All Forum Posts by: Daniel Lioz

 @Cason Acor, from what I can tell there is no cap and they pay Taxes and Insurance. This was transferred through quit claim due to a death in a family and easement is permanent which comes along with the transfer. Termination is possible if both parties agree in writing.

 @Cason Acor Yes, that's exactly what happened.  It is a contract with Lamar for easement that was done over 17 years ago for $10 (yes ten buck) and there is no annual payment, they just pay the taxes on the property.  The contract seems pretty solid, but very one way.  My thought was just to build something quick a dirty on the property to drive up the tax assessment and force Lamar to renegotiate since the property taxes will go up from the current $150/year which might not make it beneficial for them any longer under the old contract.

 @Cason Acor ,

I came upon a property exactly as you described where a large BB company signed an easement contract with the owner for just paying taxes on empty lot and no end date or renewals, is there any way to get out of such contract or force a negotiation if I purchase such property...from your experience that is.

Thank you!

I came across a business listing that was selling a home/real estate along with residential care home business in Texas (it's a residential large house with 9 residence/assisted living. Does anyone have any experience with such as being a passive owner business? The ROI seems to be pretty good from what I can see, but I do not know enough about such business so wanted to get some perspective.

TIA!

Why do you think it takes 15 years? It all depends on CAP rates vs current interest rates vs value add proposition. Obviously you can buy something totally over valued and never see the returns or buy something below current fixed CD return, but that is not investing. All investors always look at the return either through value add (which is why commercial is better then residential for the most part, you can create additional value) or through current long term returns.

@Tony T.

So what ever happened to this deal?  What did you end up doing with it?

I think you are right to some degree, though I am not a big investor as you are describing, thus this is just a guess, but I believe they invest for not just a 5% CAP rate, but more for a IRR which includes Real Estate increase or some version of CAP increases (increase prices, reduce operational expenses, reduce taxes, value adds, etc.)...but my point was more along the lines of just pure advertisement of SS with pure CAP rates, especially when mortgage is required which is now at or above the advertised CAP rates.

Jaron, I don't think I mentioned 9%, I said that CD's and mortgages are catching up to the 5 to 7% CAP rates, thus risk free vs investment that has risk. The item I was referring to was a High Yield APY promo that I saw that was here: https://www.depositaccounts.co... at Axiom Bank, it was like 4% for 24 months.  So a 4% APY risk free vs 5% CAP rate with risk, that's what I meant by catching up. Before 5% CAP was good when Risk free was <1%, but now risk free is catching up....that was my point.

Anyone has a recommendation for a lawyer?

Thank you!

 I saw an intro CD it was like 3 or 5 years if I recall that was pretty high for a max limit of 10K deposit per person here about a month ago.