Holding Strategies Renting With A Buy Option
Renting houses or apartments has always been a great way for realty
investors to show a good return on their investment. However, when
it comes to renting houses to tenants, there’s another potential
method one can use to earn an even greater return. You can do it by
giving a tenant an option to buy the house; if they choose to buy, you
will agree to apply a portion of the rent toward a specified purchase
price. For example, say you rent a house for $950 per month and you
give the tenant the option to buy it within a specified timeYou
agree that if the tenant exercises the option to buy, you will allow $200 per month to be applied toward the purchase price. If the tenant
stays for a period of years he or she will have an incentive to buy
rather than leave and lose the opportunity..
Sometime a piece of real estate requires a change of use to achieve a
greater value. If you have a residential building that isn’t doing well and
the zoning permits the change to office use, check it out. If it’s costeffective
based on the cost of the conversion and the increased income
from off...
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Once again I must use Leonard Kandell as a prime example of brilliant foresight and real estate savvy. Kandell owned land on Central Park South in New York City under a ground lease owned by the operator of a Ritz Carlton Hotel. It was a valuable piece of land in a very strategic spot with a majo...
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Partnerships or joint ventures are excellent vehicles for blending diverse
investing interests into a cohesive business entity. One partner
may put in nothing but money, another may put in both money and
expertise, a third may contribute land. The documentation binding
them together requires careful...
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John Maynard Keynes, arguably the greatest economist of the twentieth century, likened the position of short-term investors in a stock market to that of readers in a newspaper beauty contest (popular in his day). The ostensible task of the readers is to pick the fiv...
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There's something very reductive about the stock market. You can be right for the wrong reasons or wrong for the right reasons, but to the market you're just plain right or wrong. Compare this to the story of the teacher who asks if anyone in the class can name two pronou...
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