How do i make Money with a Master Lease Option on a Multifamily?

How do i make Money with a Master Lease Option on a Multifamily?

Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes

One of me leads is open to a Master Lease Option on a multifamily deal. How do you property structure a Master Lease Option to be a Win for everyone. The property is a 6 units fully occupied but owner is tired of being a landlord. How will I make money in the deal with a Master Lease Agreement?

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  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Can you bring in new tenants at higher rents without a significant amount of capital expenditure? Is your seller willing to sign a master lease with option to purchase? 

    They might be just trying to dump a management problem on you, so beware. The upside is typically generated when you raise the income then buy the property at a (now discounted) price you'd originally negotiated. 

  • Involved In Real Estate · Rockville, MD · Member since 2012 · 40 posts · 18 votes
    6y

    Thanks for the information, Mr Taylor

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