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
Very interesting approach, thank you for the share
I love creative ideas like this! Very inspiring!
Thank you this is very interesting information
Very interesting! I love it, this is why I love real estate!! My only question is what happens if they stop paying their rent/mortgage (whatever it would be called)? He can't evict them because they are part owners in the property. I guess he would just have to take that up in civil court right?
Cameron Norfleet, Century 21 AllPoints Realty | http://www.CameronNorfleet.com
No -he evicted one of his partners from one of the properties for not paying the rent. He has some agreement drawn up which makes the rental agreement separate from the ownership -not sure how his lawyer drafted it .
@Naseera Mohamed thanks, this approach opens up a new line of thinking.
neat idea thanks!
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