All Forum Posts by: Nick Connor

That makes a lot of sense. I don't see the logic of offering a discount only if it is paid on time. For instances, one of my rentals I have the agreement at 850, but if they pay on the 1st its 750. Rent is always 750, but they understand the importance of paying on time.

Plus, I read somewhere on here once say "they don't offer discounts b/c your doctor, dentist, mortgage company, etc doesn't offer you discounts on payments so why should you".

So in that sense, would you take $100 off rent if they paid 4 months up front?

Does anyone give a discount to their renters for paying in advance? I have yet to do this, but when I talk to friends and family that some of my tenants pay me 3 months at a time they always ask me if I give them a discount for that. Which I don't, but I'm curious if anyone does. Also, my current tenant is paying me 4 months up front and asked if I'd give him a "small break'. What's your thoughts?

NC

This is exactly what I was thinking I would have to do know matter what the buyout cost would be. I don't want to give 8K, 6K, 4K, cash up front or whatever it may be.

Here are some of the options I'm considering, but not offering until I hear back from him.

1. Short term buyout: Half profit, plus 2K of original investment.

2. Investor: He finds investor to buy him out plus half profit.

3. Long term buyout: Half profit plus if I sell within next 5 years, he retains 75% of his DP, after 5 years it decrease X% per year until the 10 year mark. After 10 years nothing.

4. We sell. Not ideal and probably the worst option.

First off thanks to all that have replied to this post. I understand that having an OA is important whenever dealing with a partnership. I have worked on an OA for us, but being two years into the partnership it turned out to be a lot harder than I thought it would. We were/are, depending on what comes out of this, best friends for a long time. We had laid out our goals on the table before we ever started investing. He knew I wanted a career and I knew he was short term. Looking back at it now, that should've been my "ahh ha" moment to develop an OA, but I never would've guessed it come down to this. I hope this doesn't ruin our friendship and I attend not to let that happen, but I also don't want to own a property that will ruin myself or my marriage with my wife. Consider lesson learned here.

Our involvement in this property is soo messed in here I don't even no where to begin. From the start we were doomed to fail, and I'm sure I've made some posts about this years ago, but with a little hard work, dedication, and diligence we were able to make this into a highly profitable situation using the 2% rule. Not to mention our ROI is around 35%, I'd like to think that is a win for us on our first property.

He really wants to sell, and to his credit I understand why. It's the only way we'll be able to make this fair for both parties. But me being the stubborn one or realistic however you want to put it, the money just won't make sense to sell. The area is up and coming, but we're talking years and years away. We'd never be able to get this house to appraise for what we have invested and we'd make way more money renting then we'd ever make selling right now. We would need the appraisal to comeback around 56K just to break even, this includes us getting our original 12k invested back. With all the foreclosures in MI, especially DT Grand Rapids that would be a stretch. During the 4 years of ownership 3 houses within 200ft radius have went under, our neighbors twice. These are the kind of comps we are looking at.

To be truthful, I never wanted this property in the first place. We viewed a week before the auction and then purchased it for 5K over our bottome line which was 15K. Just 25% over our budget...but like I said we were able to make it work. Since then, I've done nothing but adore this property b/c it has provided extra income and that was exactly what I was looking and still am looking for.

But enough of me and my emotions right now ;) I haven't thought about another investor and that is a great idea. I think that would be something I will tell my partner as an option. If he wants to go that route I have no problem with that at all.

And to answer the other question, YES he could force a sale if he wanted. I don't think it will come to that, but he does have the final say due to some unfortunate circumstances.

This is kind of a complicated ordeal. We never finished our OA so we aren't bound to a contract at all. He proposed he wanted half the profits to this point plus his down payment, which was half (6K). I'd agree to profits, but not with down payment.

Please correct me if I'm wrong or if I just have my head in an emotional state, but I don't see how any of these options would be fair for me.

The way that I see it is we both made an agreement on a long term investment, 20 years to be exact and he decided this isn't for him. Just like any investment out there, ie 401k, cd's, just to name a few, you have to pay a penalty if you wan't to pull your money out early. I don't know what this penalty would be, but I do feel it should be expected.
Plus, I'd be taking on all the risks associated with the property from this point and with this being an older house, anything could go...

Hello,

I was wondering if someone could give me an unbiased opinion on my current situation. My business partner and I invested on a duplex together a couple years ago and all the sudden he decides he wants out. He asked me if I want to sell but with the current ROI and monthly profits we are making I think it would be unwise, so leaving me only one option to buy him out.

What would you consider a good/fair buyout for the situation listed below;

Purchase Price: 20K
Loan: 45K
Downpayment: 12K
Profits up to this point: 5K (joint savings)
loan term: 20 year (mind you its an arm and will adjust after next year pending we/I can get it adjusted to fixed)
years left on loan: 16 years

Thanks in advance and let me know if you need more info. I trade to be as vague as possible so I wouldn't influence any opinions

There are several avenues to explore when becoming a stager, it just depends on what your model is going to be. My wife is currently trying to kick off her staging business and we have entertained the idea of renting vs buying pieces of furniture.

After doing much research in our area, we've decided that a combination of both is essential when starting out, simply b/c we don't have the capital nor the funds to purchase multiple pieces and the rental costs aren't too bad. We also started to contact local furniture owners in the area with the strategy of "free promotion".

They would supply their furniture for little to no cost and they could set displays on the furniture from whom supplied it, we like to use the word "showcase" b/c it grabs their attention immediately. We also have the realtors provide two different prices on the house, w/ furniture and w/o furniture. So there's an additional business incentive for the furniture suppliers.

I hope this is of any use to you, but this post might be too old..

Nick

Thanks all for the replies/input on this topic that I'm very interested in learning more about. Like Chris, I too would like to know more about your model Kevin.

I'm currently trying to sell my personal house in hopes to move to a bigger property as my wife and I are getting closer to starting a family.

We had our house on the market for 1year and only resulted in one offer. The obvious reason for this is, we're priced too high, but we're not desperate to sell either so we kept it that way.

With each day creepin' by, the more we want to move, but we're at the mercy of our current home. Rather than selling for peanuts, we've started to entertain the thought of a LC. I understand the principles of it, but I feel like redemption period is 'clear as mud' so to speak.

I appreciate the feedback immensely, so keep it comin'!!

Nick

Hello all, I would like to revitalize this post in hopes of getting some new posts on my q's above and some new knowledge. I've been doing a little reading lately about land contracts and still can't wrap my brain around this. I'm struggling with what exactly has to happen in the case the buyer has to default. Do I, the seller, have to file the paper work with the city for Foreclosure then go throught the redemption period in order get the property back?