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well it does seem to me that these things are always at resort type areas...and that seems a little scary regarding being able to consistently rent them with long term leases....and they do seem like convertd apt buildings although some are brand new construction...maybe the "new construction" is the conversion construction.

haha :beer: :goofy: :crazed: :crazed: :help: :whistle: :rock:

Hi Jon,
Yes you have it right, and interestingly enough, I was also looking at one in Orlando Florida. They are sort of fancy hotel condos with a few luxury resort amenities that vacationers and retirees want. They handle all the leasing etc. I have seen other deals where the lease back is 10 years...which seems better ..at least they get 10 years worth of rent equity for you. I hadnt thought that the rent they offer you is a fixed amount..that makes sense.

It seems it might be a good idea if I actually wanted to eventually live in the place later..

Thank you, Lisa

I was wondering if anyone has ever done any of those lease-back deals where you buy a condo or something and do a lease back deal for the first 5 years. I am a total newbie, but it APPEARS that its just like having gauranteed renters for the first 5 yrs? Is there some sneaky catch?

Thanks. :beer: :goofy: :D

Great, I would love to hear about your experience with them in Kansas City. Did you buy a 4 plex? did they rent it well? any surprises financially or otherwise?...did you get it brand new and were the building materials sturdy? Did their research on the demographics turn out to be true or just sales propoganda?

Many questions! Lisa

Great! Thank you, I would be interested to hear your opinion of them and what they do.
Best, Lisa

Its good to hear you felt comfortable everywhere. So far I have only heard good things so it would seem a trip is in order!
I am a well travelled person who lived in India and Europe for over a decade. However I have had 3 frightening incidents in Latin countries, especially Mexico, that make me really distrustful of their ability (or desire) to safeguard people. I guess the corruption in Mexico is pretty common knowledge and that seems to set a tone. I was wondering if Costa Rica had this type of feel to it.

Best, Lisa

Hi everyone and thanks for the advice. There are a few things that are different than a few of you rather forcefully suggest.

1) The finance company with the 4Plex is already offerring 6.5 % financing ( not 8%) and my friend who did go for the deal has already closed on that.

2)I was assuming 40% because the building is brand new and they even changed some of the building materials for investors because we wanted stronger more durable products with better warranties.

3)Also these equations don't take into account that rents over the next 20 years will be going up probably at least to $800. There is no rent control, Job growth and population are growing, and other apts in the area are already asking that.

4)Everyone is also pretending that rising equity doesn't exist, which is almost true in many environments, but not the ones I am in.

Apart from these things, however, I am passing on the deal anyway as its still not very good.

I would like the moderator to take a look at how rude the last two people were in this thread and make a comment that it is unneccesary.

If these 2 "gentlemen" were really so sure of their talents as business men, they would have no need to puff themselves up by insulting people.

Sincerely, Lisa

Hi, Thanks for the advice! They are on the web as tradaproperties, I am not allowed to post a website yet, too new.
Best, Lisa

Thanks again Jon and everyone,
I am passing on the deal. I just looked at it from a point of view of what I would end up with in 20 years....I will have probably spent somewhere between $250,000 to 280,000 and would probably end up with a property worth about $650,000 if all goes well.

I compared that with the fact that just $130,000 in a simple Vanguard index fund that is getting 11% a year compounded over 20 years...comes to around a million dollars.

Thanks again for all the advice, its all actually pretty shocking compared to what other people tell you. Best, Lisa

Hi...

The 4 plex is not in California..

Well I came to a conclusion in my own quirky non professional way...it will probably seem silly but here it is:

It seems that if I put $80,000 down and then spent another 200,000 over the course of 20 years for all the stuff that comes up...( the building is brand new with all the warranties on the roof etc etc )

there is a good chance I will end up with a building worth around maybe $650,000 ...that means ( in a very very innacurate way) my money was more than doubled and it took TWENTY YEARS.....thats not very good and I had all those headaches too.

meanwhile in 20 years just $130,000 in a simple Vanguard index fund getting 11% a year and being left alone to compound becomes around a million dollars.

This seems to clarify it for me.....

:beer: time for beer.