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Land Lease

Why buy the building when you can just own the land beneath the building? Doing it this way you can make the owner of the building on your land lease to you. This creates substantial dependable income.

Benefits – you generally don’t have to do much with the building. Any issues they have are their own. So you just collect a check.

Sometimes you can even put a time limit on whoever builds on your land so that in say, 100 years, you get the building on top of your land. 

Quite the multi-generational play!

Buy & Lease Back Agreement

Let’s say you own a building, in addition to owning the company that occupies that building, but then you sell the building to an investor and become the tenant. This earns you a lot of cash and provides the new property owner with reliable rental income.

Considerations: parking, signage, utilities, insurance, ingress/egress, and renewal options!

Is it worth it?
Unless you’re trying to grow into new locations rapidly, this usually isn’t the best long-term play.

My suggestion – Refinance the property and pull out the appreciated value then buy another property.

Master Lease

Let’s say you lease an entire office building containing 10 individual offices.

You can make a profit by leasing out all the smaller offices for a greater sum than your master lease amount. So if your monthly master lease amount is $10,000 and you rent each office for $1,500, then you will make a profit of $5,000.

Building owners like this because it “fills up” their property relatively quickly and gives them less oversight because you essentially become a mini version of the building owner.

A word of caution –  You get one thing wrong (e.g. parking) and you’ll have a lot of trouble filling up your units.

Master Lease

Let’s say you lease an entire office building containing 10 individual offices.

You can make a profit by leasing out all the smaller offices for a greater sum than your master lease amount. So if your monthly master lease amount is $10,000 and you rent each office for $1,500, then you will make a profit of $5,000.

Building owners like this because it “fills up” their property relatively quickly and gives them less oversight because you essentially become a mini version of the building owner.

A word of caution –  You get one thing wrong (e.g. parking) and you’ll have a lot of trouble filling up your units.

Master Lease

Let’s say you lease an entire office building containing 10 individual offices.

You can make a profit by leasing out all the smaller offices for a greater sum than your master lease amount. So if your monthly master lease amount is $10,000 and you rent each office for $1,500, then you will make a profit of $5,000.

Building owners like this because it “fills up” their property relatively quickly and gives them less oversight because you essentially become a mini version of the building owner.

A word of caution –  You get one thing wrong (e.g. parking) and you’ll have a lot of trouble filling up your units.

Avoid Real Estate Scams

Rental Scams

Searching for a new rental home can be daunting and stressful, especially if you are on a tight schedule or looking to rent in a hot market area. Unfortunately, this can make it easy to fall for rental scams. 

By doing careful research and being attentive to red flags, you can avoid becoming the next victim. In this video, we’ve compiled some common red flags and tips to help you avoid becoming a victim of real estate rental scams. 

Looking to rent a home in Phoenix, Arizona? We can help! As part of our streamlined rental application process, we put you in contact directly with the property management to ensure a smooth and transparent rental application process.

Home Buyer Scams

Buying a new home or making a real estate investment can be time-consuming, stressful, and complicated. There’s nothing quite like finding out that the seller has accepted the offer on your new home…and then it’s time to send your down payment. 

But how do you make sure that your down payment goes to the right place?

Watch this video to learn about the most common home buyer scams and how to prevent your exciting home-buying experience from becoming a financial tragedy.

A Lesson from History

Understanding the Sales Agreement

When making any kind of real estate investment, it’s crucial for both parties to have a mutual understanding of the terms of the sale.

Does the person selling the property have the right to sell it?

Always read the fine print.

Even well-intentioned transactions can lead to disappointment if there’s a misunderstanding about what is actually being exchanged or agreed upon. Ensure clarity and avoid potential issues by reviewing all purchase and sale agreement details thoroughly.

Understanding the Sales Agreement

A Lesson from History

When making any kind of real estate investment, it’s crucial for both parties to have a mutual understanding of the terms of the sale.

Does the person selling the property have the right to sell it?

Always read the fine print.

Even well-intentioned transactions can lead to disappointment if there’s a misunderstanding about what is actually being exchanged or agreed upon. Ensure clarity and avoid potential issues by reviewing all purchase and sale agreement details thoroughly.

A Lesson from History

Understanding the Sales Agreement

When making any kind of real estate investment, it’s crucial for both parties to have a mutual understanding of the terms of the sale.

Does the person selling the property have the right to sell it?

Always read the fine print.

Even well-intentioned transactions can lead to disappointment if there’s a misunderstanding about what is actually being exchanged or agreed upon. Ensure clarity and avoid potential issues by reviewing all purchase and sale agreement details thoroughly.

Unique & Unconventional Real Estate Developments

From Courtroom to Court

On the fifth floor of the Supreme Court building, there is a gym with a basketball court, known as “The Highest Court in the Land,” located literally above the Supreme Court’s courtroom.

Unique amenities, such as a basketball court, provide significant value to the lives of the people working in the building while enhancing a property’s appeal and desirability.

Commercial property management for unique amenities can be complex. 

Due to the expected wear and tear, regular inspections are essential to ensure that the basketball court (and the rest of the property) are well-maintained. Safety standards, such as maintaining flooring, lighting, and equipment, must be rigorously upheld to prevent on-site injuries.

With effective property management and a proper understanding of the intricacies of maintaining and managing a property with unique features, the enhanced property value and tenant satisfaction can provide a substantial real estate investment return.

Residential Airplane Parking

“Fly-in communities,” or “airparks” are residential communities designed for aviation enthusiasts, where residents can park their airplanes in their homes. These communities have private runways, allowing residents to take off and land their planes directly from their homes. These homes are built with attached or adjacent hangars, allowing for spacious aircraft storage and maintenance. 

Investment Potential

For real estate investors, airparks can be a lucrative opportunity to tap into a niche market with specific and affluent buyers and tenants who value convenience and exclusivity. The shared interest in aviation fosters a strong sense of community, which enhances the property desirability — driving up the demand and value. 

Before investing in an airpark property, a few considerations include initial costs for purchase or development, ongoing maintenance costs, and ensuring regulations and compliance.

Explore the fly-in airport communities in the US.

Secret Apartment With a View

There is a secret apartment on the third level of the Eiffel Tower. The apartment is located 935 feet (285 meters) above the ground and offers a stunning view of Paris. In contrast to the industrial steel framework of the tower, the apartment was designed to feel comfortable and cozy.

Gustave Eiffel, the engineer behind the Eiffel Tower, received many extravagant offers from people wanting to spend just one night in this exclusive apartment.  His selectiveness in who could stay at the apartment only heightened its fame and desirability.

This is a great example of how building a reputation of exclusivity can increase a property’s value, and when these principles are applied to modern-day rentals, they can drive up leasing rates alongside maximizing your rental income and therefore increase the property value.

Secret Apartment With a View

There is a secret apartment on the third level of the Eiffel Tower. The apartment is located 935 feet (285 meters) above the ground and offers a stunning view of Paris. In contrast to the industrial steel framework of the tower, the apartment was designed to feel comfortable and cozy.

Gustave Eiffel, the engineer behind the Eiffel Tower, received many extravagant offers from people wanting to spend just one night in this exclusive apartment.  His selectiveness in who could stay at the apartment only heightened its fame and desirability.

This is a great example of how building a reputation of exclusivity can increase a property’s value, and when these principles are applied to modern-day rentals, they can drive up leasing rates alongside maximizing your rental income and therefore increase the property value.

Secret Apartment With a View

There is a secret apartment on the third level of the Eiffel Tower. The apartment is located 935 feet (285 meters) above the ground and offers a stunning view of Paris. In contrast to the industrial steel framework of the tower, the apartment was designed to feel comfortable and cozy.

Gustave Eiffel, the engineer behind the Eiffel Tower, received many extravagant offers from people wanting to spend just one night in this exclusive apartment.  His selectiveness in who could stay at the apartment only heightened its fame and desirability.

This is a great example of how building a reputation of exclusivity can increase a property’s value, and when these principles are applied to modern-day rentals, they can drive up leasing rates alongside maximizing your rental income and therefore increase the property value.

Homeowner Traditions (coming soon)

Burning Your Mortgage Papers

Paying off your mortgage is a huge personal and financial milestone that brings a profound sense of financial security. Whether you are a residential homeowner, a property manager, or a real estate investor, achieving this milestone is a testament to your financial stability. 

When you don’t have a monthly mortgage payment, you can allocate those funds toward other investments, savings, home improvements, or maintenance, which can help increase the property value. 

The sense of liberation and pride that comes with making your final mortgage payment has given rise to the tradition of burning mortgage papers. This act symbolizes the end of the mortgage journey and the beginning of true home ownership.

Celebrating True Home Ownership

As property managers, we understand the value of home ownership! 

Being mortgage-free gives homeowners an advantage when dealing with potential buyers or tenants because it allows them to wait for a good offer without the pressure of a mortgage payment. By taking desperation out of the equation, as a mortgage-free homeowner, you can negotiate from a position of financial strength. 

Watch this video to learn about some interesting ways to celebrate that final mortgage payment. 

Important Links

More Real Estate Content

How to Get Clients in Real Estate for Beginners (How I Became a Top 10 Agent)
How to Buy Homes Like the Ultra Wealthy (Buy a second home without selling the first)
The Rise of the Freedomplex (America's Answer to 3 Major Construction Challenges)
Should You Sell or Lease Your Home?
How to Flip a House With No Money
A Property Manager's Guide for How to Inspect a Home

Looking to Rent?

View Our Exclusive Rental Listings in the Phoenix Area

Our Location

3020 E Camelback Suite 255
Phoenix, AZ 85016
602.441.3492

Last updated on 7/12/2024

More Real Estate Content

How to Get Clients in Real Estate for Beginners (How I Became a Top 10 Agent)
How to Buy Homes Like the Ultra Wealthy (Buy a second home without selling the first)
The Rise of the Freedomplex (America's Answer to 3 Major Construction Challenges)
Should You Sell or Lease Your Home?
How to Flip a House With No Money
A Property Manager's Guide for How to Inspect a Home

Looking to Rent?

View Our Exclusive Rental Listings in the Phoenix Area

Our Location

3020 E Camelback Suite 255
Phoenix, AZ 85016
602.441.3492