I love offering listeners fantastic benefits, such as some great discounts for products, with new offers coming all the time! You can see a complete list at propertymanagementmastermind.com. For all of these offers, use the discount code “Brad” to secure your discount.
One more announcement before we get started! Our newest product at Property Management Mastermind is the Business Development Toolkit. In 2017, RentWerx organically grew by over 360 homes. In 2018, we’re on pace to grow another 500 homes. And best of all, we’ve done all of this without going out to meet the people and earn the business one door at a time. Tune in to learn more, or check out the toolkit online! If you aren’t completely satisfied with the product, we’ll give you a 100% rebate.
Now, onto today’s episode. In this conversation, I’ll talk to David Tilney, who’s an expert on the fascinating topic of master leasing and has been putting on seminars on the topic for years. David and I will take a deep dive into the concepts behind master leasing, some of the history of it and how he came to apply it to the industry the way he does, and how you can apply it to what you’re doing in the property management world. This conversation will answer a lot of the questions that you might be looking at when you talk to owners who are fearful of everything.
If you’re not familiar with the concept of master leasing, you’ll also learn the basics of what it is! In short, master leasing is when you lease a property from one entity and sub-lease it to another, and take your cut from the middle. It differs from property management in that you’re not working for the owner, and therefore don’t have a fiduciary responsibility to the owner.
David did his first master lease in 1984, when he leased a house for 35 years at a fixed rent and secured his lease with a deed of trust. 10 years later, he was given half the appreciation of the property to remove his lease from the property when it was sold. In 1996, he cancelled all of his agency relationships and leased the properties that he used to manage because he felt he had more control in that process.
In addition to all of this, you’ll also learn about how master leasing can be an entry into the world of property management, as well as some of its other benefits. David will talk about process for business development and finding owners who want to work with him, and why it’s so exciting (and sometimes fun) to be an entrepreneur.
Here’s where you can find David:
Show Notes
[02:40] - Brad takes a moment to introduce David.
[03:36] - David gives us some history of what he’s been doing with master leasing and related seminars.
[05:54] - In master leasing, who’s doing the maintenance, and how is it being paid for?
[08:48] - David mentions that master leasing has been involved in the commercial market forever, and offers some examples.
[11:33] - We learn about what David covers in his master leasing class.
[14:31] - David talks about how long he’s been teaching about master leasing.
[16:48] - Does David find that there’s less adversity in master leasing than there is in traditional property management?
[18:59] - We hear about how David finds homeowners who are willing to lease to him.
[23:57] - David currently has very few units under his umbrella, he reveals, and explains why that’s the case.
[24:43] - Brad circles back to David’s seminars, and David talks about some upcoming seminars. If you want more information on the seminars, you can find out about them on David’s website at this link!
[27:00] - David never has more than one seminar listed at a time, he explains.
[29:42] - If you use the discount code “Brad,” you can get a discount on one of David’s seminars!
[30:55] - Brad offers a quick side story.
[32:02] - Many property managers own rentals themselves, but some don’t and don’t know how to get started, David points out.
Links and Resources:
(619) 988-6708 (Allison DiSarro from Seacoast Commerce Bank)