interesting strategy to buy rental properties
I met an investor here who has a unique approach to RE investing. He has very little headache with renters because of this win-win philosophy. He looks for people in his community who have a down payment, need to buy a home but cannot qualify for a loan . He offers them a 25% stake in a multi-family he buys. He puts in his own money for the rest and moves them into one unit in the building. They pay whatever rent is the standard for that unit. They get their share(25%)of revenue from the building later, while doing accounts. This way, the building gets taken care of, automatically .Since they live in a building they own, they keep an eye on the other renters-no surprises, no trashing. One unit (that they occupy ) is permanently rented -no need to pay a property manager .Everyone is happy . This person has several such units he co-owns. Never paid a penny for property management .
Wanted to share
Most Popular Reply
I love creative ideas like this! Very inspiring!