Short-Term & Vacation Rental Discussions
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago,
From STR Manager to Buying Client's Property?
Hi, I run an STR management company, and I've come across a pain point for one of my clients (let's call him Partner A): One of is his partners (Partner B) wants to sell the property, but Partner A prefers not to. They received a "low-ball" offer and are in disagreement. I am wondering how I can create a win-win-win, where all parties are satisfied and I can stay on as manager.
BACKGROUND INFO:
Property: An urban condo in a building that allows STR (rare deal). My company also has City approval (hard to attain, it goes with my company, not just the address).
Owner: Ownership and mortgage is under Partner B's name. He must have an additional agreement with Partner A.
Goals: My goal is to stay on as manager, whether with the same owner, or new ownership. Partner B's goal is to exit the deal. Partner A's goal is to stay on as part-owner. He envisions have a new LLC become the owner after Partner B exits.
IDEAS:
1) I or an investor I find, replaces Investor B in the deal. This would satisfy all parties and secure my company's place as a manager. The mortgage would have to be guaranteed by Partner A, ideally with an LLC representing ownership on the deed.
2) Negotiate an "installment sale" of Partner B's interest, where Partner B stays on its own mortgage and pays it via the installment sale proceeds.
Any thoughts? Any other ideas? Please skip over the "risk factors" and jump to what you've seen done.
PS: Not an offer to invest. I won't be disclosing the market or address.