Serious investors. Gauging intrerest. Legit, real estate investment
 

Previously there was a thread on this forum comparing everyone's net worth and I was quite shocked to see there are many well-educated, highly intelligent folks here. Hence, would like some thoughts.

A friend of mine owns a D9 condo unit currently tenanted through a long term corporate lease. He is looking to cash out on this receivable and obtain financing up front. He'll novate the tenancy agreement to me (or my company) hence monthly rental payments will go straight to my designated bank account. I have spoken to a lawyer on this and it is fully legal.

Any thoughts from folks out there in the investing industry? Is this something you would do?

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

How long is the tenancy lease agreement?
How much you have to pay him?
Why dun your friend mortgage the condo?

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

You interested?
If interested then PM TS.
If not interested ask so many questions for fark?

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

Novation is a tripartite agreement. This means that corporate tenant is signatory too and agrees to pay direct to your account. 1) Unlikely they will agree; and 2) unlikely corporate tenancy agreement have such long lease terms without break options; 3) non performance of your friend as landlord, for example having home foreclosed means the future income stream is gone, bad deal. 4) don't see any motivation from landlord to do this, unless very cash strapped. Red flag. In summary- very bad deal

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

We are all bankers lah!

Hi Miss Parrot.

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

ts asking for my opinion and does your pussy get itchy.

"empty vessel makes the most noise"

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

Do you want to re sell again this agreement? Or you are just asking for advice?

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

I am assuming that he is the owner of the Condo. There is something like this called factoring and you woould be getting around 70% of the rental due for said period. You pay him up front for 70% of the amount recieved, he gets 30% less,

The issue is this if any deal is to good to be true it usually is. The question then becomes the issue of the deal and the paperwork. There are no friends when deals are involved and it behooves one to check every detail before entering one.

1. Tenancy breaks tennancy , what then the cost to you. ?

2. Tennnacy deposit who holds it ?

3. Maintanence and upkeep , if agreement novates to you, then you are responsible, are there any hidden issues.

4. Has he mortgaged the property ? Do remember that if he defaults on the property loan , then the bank has first rights on everything and that should I believe include the rental from point of default.

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

Did ts really ask for your opinion? Which pussy of yours read that?

I know your pussy is empty now, you need something big to shaft it in :rolleyes:

Re: Serious investors. Gauging intrerest. Legit, real estate investment
 

ladyboy spotted :eek:

You come here ask this type of question? This forum is more suitable for questions like wat lube to use n your threesome experience

And you actually said payment go to your designated account? U got company n ask such questions n say such things . Wahlan..... And your writing is unclear

You're in luck for I am here to reply.
Ignore all other posts if u only got time to read one post

Wat you're doing is simply buying a property with tenancy la. Very common..
Just make sure property price n tenancy is reasonable lo

In the past, ppl buy several properties n use rentals to pay mortgages. Sometimes they even make some extra from rentals. Don't need to top up to pay bank. So if deal iz Good, ask yourself why your fren need to sell.

Rentals even from company isn't permanent. expatriates sure have break clause la. So if you're willing to rent at 2k when market rental is 3k , then no worries as long as the area is good n yr place fully furnished n u don't take mortgage

And seldom ppl buy property in companys name. You say such a thing, it makes me wonder ..... And of cos pay to yr account la. Then?? Change to 10 cents coin n leave bag In yr house. U got money to buy d9 property n straightforward things u don't know. Hmmmm...
_______
Exchange points u also don't know meh

It is a 3 year corporate lease. So the upfront amount would be for a discount on the total 3 years.

Condo is already mortgaged. Too bad SG does not have a concept of secondary mortgage like US

Novated contract would mean that the original rights and obligations under my friend would be passed on to me. There will be a separate contract signed.

Only break option is a diplomacy clause as per standard contract.

But you raise a very good point on 3). He may not pay his mortgage which results in bank foreclosure. But what happens to the tenant then? Will tenant get kicked ouT

Good point on item 4

No idea what you are saying at all.