The Landlord-Lessee Joint Venture

Beach FanaticLocked

Jan 9, '08 · 7:06 AM8,542

Why not?

The Sheeps own a loverly home in Virgin "Wool" Gorda :floor:

but my ram, Ram, gets his horns in a knot when he doesn't get his NFL football fix (St. Louis RAMS, who else!!). We did not wish to invest additional fleece in more US real estate (the young rams have yet to vacate the original Family Sheephouse :pissed:

). Ram said, "Let's find an Owner who feels the pangs of today's market and offer our assistance!" Off we headed to the computer and type, type type we typed.

We emailed here, called there, put up a blog (ewe, awful), we went to fine homes, on golf courses (Fore!), on the beach ("Surf's Up!), up in high rises ("burp; yellow sicko"), all about SW FL!

We offered to pay (all, part, some, most, any, a little, nothing, everything) of the Panged Owner's household expenses.

For a share of the equity, of course. :yikes:

"No, no, no that won't dew, the Panged Ones said.
"Butt, butt (Ram talking, of course), we will stay for X years"
"NO NO NO NO!!, a gazillion times NO!"

We were ashocked! It appeared to be a square deal, no one gets fleeced, why shouldn't a Panged Owner-Landlord give us some of his goody-goody equity for the Sheeps long term commitment if we offered to pay (all, part, some, most, any, a little, nothing, everything) of the Panged Owner's household expenses (wrong term let me reclearification this - all expenses = monthly mortgage payment, taxes, HOA, insurances, etc)? :angry:

Just when all was forsooken, Ram got a call from a (GASP!) a Real Realtor. (They weren't too shiny-penny on the idea; no commissions maybe?)

"Mr. Panged Mucho Owner would like to talk to you about your blog and his home!"

So we did. And he did. And we did together. And we got some goody-goody equity and he got some Serious Relief and we are all happy as clams, er, sheep in summer hay.

The End

Questions are now taken, the floor is open. :clap:

Edited Jan 9, '08 · 5:16 PM

Replies

Beach Fanatic

Jan 9, '08 · 5:48 PM#27

You hold 'em Shelly I'll go get the waterboard! :lol:

I want answers also.

Beach FanaticAuthor

Jan 9, '08 · 7:48 PM#28

Let me get this straight...some sclub bought an overpriced home he couldn't afford in an incomplete golf course community; you came along and are paying 50% of his $829,000 bank note and expenses for a home valued at $730,000 (and falling every day); your name is not on the deed.

No sclub, could afford, 50% or more, no longer falling, yes.

Who has the responsibility to pay the bank note and expenses monthly? Are you sending him a check every month and trusting he's paying the mortgage/taxes/insurance/HOA on the house?

He does,yes and no

How long has Mr Bear been living in this home and how much was his initial downpayment on the property? How much good-goody equity do you and Mr Bear currently share in the home?

Brand new, 10%, depends on how you value equity (golf club membership is saleable and at what market value?)

Please explain to me what type of risk is involved in this deal? What could be your losses and what events would trigger those losses?
.

Risks are that all parties, collectively or individually, fail to upkeep necessary payments, losses would be any payments that accrue to the reduction in house cost to purchase (assuming that part of the rent is over market and that we ever wished to option the purchase) triggered by foreclosure.

SoWal Insider

Jan 9, '08 · 8:24 PM#29

Brand new, 10%, depends on how you value equity (golf club membership is saleable and at what market value?)

He put $82,900 (10%) down, leaving a $746,100 mortgage on a property now worth $730,000, so currently the equity is -$15K and his $83K has gone to money heaven.

I wouldn't count subsidizing the guy's golfing as part of the "investment."

BTW: Is this place in Florida?

Edited Jan 9, '08 · 8:27 PM

Beach Fanatic

Jan 9, '08 · 8:39 PM#30

It's like punching smoke. And by asking if this is in FL you are assuming that "this" is on Planet Earth.

Edited Jan 9, '08 · 8:40 PM

Beach FanaticAuthor

Jan 9, '08 · 9:12 PM#31

He put $82,900 (10%) down, leaving a $746,100 mortgage on a property now worth $730,000, so currently the equity is -$15K and his $83K has gone to money heaven.

Heaven can wait and it is with this very premise that we see a Long Term Occupant of value.

I wouldn't count subsidizing the guy's golfing as part of the "investment."

Most assuredly, it is a private equity club, memberships have sold for as high as $150,000, Mr. Bear is in at the "stated" net cost of zero (allured by the free membership). One could extrapolate applying elmentary (school) algorithms)and say

$830,000
-125,000
=======
$705,000 True Housing Cost

Mr. Bear has assigned his membership rights (part of the Lease Agreement); Ram has learned to putt with his butt! We enjoy the daylight-ending romps, hoof n hoof, along the cart pathways and golf fairways, nibbling at the Champion Turf, dodging the ever present allicroc

YIKES! :yikes:

and prancing in the sand traps and waste areas, as if we were young sheeps, back at Fleece U, aw, those were the Daze (and Confused). :cool:

BTW: Is this place in Florida?

The Italian Capital of SW FL may I boast! :blink:

Beach FanaticAuthor

Jan 9, '08 · 9:15 PM#32

It's like punching smoke. And by asking if this is in FL you are assuming that "this" is on Planet Earth.

Punch less,
read more.
All evidence
is before
your very grasp
to see
what is real
and not to be.

Beach Fanatic

Jan 9, '08 · 9:32 PM#33

Punch less,
read more.
All evidence
is before
your very grasp
to see
what is real
and not to be.

I don't want to hurt your feelings or anything I am just having some fun. I really do enjoy looking at your posts. Reading would imply some comprehension. You take it well

Beach Lover

Jan 9, '08 · 9:34 PM#34

do sheep eat fish?

SoWal Insider

Jan 9, '08 · 9:48 PM#35

Most assuredly, it is a private equity club, memberships have sold for as high as $150,000, Mr. Bear is in at the "stated" net cost of zero (allured by the free membership). One could extrapolate applying elmentary (school) algorithms)and say

$830,000
-125,000
=======
$705,000 True Housing Cost

The Italian Capital of SW FL may I boast!

Ah, Naples....where every home for sale boasts stainless steel appliances, granite counter tops and a golf club membership.

I guess having the golf membership rolled into the 30-year mortgage and property taxes looks good when one uses elmentary (school) algorithms.

This investment is just perfect.....for the current owner.

.

Edited Jan 9, '08 · 10:38 PM

Beach Fanatic

Jan 9, '08 · 10:20 PM#36

Brand new, 10%, depends on how you value equity (golf club membership is saleable and at what market value?)

Is the membership full or are there still openings available? How many memberships have been resold? Does the troubled developer have any ownership interest in the course and is said developer funding any operating shortfalls? Do you get equity back only if someone else is lining up to buy your membership after all founding memberships are sold? Unless this is a premiere championship venue that has a waiting list for members--good luck getting any equity out of the membership?

Beach Fanatic

Jan 9, '08 · 10:21 PM#37

..., no longer falling, yes.

No longer falling :confused:

Where in Florida have prices stopped falling?

http://www.swfl4u.com/CurrentReport.htm

Edited Jan 9, '08 · 10:33 PM

Beach FanaticAuthor

Jan 10, '08 · 1:41 AM#38

No longer falling Where in Florida have prices stopped falling?

http://www.swfl4u.com/CurrentReport.htm

In our subdivision where Centex has lowered prices of new builds to their pre-boom numbers.

This is a good/bad scenario. It's a closed pricing system with major builders. in high end dvelopments. As demand dictates, prices rise with no real value attached. As prices fall, major builder drops to his pre-boom pricing for new construction. Either way, there is a known up limit and down limit (as long as new homes of the same kind are being built). Knowing the known (knowingly?), we are at pre-boom minimums, if you are looking in our subdivisions, prices are set (within small +/- %). That is, you can buy a "build-to-suit" at or less than existing home sales.

Edited Jan 10, '08 · 1:48 AM

Beach FanaticAuthor

Jan 10, '08 · 1:52 AM#39

Is the membership full or are there still openings available? How many memberships have been resold? Does the troubled developer have any ownership interest in the course and is said developer funding any operating shortfalls? Do you get equity back only if someone else is lining up to buy your membership after all founding memberships are sold? Unless this is a premiere championship venue that has a waiting list for members--good luck getting any equity out of the membership?

Memberships are near full, there are openings but only for residents (at this time). The developer is not troubled, the initial developer was, the new developer is very strong financially. If a membership is sold, it must first be offered to the "club" for a period of time, if they choose not to repurchase (at the closing cost number), then it goes to the open market.

Thank you for the expression of Good Luck but we do not see cashing in our membership equity at anytime in the next 5+ years.

Edited Jan 10, '08 · 1:53 AM

Beach FanaticAuthor

Jan 10, '08 · 2:13 AM#40

Ah, Naples....where every home for sale boasts stainless steel appliances, granite counter tops and a golf club membership.

Who stole the stainless steel? We have white! :pissed:

Every home in Naples has a golf membership? Wait until I tell the Ram. I was hoping someone would come along and point out how st00pid he is. :clap:

I guess having the golf membership rolled into the 30-year mortgage and property taxes looks good when one uses elmentary (school) algorithms.

I suppose, I really don't know what you mean, I , let me try to explain, I thought I, well, er, ok go on....

This investment is just perfect.....for the current owner.

I think your trying to hurt my feelings. I don't think you are being honest at all. I think you try to would poke holes in Swiss Cheese and claim VICTORY when you accomplished one a micron wide.

I don't like you.

I think I will now go snuzzle up in my hot tub, take a swing and a napsy wapsy in my hammock (under the beautiful, bug-free night skies), turn on our lanai TV and cry, in 5.1, with The Phantomn Of The Opera. :cry:

I hope you're happy, Little Missy Troll, all I tried to do was to put forth a very viable alternative that Loverly Landlords and Loverly Lessees could share, to avert their miseries and all live in perfect peace. One that works for us and can work for many, many others. But OH No, YOU have to..wait, Ram calls...

"What?.. Do what?...Flunk..no, Ponk.." <excuse, Ram mumbles when drunk

>

"Plonk the *****?"

Got it.

PLONK

Edited Jan 10, '08 · 2:15 AM

Beach Lover

Jan 10, '08 · 10:26 AM#41

sheep writes to much. go back and listen to your bg's disc you probably don't have any biggie sounds.

SoWal Insider

Jan 10, '08 · 11:40 AM#42

The sheepster has found a perfect place to be in Naples. He speaks plainly when the pool guy screws up. Sheepster, your're going to need O2 up there.

Edited Jan 10, '08 · 12:39 PM

Beach FanaticAuthor

Jan 11, '08 · 2:55 AM#43

The sheepster has found a perfect place to be in Naples. He speaks plainly when the pool guy screws up. Sheepster, your're going to need O2 up there.

It's a dream home, yes, we are very lucky in all respects. Our pool guy, he's from the Land Of Alamo Winners, is a grrl. Loverly young lady who I always leave cookies and either cold milk or a Jarritos.

Beach Fanatic

Jan 11, '08 · 2:49 PM#44

It's a dream home, yes, we are very lucky in all respects. Our pool guy, he's from the Land Of Alamo Winners, is a grrl. Loverly young lady who I always leave cookies and either cold milk or a Jarritos.

Tamarindo? Jamaica?

Beach FanaticAuthor

Aug 15, '08 · 3:22 AM#45

Wishing to update, there are 37 Lessor-Landlord co-joint ventures that we have introduced, with no profit incentive, to this financial reality.

Beach Fanatic

Aug 15, '08 · 8:47 AM#46

Hey Mutton Head, you're getting good advice from the members. NOW TAKE IT
I hope this works on your planet, but not here. The complex nature of your scam, excuse me--I meal deal, is a guarantee that the attorneys will be the only people to make any money.
Sarcasm aside, Shelly, Smilin Joe, and Elgordoboy are knowledgeable and straight forward with their advice. It's good that you have confidence in your abilities, but including myself, you are getting well-intentioned advice from four fairly sophisticated investors/owners. Unless your motives are not good, I suggest you work with the other party to equitably dissolve this arrangement
to avoid the very, very, high probability that this will end ugggggly.

Meow

Aug 15, '08 · 8:52 AM#47

Skeeter...save your angst for something worthwhile. :wave:

Beach Fanatic

Aug 15, '08 · 8:58 AM#48

You're right Miss Kitty--AGAIN!
I just can't help giving my 2 cents when I can see a wreck about to happen!

Beach FanaticAuthor

Aug 15, '08 · 3:53 PM#49

Hey Mutton Head, you're getting good advice from the members. NOW TAKE IT

Sorry to have plucked your sore spot, Skeets, I wasn't aiming for your head, I promise.

I hope this works on your planet, but not here. The complex nature of your scam, excuse me--I meal deal, is a guarantee that the attorneys will be the only people to make any money.[/quote[Quite not, nothing complex at all, Skeets, of course complexity is in the brain of the (least) beholding.

Sarcasm aside, Shelly, Smilin Joe, and Elgordoboy are knowledgeable and straight forward with their advice. It's good that you have confidence in your abilities, but including myself, you are getting well-intentioned advice from four fairly sophisticated investors/owners. Unless your motives are not good, I suggest you work with the other party to equitably dissolve this arrangement
to avoid the very, very, high probability that this will end ugggggly.
No, don't think so, Skeets, all is well I am so impressed that you would take time from your busy day to think about l'il ole TheSheep sarcasm aside, of course.

MOF, Skeets, several members of this fine Forum have emailed with questions, I believe at least two have entered into this equity sharing arrangement, one as a Landlord, another as a Tenant, separate properties. For you see, Skeets, everyone is well served in this arrangements, Skeets, but do as you like, Skeets, no nevermind to me, Skeets, none at all.