what you need is right here on BP! Good luck, Bill