If you own an apartment building and it is time to retire or you just wish you could sell the apartment complex and move on because you need the money for other things, you might not like the thought of apartment refinancing and you might find your rental property hard to sell because apartment loans are hard to come by right now. If you understand how Master Lease Option arrangements work, you can enjoy the benefits of ownership, but not have the hassles. Because there might be real estate investors that are interested in apartment loans, but aren't able to get them right now, Master Lease Option arrangements allow real estate investors to “test-drive” your property and they can help you cash flow your apartment loans and even help finance your apartment refinancing.
For those that own apartment buildings or apartment complexes, the Master Lease Option arrangements might be the answer you are looking for. Not only can you help beginning real estate investors, but they can help you make your payments, while they enjoy monthly income without breaking out the apartment loan calculator and figuring out they come up short in some areas. Rather than seller financing, this is a way you continue to cash flow your property, but they can help build equity for you because through a master lease agreement, they can rent the apartments for a higher rent than you rent them out for. They get to keep the profit and you get the money to make the payments on your apartment loans.
In a real estate market where apartment loans are hard to get for many investors because they need more than 30% down in many cases, this is a way that you can enjoy more freedom, build equity and use the Master Lease Option techniques to make your payments. Of course, if you have recently sold an apartment building, there are many situations where you can use Master Lease Option agreements to make monthly income before you ever commit to new apartment loans to finance your next purchase. This win-win situation helps sellers that need or want to sell, while allowing real estate investors gain control of the property they want and they can enjoy monthly income while building equity.
No matter which end of the transaction you are on, it is a way to sell an apartment building that you need to, or cash flow the apartment loans you have without refinancing. This is better than seller financing because you still retain ownership rights until the real estate investors decide they are ready to commit or they are able to get the apartment loans they need to purchase the property.
Apartment financing by using Master Lease Option agreements can give you contracts that you are able to syndicate to other real estate investors to get the cash you need, while allowing you to collect a fee for wholesaling the lease contracts. When you need additional cash flow, you can use the Master Lease Option techniques to take care of your needs, whether you are a new real estate investor or an owner of an apartment building that has other priorities.