5 Properties Inherited in Memphis

[Mario Dickson]

Greetings BP Family,

I recently ran across a young lady who inherited 5 properties here in Memphis, TN and about 4 acres of land in a rural part of Mississippi. 3 of the properties are in the South Memphis area (38106) and are in decent condition but could definitely use some updating and minor repair work. The other 2 properties will need major repairs (roof, plumbing, electrical, possible hvac) due to them sitting and being boarded up for some time now and will definitely need more in repairs than what I’m seeing them to be worth. 1 is in the 38108 zip code and the other is in 38111. She’s considering getting the repairs done and selling 2-3 of the properties and holding on the remaining couple as rentals. I’m trying to determine what would be the best course of action for me in this situation and how should I approach it.

Any suggestions and/or advice is appreciated.

Thanks in advance

[Ron Flatt]

I think it is great you met her.  One of the first items is how well do you know her.  Do not go into business with someone you first meet.  If it was someone I first met, I would probably offer to purchase as many as she was willing to sell on an owner finance that would give her a monthly income, possibly I could help her get the ones she wanted to keep in rentable condition if she wanted to be landlord.  If it was someone I knew better, I might agree to a partnership, with an exit date and how we would exit the partnership and get them up and running.  If she has never been a landlord, this might be easiest for her.  The key is you need everything in writing, you are providing a service that will provide her an income and you will profit also.  NOTE:  I like to limit partnerships to 5 years with a defined exit strategy.  The best one I was in, was one of us quoted the price the other had the opportunity to buy or sell at that price.  This is a fair way to separate, think about it, if I quote a price then I am willing to buy or sell, it is the other partners choice, If they quote the price, I have the option of paying the price or selling to them.