Bill Walston – Understanding Master Lease Options – The Best of the Best Show
My guest today is my friend Bill Walston, and we're talking about master lease options. This is one of the creative buying strategies that Bill uses in his business and has for more than 3 decades.
You have to admit that this is a fascinating concept. The master lease option strategy allows anyone to invest in commercial property with no money down and without ever going to a bank. Even more fascinating is the idea that this strategy works for pretty much any type of property that has units that are leased. A lot of people think the master lease option strategy is complicated, but you're going to learn that just isn't the case.
What types of Property Does this Strategy Work For?
Most of us think of apartment buildings when we think of master lease options and those are certainly at the top of the list. Bill has put somewhere in the neighborhood of 50 properties in his portfolio in the last 4 years (there could be more by the time this is posted).
But there are many other types of properties that will work with master lease options such as:
- Mixed-use commercial
- Storage facilities
- Marinas (I’ll bet that one caught you by surprise)
- And a whole lot more
The great thing about the master lease option strategy is that you can get in and “try before you buy”. You can find out if a particular property will be a good fit in your portfolio. Then at the end of the option period, you can exercise your option and finalize the sale. Here are some of the things we covered in this episode:
- What exactly is a master lease option?
- Why Bill decided to pursue this particular investing strategy
- How he finds these properties
- Websites for finding motivated sellers of multifamily properties
- How to start the buying conversation, and why you are always just a “regular buyer” early in the conversation
- Analyzing a commercial property; how this process is different from SFH
- How much Bill looks for “per door” when analyzing a property
- Skills you need for this investing strategy
- The typical length of an option for apartment buildings
- Deciding whether or not to “exercise the option”; how Bill decides
This is just the tip of the iceberg. If you have ever given any thought to investing in commercial property and specifically using master lease options, you don’t want to miss this episode. Please leave us your comments and questions below.
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Bill Walston is a highly sought-after business and tax strategist and has served families, business owners, and investors. Bill is also a real estate investor, mentor, and coach. He is dedicated to helping real estate investors build, promote, and protect their businesses and live a tax-deductible lifestyle. After successfully building an accounting and tax practice, Bill walked away from it to focus on real estate after deciding the profits were better on the other side of the desk.
Jumping in with both feet he began working on lease options and built the business model which became the base of his real estate investment company. A master investor and teacher, Bill’s precise and easily duplicated systems for building, promoting, and protecting a business have been successfully implemented by his students around the country in competitive markets of all kinds. He believes in freely sharing his expertise and information for the benefit of anyone who is serious about succeeding. His passion is bridging the gap between learning and doing. Bill holds a Bachelor of Science degree in Accounting and Finance and a Master’s Degree in Tax Law.
You can reach out to Bill at BillWalston.com.
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This podcast which was originally published in July 2014 has been updated.
Very helpful and informative
Thank you Bill and Sharon
I am a Commercial real estate newbie looking to invest in a car wash with a MLO
how different is it to calculate “value” ?
Is it unreasonable to negotiate a deal with just a few hundred dollars as a deposit?
Wish me luck I am about to take the leap thanks to you both
Hi April – Bill is the person to ask that question. You can find him at Bill@Billwalston.com.
Good luck on that one.
Very nice interview Sharon! Bill – we need to connect.
Yes you do Ben.