Updated over 14 years ago on . Most recent reply
Approached by lease purchase buyer
I was recently approached by a company locally here in maine called Mynt Investments. They want to buy any of my plus 5 units via 2-3 year lease purchase (required to buy vs. option to buy). I have a copy of their agreement. I basically set a price that gives me 3x my initial equity investment and indicated i might be interested in only selling my 8 unit (just bought 2 mos ago, great cash flow, but lower income, a bit of a PIA to manage). Bought for 185k ARC, sell 220K) - might be too low, I don't know, but my question is, "what should I be on the look out for? what are some advantages / disadvantage to doing this?"
My initial thought is that it sort of ... puts a 180 on our core plan (acquisition) -- now suddenly I'm selling ... but of course, I do believe the MARKET vs. a cemented time line should dictate selling. (i.e. sell when you can get a great price vs. just becuase you have a 20 year plan), so that objection is sort of mute.
My only REAL concern is that I'm "turning over" an asset that we've worked hard (albeit only 2 months) at turning around. What is the deal falls through 18 months from now .... what am I going to get back? An empty building? A building full or crack dealers?
Any thoughts you have would be, of course, greatly appreciated.