5/16/2019

New Housing Partnership

-Change the relationship from tenant/ landlord, to partners in a business. The “landlord” is the investing partner and majority owner (due to money already invested). The “tenant” is the managing partner who gains ownership/ equity over time through time investment and their monthly rent payment.

-Managing Partner (MP) pays the Investing Partner (IP) a monthly lump sum to cover; ownership buy in (calculated by amortization schedule similar to normal procedures when buying a house, negotiable), taxes, insurance (still need separate renters insurance), utilities, trash, landscaping, cleaning, minor repair savings (10% rule), major repair savings (10% rule), management fee (10% rule, or maybe hourly rate?)

-Preferably IP pays all expenses to offset income, through tax deductions, that is designated for repair savings.

-MP does lose ability to deduct mortgage, but doesn’t have to pay closing costs, or hold liability for the property.

-Flexibility in arrangements for positive credit impacts (reporting payments, having utilities in MP name, etc) 

-No deposit ( pay for quality inspection instead?), but if expenses exceed repair savings, have to come up with difference out of pocket.

-Instead of credit check, we have a meeting together with a fiduciary financial advisor.

-IP reserves the right to use lump sum payments as business revenue (don’t need to hold in escrow)

-Flexibility in splitting into two monthly payments to match pay day.

-Provide tools to DIY property management, or provide easy access services to do the job right at a good price.

-Including unique discounts on appliances, and the friends and family rate for my personal labor.

-Provide unique opportunities to turn DIY skills into paid work through V&V business (ties into getting the job done right at a good price for other MPs)

-Leverage this man power to create “Neighborhood Stewards” program

-Use adjusting $20/ $10 split? (18/12, 15/15, then they become master)

-End goal is to create business for MP

-IP helps in the pursuit of any passions that the MP can put together a solid plan for

-Maybe hold a regular MP meeting?

-When MP is ready to move, we use repair savings and accrued equity to get house back to like new condition. 

-Remaining repair funds get converted into principal only payment (might have to consider keeping portion of major repair fund).

-Equity can be paid out in cash for normal closing costs a bank would charge (IP might be able to pay that cash for a cheaper fee).

-MP can opt to leave equity stake in place and take over management and split profits with IP (all negotiable).

-MP might be allowed to continue making payments towards ownership stake.

Good Neighbor Acquisition Program (GNA)

-Find the houses that are falling behind on maintenance.

-Talk to tenants, owners, and neighbors to learn about the situation.

-The end goal is to make sure that no house in the neighborhood falls below a standard level of human decency.

-Use Neighborhood Steward Program (NSP) to supply initial “Good Neighbor” labor (maybe limit to 2 hrs)

-Use this time to get a feel for what this person needs to get on track with a minimum standard of maintenance.

-Use DIY guides to empower neighbor, offer access to quality services leveraging NSP

-Find a way to defer partial payments to apply towards future first right to purchase property, or payment from settled closing costs if sold to someone else.

-Offer friends and family rate for personal labor and other perks I offer my own tenants.

-Create new unique services to combat modern issues.

-Elderly loneliness, especially in older men

-Basic education services

-Transportation

-Child care

-Health care, especially mental