Sometimes you need partners to get deals done in this business. Travis and I talk to people almost daily that want to get involved with real estate but do not have the resources to do it, especially as lending gets tighter. Last year I wrote an article about using partners and how I see many partnerships created for the wrong reasons and of course how those partnerships end in disaster. Well this month I want to stress the importance of partnerships for the right reasons and HOW to do it. Specifically we are going to be talking about credit partners and if this is done incorrectly it could be considered illegal.
By Kevin Amolsch
This tends to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.
There seems to be some buzz around Master Lease Options (MLO) right now. Quite honestly the buzz is coming from people that don't know what they are doing and have never done one. I have personally made over 20 offers using this strategy and have successfully completed three. I still have all three properties today. Three is not a lot but it is enough to understand the strategy and how to use it.