Oppurtunity for me

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From: Rasputin .


hi guys , i know you all think i was never going to do it, but i am reaaly close now!!!

I jsut heard through the grapevine of an oppurtunity to buy an IP that hasa 30yr Guarenteed rental and return of about 8% . i got the name of the person to contact and wil lsee him this week,

Apparently from the little i know so far, it is to be some sort of Private School built using houses as classromms and such. The Church behind this opputrunity dont hav ethe moneyt avaialble to build a new school and so are hoping to get investors to build the palcve then rent it out for the next 20 yrs (they dont expect use oif it after that) then simply put roads down between the classrooms/ houses and sell the lot!!

When i meet the admministrator behind this, what questions should i be asking and what shoudl i be wary of.....

Thanks guys
 
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Reply: 1
From: Michael G


Hi,

Nothing is ever guaranteed, what you can get is a return for a level of risk. But most things can be broken.

Tenants can break leases.

Business can break leases.

eg if an entity runs out of money easier to get rid of them and find something else that will pay.

I guess the biggest question that would be on my mind is;

Will there be a trust set up to hold the funds for the cost of all that future infrastructure (roads, sewer, street lights, etc).

How will the buildings be valued? as a shell or as a fully fitted house?

this would then lead to the question of 8% of what?

8% of a $80k shell or 8% of a $150k home?

Can they secure a fixed 30yr loan term?, that would be handy :)

What happens if 5yrs down the track they want to break the lease?, what compensation can you claim? (hey is this church is big get caveats on their churches and community halls, some collateral there)

Regards
Michael


On 7/21/01 8:20:00 PM, Rasputin . wrote:
>hi guys , i know you all think
>i was never going to do it,
>but i am reaaly close now!!!
>
>I jsut heard through the
>grapevine of an oppurtunity to
>buy an IP that hasa 30yr
>Guarenteed rental and return
>of about 8% . i got the name
>of the person to contact and
>wil lsee him this week,
>
>Apparently from the little i
>know so far, it is to be some
>sort of Private School built
>using houses as classromms and
>such. The Church behind this
>opputrunity dont hav ethe
>moneyt avaialble to build a
>new school and so are hoping
>to get investors to build the
>palcve then rent it out for
>the next 20 yrs (they dont
>expect use oif it after that)
>then simply put roads down
>between the classrooms/ houses
>and sell the lot!!
>
>When i meet the admministrator
>behind this, what questions
>should i be asking and what
>shoudl i be wary of.....
>
>Thanks guys
 
Last edited by a moderator:
Reply: 2
From: Jeremy Laws


Make sure there is a ratchet clause, not just guaranteeing rent of 8% for 30 years - I would offer you that on ANY property I sold. Huge win for the seller....
 
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