If you are tired of handling a bunch of properties and looking to retire or commercial-residential properties are in dire need of repair located in war zones, and the owner wants out, we can lease them with option to buy (group of investors with Motherhealth LLC, wanted to take care of bay area apartments). Please email email@example.com for more info if you want to join the group of investor to take care of apartments or commercial properties in the bay area.
It’s structured this way:
1. Option money, tax free to the lessor (owner).
2. A Master long term lease, 30 years or greater as I recall, where you collect the rent, handle all the maintenance repairs, and you make a monthly payment to the lessor.
Benefits to the lessor:
1. There’s no capital gains due immediately (Lessor – owner), and even the option money is tax free.
2. On his death, due to stepped up basis, there’s little or nor estate tax due.
3. Lessee (Motherhealth) handles all the operational headaches
Benefit for the lessee:
1. You don’t have to go get a mortgage.
2. You can mortgage the leasehold, which might even cover payments such as option money to the lessor.
3. When the lessor dies, usually heirs want the money right away, and you can negotiate a advantageous sales price for yourself, buying out the lease. Heirs are usually motivated sellers.
4. With escalating commercial rents, you benefit from the upside.
5. On the other hand, if things go south, you can give it back to the lessor. The investor I know, who happened to be the lessor in one case, took the lease back (long story), and even made money doing so.