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how to earn money with real estate options_21![]() Navigation: Main page » how to get rich Author: how to earn money with real estate options Four Key Points That Must Be Negotiated in a Master Lease When negotiating the terms of a master lease, use the negotiating techniques, tactics, and strategies that I outline in Chapter 13, and pay special attention to the following four key points: 1. Monthly rental rate: Negotiate a flat monthly rental rate for the entire termof the lease. 2. The term of the lease: Negotiate a long-term (two- to five-year) lease.3. The right to sublet the premises: Negotiate the right to sublease the premisesto a third party. 4. The right to assign the lease: Negotiate an assignment clause in the lease,which allows you to sell the master lease to a third party. Best to Use the LASH Strategy on Small Mismanaged Rental Properties Just as all properties are not option properties, not all properties are LASH property candidates. The LASH strategy works best on small mismanaged rental properties that: 1. Are located in stable, low-crime, moderate-income neighborhoods near large employers, military bases, schools, shopping centers, and healthcare facilities. 2. Have below-market rental rates that can be increased by at least $150 per rental unit once the property turnaround has been completed. 3. Have mismanagement problems that can be quickly and inexpensively corrected by implementing aggressive professional property management practices. 4. Are structurally sound and have deferred maintenance that can be quickly and inexpensively repaired. 5. Can be bought for at least 20 percent below market value on buyer-friendly terms with seller-financed mortgage or deed of trust loans. |
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