Owner wants to stay any innovative ideas to benefit the investor ?
- Thread starter 7DD4
- Start date
Up the rent...ruthless.
It would make sense to establish their motivation for going down this path (death-divorce-debt-equity release-new PPoR being built etc) and their plans going fwd (long or short term tenancy), then look at your options within those responses as to how you will structure the offer
I looked at one of these once before when there were a number about in Perth and thought it may be benefical if its a tenant who wants to sell and obtain built up equity, but also wants the opportunity to reside in the same house and not disrupt the family life (solves some financial problems).
How about an offer to sell at a reduced price, rent and still make money from the property
I looked at one of these once before when there were a number about in Perth and thought it may be benefical if its a tenant who wants to sell and obtain built up equity, but also wants the opportunity to reside in the same house and not disrupt the family life (solves some financial problems).
How about an offer to sell at a reduced price, rent and still make money from the property
I bought an IP in April 2007 from a woman who renovated the place to a very high standard then ran into trouble servicing the debt.
After the sale was completed, she asked to rent back from me at market rate.
It's a good deal for both of us. I keep the rent at market rate and she looks after the place like it's her own home. Which it kind of is.
She's one of my best tenants and I doubt she will move for many years to come.
It's a win win deal and that's more sustainable and more beneficial long term than any deal which provides only short term benefit.
Given I've not had any downtime over the last couple of years, I consider I'm way in front.
If I'd known her intention before submitting my offer I might have structured it differently. Maybe offered a lower price with the security of a longer term lease to give her peace of mind.
After the sale was completed, she asked to rent back from me at market rate.
It's a good deal for both of us. I keep the rent at market rate and she looks after the place like it's her own home. Which it kind of is.
She's one of my best tenants and I doubt she will move for many years to come.
It's a win win deal and that's more sustainable and more beneficial long term than any deal which provides only short term benefit.
Given I've not had any downtime over the last couple of years, I consider I'm way in front.
If I'd known her intention before submitting my offer I might have structured it differently. Maybe offered a lower price with the security of a longer term lease to give her peace of mind.
We did the same many years ago. The one I bought had owners who had got themselves into financial trouble and had to sell before the bank took action.
All went well for the first few years while they still had the balance from the sale but they continued on their spending way and eventually we had trouble getting the rent from them, there was always an excuse.
They did look after the house very well. We never had to do any maintenance, they looked after it as if it was still theirs.
Eventually the marriage got into trouble and they went their seperate ways. I think money was at the bottom of it. She loved shopping and he loved drinking.
Chris
All went well for the first few years while they still had the balance from the sale but they continued on their spending way and eventually we had trouble getting the rent from them, there was always an excuse.
They did look after the house very well. We never had to do any maintenance, they looked after it as if it was still theirs.
Eventually the marriage got into trouble and they went their seperate ways. I think money was at the bottom of it. She loved shopping and he loved drinking.
Chris
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