Need help with $100,000,000... Believe it or Not- I need help.

[iAmTrade]

<div class="bbWrapper">Okay, I have been presented with an opportunity. <br /> <br /> Have property worth $ 100,000,000, residential. It is being sold circumstantially, or if circumstances meet what the owner needs. I don&#039;t need to give the full details of it.<br /> ---<br /> <br /> End goal is simple- Find a way to circumvent payment to live on the property, profit from the property and enjoy life on such property.<br /> <br /> Has 20 bedrooms, 13 bathrooms, in one of America&#039;s largest cities. Lovely, LOVELY real-estate. Number of pools, bowling alleys, large garage, home for the housing staff, etc...<br /> <br /> Now the details:<br /> <br /> Property I want sold at $ 100,000,000. I can not afford it presently. Nor can many people in America, or on earth.<br /> <br /> I want to start a fund to &quot;buy&quot; the property, run by no one else but myself.<br /> <br /> In this fund, I want to offer the property to people, for &quot;rent.&quot; I am thinking 12 parties/people to rent this out a month. This would give them 1-2 bedrooms to use, (with 1 bedroom &quot;free&quot; for myself to use).<br /> <br /> This would allow them to also use all the other amenities of the mansion, pools, kitchens, living rooms etc...<br /> <br /> The mortgage would range at 380,000-400,000$ a month with real estate taxes etc. <br /> 12 parties at a rental rate of $50,000 a month is $ 600,000 a month. <br /> That leaves $ 200,000- for the fund (myself)...a month.<br /> I can charge as low as $32,000 a month, I would walk away with $4,000 a month in income for myself, while still maintaining residency at the property, and having no housing expenses what-so-ever. Will &quot;manage&quot; the property, etc., as a part-time little job for myself as I pursue other things.<br /> <br /> I will consider renting it out to less people as long as they pay for the bedrooms that would have otherwise been rented out. If you can really find a buyer for the entire property, I will gladly give you a commissions check.<br /> <br /> ---<br /> What I need help with... CONTACTS. Know anyone who wants to move to a major city on the East Coast?<br /> <br /> Let me rephrase- What is faulty about this plan?<br /> Wasn&#039;t sure where else to post this. I just received the phone call earlier today to go through with it, and if I can make it happen- I&#039;ll be a very happy guy.<br /> <br /> Thanks!</div>

 

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[throttleforward]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503824" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503824" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503824">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Okay, I have been presented with an opportunity.<br /> <br /> Have property worth $ 100,000,000, residential. It is being sold circumstantially, or if circumstances meet what the owner needs. I don&#039;t need to give the full details of it.<br /> ---<br /> <br /> End goal is simple- Find a way to circumvent payment to live on the property, profit from the property and enjoy life on such property.<br /> <br /> Has 20 bedrooms, 13 bathrooms, in one of America&#039;s largest cities. Lovely, LOVELY real-estate. Number of pools, bowling alleys, large garage, home for the housing staff, etc...<br /> <br /> Now the details:<br /> <br /> Property I want sold at $ 100,000,000. I can not afford it presently. Nor can many people in America, or on earth.<br /> <br /> I want to start a fund to &quot;buy&quot; the property, run by no one else but myself.<br /> <br /> In this fund, I want to offer the property to people, for &quot;rent.&quot; I am thinking 12 parties/people to rent this out a month. This would give them 1-2 bedrooms to use, (with 1 bedroom &quot;free&quot; for myself to use).<br /> <br /> This would allow them to also use all the other amenities of the mansion, pools, kitchens, living rooms etc...<br /> <br /> The mortgage would range at 380,000-400,000$ a month with real estate taxes etc.<br /> 12 parties at a rental rate of $50,000 a month is $ 600,000 a month.<br /> That leaves $ 200,000- for the fund (myself)...a month.<br /> I can charge as low as $32,000 a month, I would walk away with $4,000 a month in income for myself, while still maintaining residency at the property, and having no housing expenses what-so-ever. Will &quot;manage&quot; the property, etc., as a part-time little job for myself as I pursue other things.<br /> <br /> I will consider renting it out to less people as long as they pay for the bedrooms that would have otherwise been rented out. If you can really find a buyer for the entire property, I will gladly give you a commissions check.<br /> <br /> ---<br /> What I need help with... CONTACTS. Know anyone who wants to move to a major city on the East Coast?<br /> <br /> Let me rephrase- What is faulty about this plan?<br /> Wasn&#039;t sure where else to post this. I just received the phone call earlier today to go through with it, and if I can make it happen- I&#039;ll be a very happy guy.<br /> <br /> Thanks! </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>You think someone who makes $2m/yr wants to rent 2 bedrooms in a shared house with 11 other roommates?</div>

 

[Ubermensch]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503824" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503824" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503824">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Okay, I have been presented with an opportunity.<br /> <br /> Have property worth $ 100,000,000, residential. It is being sold circumstantially, or if circumstances meet what the owner needs. I don&#039;t need to give the full details of it.<br /> ---<br /> <br /> End goal is simple- Find a way to circumvent payment to live on the property, profit from the property and enjoy life on such property.<br /> <br /> Has 20 bedrooms, 13 bathrooms, in one of America&#039;s largest cities. Lovely, LOVELY real-estate. Number of pools, bowling alleys, large garage, home for the housing staff, etc...<br /> <br /> Now the details:<br /> <br /> Property I want sold at $ 100,000,000. I can not afford it presently. Nor can many people in America, or on earth.<br /> <br /> I want to start a fund to &quot;buy&quot; the property, run by no one else but myself.<br /> <br /> In this fund, I want to offer the property to people, for &quot;rent.&quot; I am thinking 12 parties/people to rent this out a month. This would give them 1-2 bedrooms to use, (with 1 bedroom &quot;free&quot; for myself to use).<br /> <br /> This would allow them to also use all the other amenities of the mansion, pools, kitchens, living rooms etc...<br /> <br /> The mortgage would range at 380,000-400,000$ a month with real estate taxes etc.<br /> 12 parties at a rental rate of $50,000 a month is $ 600,000 a month.<br /> That leaves $ 200,000- for the fund (myself)...a month.<br /> I can charge as low as $32,000 a month, I would walk away with $4,000 a month in income for myself, while still maintaining residency at the property, and having no housing expenses what-so-ever. Will &quot;manage&quot; the property, etc., as a part-time little job for myself as I pursue other things.<br /> <br /> I will consider renting it out to less people as long as they pay for the bedrooms that would have otherwise been rented out. If you can really find a buyer for the entire property, I will gladly give you a commissions check.<br /> <br /> ---<br /> What I need help with... CONTACTS. Know anyone who wants to move to a major city on the East Coast?<br /> <br /> Let me rephrase- What is faulty about this plan?<br /> Wasn&#039;t sure where else to post this. I just received the phone call earlier today to go through with it, and if I can make it happen- I&#039;ll be a very happy guy.<br /> <br /> Thanks! </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> Something about this deal doesn&#039;t feel right. This could be due to faulty interpretation on my part, and may have nothing to do with the soundness of your plan.<br /> <br /> That said, if someone brought a deal like this to me, I&#039;d ignore it and continue to focus on what&#039;s already making me money right now. <br /> <br /> How much do you plan to make with this plan?</div>

 

[Deleted35442]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503824" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503824" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503824">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Okay, I have been presented with an opportunity.<br /> <br /> Have property worth $ 100,000,000, residential. It is being sold circumstantially, or if circumstances meet what the owner needs. I don&#039;t need to give the full details of it.<br /> ---<br /> <br /> End goal is simple- Find a way to circumvent payment to live on the property, profit from the property and enjoy life on such property.<br /> <br /> Has 20 bedrooms, 13 bathrooms, in one of America&#039;s largest cities. Lovely, LOVELY real-estate. Number of pools, bowling alleys, large garage, home for the housing staff, etc...<br /> <br /> Now the details:<br /> <br /> Property I want sold at $ 100,000,000. I can not afford it presently. Nor can many people in America, or on earth.<br /> <br /> I want to start a fund to &quot;buy&quot; the property, run by no one else but myself.<br /> <br /> In this fund, I want to offer the property to people, for &quot;rent.&quot; I am thinking 12 parties/people to rent this out a month. This would give them 1-2 bedrooms to use, (with 1 bedroom &quot;free&quot; for myself to use).<br /> <br /> This would allow them to also use all the other amenities of the mansion, pools, kitchens, living rooms etc...<br /> <br /> The mortgage would range at 380,000-400,000$ a month with real estate taxes etc.<br /> 12 parties at a rental rate of $50,000 a month is $ 600,000 a month.<br /> That leaves $ 200,000- for the fund (myself)...a month.<br /> I can charge as low as $32,000 a month, I would walk away with $4,000 a month in income for myself, while still maintaining residency at the property, and having no housing expenses what-so-ever. Will &quot;manage&quot; the property, etc., as a part-time little job for myself as I pursue other things.<br /> <br /> I will consider renting it out to less people as long as they pay for the bedrooms that would have otherwise been rented out. If you can really find a buyer for the entire property, I will gladly give you a commissions check.<br /> <br /> ---<br /> What I need help with... CONTACTS. Know anyone who wants to move to a major city on the East Coast?<br /> <br /> Let me rephrase- What is faulty about this plan?<br /> Wasn&#039;t sure where else to post this. I just received the phone call earlier today to go through with it, and if I can make it happen- I&#039;ll be a very happy guy.<br /> <br /> Thanks! </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>$50,000 a month to rent a room in a mansion with other people? What people in what world do this? I could buy a mansion by the end of the year in a place like this. I could lease an entire mansion to myself for $10k a month. And why do I sense you have anxieties about disclosing the city it&#039;s in? I&#039;m in NYC, how about you? Sounds like NYC. I have plenty of contacts you&#039;d want to speak to but why would they be interested in this?</div>

 

[Ubermensch]

<div class="bbWrapper"><blockquote data-attributes="member: 35442" data-quote="Cyriex" data-source="post: 503841" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503841" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503841">Cyriex said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> $50,000 a month to rent a room in a mansion with other people? What people in what world do this? I could buy a mansion by the end of the year in a place like this. I could lease an entire mansion to myself for $10k a month. And why do I sense you have anxieties about disclosing the city it&#039;s in? I&#039;m in NYC, how about you? Sounds like NYC. I have plenty of contacts you&#039;d want to speak to but why would they be interested in this? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> The way you put it makes it sound really dumb.</div>

 

[Leo Hendrix]

<div class="bbWrapper">Sounds good bud, but you should help out others more on the forum before asking for anything in return.<br /> <br /> Checkout <a href="https://www.thefastlaneforum.com/community/members/2348/" class="username" data-xf-init="member-tooltip" data-user-id="2348" data-username="@CashFlowDepot">@CashFlowDepot</a> for more strategies related to real estate, I&#039;ve already seen some very interesting ones from a brief look at his website.(Think Cashflow is male)<br /> <br /> There&#039;s others into real Estate here...use the search tool and PM them, I&#039;m trying to remember one TMF user here who added me on linkedin, seems very experienced and licensed in the Real Estate game. I&#039;ll post here if I remember of actually I will check my inbox.</div>

 

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[Leo Hendrix]

<div class="bbWrapper">Try <a href="https://www.thefastlaneforum.com/community/members/32506/" class="username" data-xf-init="member-tooltip" data-user-id="32506" data-username="@MKHB">@MKHB</a></div>

 

[Andrewski]

<div class="bbWrapper">No one will pay that kind of money to rent a room. Only way I see this working is if the property is near some tourist attractions. Advertise the crap out of it and rent each room for 1k/night. Now you have a large range of potential customers. 1k x 20 rooms x 30 days = 600k<br /> <br /> But then you have to hire staff for advertising, bookings etc. plus you&#039;ll have vacancies.</div>

 

[Fox]

<div class="bbWrapper">Start a website with a reverse auction to win the house. Launch viral campaign about the house and the competition. Sell house for $100m. <br /> <br /> <br /> <br /> <span style="font-size: 9px">Have in the small print that you come with the house. </span></div>

 

[Veloce Grey]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503824" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503824" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503824">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> Let me rephrase- What is faulty about this plan?<br /> <br /> Thanks! </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> Well the obvious one is you&#039;re massively misjudging how much people value their privacy. $50k a month for a room or two sharing the place with 12 other people/families? It&#039;s like you&#039;re stuck between being the worlds most expensive backpacker hostel or worst serviced hotel.</div>

 

[AgainstAllOdds]

<div class="bbWrapper"><a href="http://time.com/money/3585583/worlds-most-expensive-houses/" target="_blank" class="link link--external" rel="noopener">http://time.com/money/3585583/worlds-most-expensive-houses/</a><br /> <br /> #10 on the most expensive houses in the world is valued at $100MM. It&#039;s doubtful the place is worth that much.<br /> <br /> Furthermore, people that wealthy don&#039;t want to live with other people. Even if you get Bill Gates, Warren Buffett, and Elon Musk in the same house ... what percent of the wealthy will sacrifice their ability to have their own home in exchange for the privilege of spending $50k a month on a roommate situation?<br /> <br /> You have to find people without families, that are ultra-rich, and willing to blow money on a roommate situation ... probability of you finding 12 parties like that is next to none.</div>

 

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[Duane]

<div class="bbWrapper">I&#039;m sorry, but I don&#039;t believe this. As <a href="https://www.thefastlaneforum.com/community/members/28319/" class="username" data-xf-init="member-tooltip" data-user-id="28319" data-username="@AgainstAllOdds">@AgainstAllOdds</a> says, the top 10 most expensive house is valued at $100 mill and it has 60 bedrooms. Why is yours worth 100 mill and only has 20 beds?</div>

 

[theag]

<div class="bbWrapper"><script class="js-extraPhrases" type="application/json"> { "lightbox_close": "Close", "lightbox_next": "Next", "lightbox_previous": "Previous", "lightbox_error": "The requested content cannot be loaded. Please try again later.", "lightbox_start_slideshow": "Start slideshow", "lightbox_stop_slideshow": "Stop slideshow", "lightbox_full_screen": "Full screen", "lightbox_thumbnails": "Thumbnails", "lightbox_download": "Download", "lightbox_share": "Share", "lightbox_zoom": "Zoom", "lightbox_new_window": "New window", "lightbox_toggle_sidebar": "Toggle sidebar" } </script> <div class="bbImageWrapper js-lbImage" title="nigeria-spam-seemikedraw-comics-1063024.jpeg" data-src="/community/proxy.php?image=http%3A%2F%2Fimg0.joyreactor.com%2Fpics%2Fpost%2Fnigeria-spam-seemikedraw-comics-1063024.jpeg&amp;hash=917aaee2d263b759342b0141b4bada37" data-lb-sidebar-href="" data-lb-caption-extra-html="" data-single-image="1"> <img src="/community/proxy.php?image=http%3A%2F%2Fimg0.joyreactor.com%2Fpics%2Fpost%2Fnigeria-spam-seemikedraw-comics-1063024.jpeg&amp;hash=917aaee2d263b759342b0141b4bada37" data-url="http://img0.joyreactor.com/pics/post/nigeria-spam-seemikedraw-comics-1063024.jpeg" class="bbImage" data-zoom-target="1" style="" alt="nigeria-spam-seemikedraw-comics-1063024.jpeg" title="" width="" height="" loading="lazy" /> </div></div>

 

[Andy Black]

<div class="bbWrapper"><blockquote data-attributes="member: 9009" data-quote="theag" data-source="post: 503866" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503866" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503866">theag said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> <div class="bbImageWrapper js-lbImage" title="nigeria-spam-seemikedraw-comics-1063024.jpeg" data-src="/community/proxy.php?image=http%3A%2F%2Fimg0.joyreactor.com%2Fpics%2Fpost%2Fnigeria-spam-seemikedraw-comics-1063024.jpeg&amp;hash=917aaee2d263b759342b0141b4bada37" data-lb-sidebar-href="" data-lb-caption-extra-html="" data-single-image="1"> <img src="/community/proxy.php?image=http%3A%2F%2Fimg0.joyreactor.com%2Fpics%2Fpost%2Fnigeria-spam-seemikedraw-comics-1063024.jpeg&amp;hash=917aaee2d263b759342b0141b4bada37" data-url="http://img0.joyreactor.com/pics/post/nigeria-spam-seemikedraw-comics-1063024.jpeg" class="bbImage" data-zoom-target="1" style="" alt="nigeria-spam-seemikedraw-comics-1063024.jpeg" title="" width="" height="" loading="lazy" /> </div> </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>I&#039;ve no idea what the thread&#039;s about. I love this though!!! ^^^</div>

 

[croman]

<div class="bbWrapper">Judging from your well laid out plan...this house was an inheritance?</div>

 

[iAmTrade]

<div class="bbWrapper">I don&#039;t believe I presented this correctly.<br /> <br /> I&#039;m not dumb to believe something like this is easily* possible, but I&#039;m also ambitious enough to want to try it out.<br /> <br /> Property is in NY <a href="https://www.thefastlaneforum.com/community/members/35442/" class="username" data-xf-init="member-tooltip" data-user-id="35442" data-username="@Cyriex">@Cyriex</a> you&#039;re right. Its the Gatsby Mansion on King&#039;s Point. The only people who would want to live there is if they themselves thought they would otherwise never get a chance to live in a place like this if it were not circumstantially available only with the position of it being rentable per room.<a href="https://www.thefastlaneforum.com/community/attachments/1-webp.11161/" target="_blank"><img src="https://www.thefastlaneforum.com/community/data/attachments/7/7791-4dc755182cd9bf434ed6f889dfc96c6f.jpg?hash=Zy4hx7_G7L" class="bbImage " style="" alt="1.webp" title="1.webp" width="300" height="200" loading="lazy" /></a> <a href="https://www.thefastlaneforum.com/community/attachments/2-webp.11162/" target="_blank"><img src="https://www.thefastlaneforum.com/community/data/attachments/7/7792-30945fae21f1732ca693b35ba306797a.jpg?hash=of4JwNqw0W" class="bbImage " style="" alt="2.webp" title="2.webp" width="300" height="200" loading="lazy" /></a><br /> <br /> It wasn&#039;t a genuine offer. There is that notion that those people who can afford it would not want roomates etc,?<br /> <br /> BUT... and this is the real reason I presented this idea-<br /> <br /> Why, is something like this not possible? Is there not a desire for some people who only make around 2-5M a year to want to live in a mansion worth 100M? By only setting aside a regular 20% of their income to have it?<br /> <br /> Less fortunate people (most of the USA) spends <b>20% IF NOT MORE</b> of their monthly income to rent out a home or own a not-so-good one.<br /> <br /> If someone can have a X$ USD home in NJ (my current residence), does it not work for myself to rent out rooms in the home to- in some sense alleviate the costs of myself living there to the point where it can be profitable and in turn live expense free?<br /> <br /> Have a place with 15 bedrooms near a college. 1 room= 700$ a month. 14 rentable rooms, = 9800$ in income. After the mortgage and taxes I&#039;m left with 8,000$ a month.<br /> <br /> ---<br /> The math STILL works does it not? For highly-valued properties? The people currently renting the place would in my humble opinion, NEVER BE ABLE to live in the 15 bedroom home they are renting out.<br /> <br /> Why does the math not work for highly-valued properties? Or...better to ask...why have people not tried what I am mentioning?<br /> <br /> Take 15 bedrooms at 700$... for a house...add a few zeros...<br /> 15 bedrooms at 7,000$ a month... per bedroom= X.<br /> X is ABOVE the price to own such said property. Such said property is not multi-residentially zoned. Such said property is just a very large home or mansion or whatever you want to call it.<br /> <br /> If someone can do it with college students and profit, why can&#039;t someone do it with the affluent and wealthy? And still profit?<br /> <br /> This thread was just a way to ask a question- as to why you or others believe this will not work for property in the tens of millions of dollars?<br /> <br /> Guess I see some answers- who in their right mind would rent a place for soo much $...but if people do it for 700$ and they make 30k a year... can&#039;t someone choose to spend 7,000k or 50k if they make 300,000$ or 3,000,000 a year?</div>

 

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[MJ DeMarco]

<div class="bbWrapper">The market for this might actually be millionaire entrepreneurs who want to live as billionaires... and actually live with other entrepreneurs who are in the same boat. If I was single and in a growth stage of business, I could see shacking up with 20 other entrepreneurs and this experience potentially being worth it.</div>

 

[throttleforward]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503910" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503910" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503910">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> If someone can do it with college students and profit, why can&#039;t someone do it with the affluent and wealthy? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote>A major part of sales is understanding your target demographic. College students are vastly different from affluent/wealthy individuals, with different needs, desires, etc. It&#039;s not about math, it&#039;s about psychology and sales.<br /> <br /> Edit: I see this as a much stronger possibilty if you &quot;apartmentize&quot; the place, with independent bathrooms and bedrooms for each &quot;unit.&quot; My grandma lived in such a mansion for decades.</div>

 

[iAmTrade]

<div class="bbWrapper"><blockquote data-attributes="member: 1" data-quote="MJ DeMarco" data-source="post: 503915" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503915" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503915">MJ DeMarco said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> The market for this might actually be millionaire entrepreneurs who want to live as billionaires... and actually live with other entrepreneurs who are in the same boat. If I was single and in a growth stage of business, I could see shacking up with 20 other entrepreneurs and this experience potentially being worth it. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> That is exactly who I was thinking would be the target demographic for this.<br /> <br /> <blockquote data-attributes="member: 3011" data-quote="throttleforward" data-source="post: 503916" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503916" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503916">throttleforward said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> A major part of sales is understanding your target demographic. College students are vastly different from affluent/wealthy individuals, with different needs, desires, etc. It&#039;s not about math, it&#039;s about psychology and sales.<br /> <br /> Edit: I see this as a much stronger possibilty if you &quot;apartmentize&quot; the place, with independent bathrooms and bedrooms for each &quot;unit.&quot; My grandma lived in such a mansion for decades. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote> Yes they do, and yes they have different needs and desires, I wasn&#039;t thinking of the psychology entirely BUT I was thinking- people are people, wanting more than they can afford.<br /> <br /> Someone making 30k a year spends 700 a month to have a roof. Someone making 3M would gladly spend 30k a month. <br /> <br /> It is just something I feel, if no one is trying- should try. Maybe I will.</div>

 

[jon.a]

<div class="bbWrapper">I don&#039;t see how you&#039;re going to get this financed? Or, do you think the owners will just give a nobody a master lease?</div>

 

[iAmTrade]

<div class="bbWrapper"><blockquote data-attributes="member: 12219" data-quote="jon.a" data-source="post: 503920" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503920" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503920">jon.a said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> I don&#039;t see how you&#039;re going to get this financed? Or, do you think the owners will just give a nobody a master lease? </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> If I wanted it (to live there) -right now- ...I would choose not to take ownership.<br /> The current owner is losing a lot of money on the property just because it is sitting there.<br /> Present a form of income to the owner- find such people to rent out the rooms, and have them sign on the dotted line.<br /> Have a contract in place where I would be the one &quot;managing&quot; the property for the benefit of living on-site, free from expenses - PLUS earn some income from such task. I would manage it myself to begin with.<br /> <br /> Done. Found housing, live rent free, earn income.<br /> <br /> This shouldn&#039;t just work for small residences. It should, in my opinion, *can, work on residences of such large stature.<br /> <br /> In fact, you probably know it does* work for some large scale apartment complexes. They have someone onsite, take care of the billing/collections/maintenance etc. and live on the property rent free.<br /> <br /> ---<br /> If I wanted it (to live there) -a few months from now*** then I would choose to own it.<br /> <br /> How? Take security deposits from- people who would rent it- use it as a down payment- have these tenants on a contract for a minimum of 4-5 years (the length is unusual for a residence (as this is not commercial property) but this is a unusual system I&#039;m trying to figure out, no)? Have a clause in the contract with the owner/bank to allow such transaction to be based upon the credit of the tenants and their contractual staying period. Present to them how they won&#039;t sell the house for another 5 years anyways statistically- and might as well make it profitable and see how it works out?<br /> <br /> Much more to go into it- but those are the simplicities. No need for complications.<br /> <br /> ----<br /> Realistically- with the general mentality society as positioned us in, myself to own a $100,000,000 home, at this stage in my life...I wouldn&#039;t be able to scratch the surface of paying the real estate taxes on it.<br /> <br /> BUT with a different mentality- a different way of approaching this- the way I want to position myself- I think it is possible- for myself to live where I could presently only dream to live.<br /> <br /> - More or less, I&#039;m looking for things/questions that are unexpected that I am not seeing/something that I presently can&#039;t circumvent.</div>

 

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[Duane]

<div class="bbWrapper">If I somehow was able to purchase this, I would look into it being a daily rental kind of thing and try to increase the amount of bedrooms in it. I doubt you&#039;d make this work trying to rent 20 rooms out monthly, your mortgage makes it damn near impossible. Your safest option if you could get this thing would be to rent out rooms/night for a high value and charge for the activities that are on the property. <br /> <br /> But honestly, if you&#039;re looking to purchase a large home with 20 bedrooms to rent out to people and live for free and you actually have experience to be able to manage these kinds of things. Why not just get a 20 bedroom or whatever apartment in a decent area for a few mill and rent those apartments out monthly? You don&#039;t have to make 12k a day to pay for the place and you can cash flow nicely.</div>

 

[MJ DeMarco]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503926" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503926" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503926">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> live rent free, earn income. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> You realize that the upkeep and maintenance costs on this place would likely be about $200K/mo? That isn&#039;t even accounting the mortgage or lease. You would be running a hotel. There would be no kicking back and &quot;earning income&quot; -- this would a full scale RE operation.</div>

 

[iAmTrade]

<div class="bbWrapper"><blockquote data-attributes="member: 33123" data-quote="Duane" data-source="post: 503928" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503928" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503928">Duane said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> If I somehow was able to purchase this, I would look into it being a daily rental kind of thing and try to increase the amount of bedrooms in it. I doubt you&#039;d make this work trying to rent 20 rooms out monthly, your mortgage makes it damn near impossible. Your safest option if you could get this thing would be to rent out rooms/night for a high value and charge for the activities that are on the property.<br /> <br /> But honestly, if you&#039;re looking to purchase a large home with 20 bedrooms to rent out to people and live for free and you actually have experience to be able to manage these kinds of things. Why not just get a 20 bedroom or whatever apartment in a decent area for a few mill and rent those apartments out monthly? You don&#039;t have to make 12k a day to pay for the place and you can cash flow nicely. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> Yes, I was thinking weddings, parties, affluent-business meetings. I&#039;m already on the- own a home and rent it out-train.<br /> <br /> But I want to give Millionaires, the ability to live like Billionaires- as MJ stated above. (While I&#039;m at it, I&#039;d love the experience as well).<br /> <br /> I say rent out 20 rooms- When I spoke to the banker, they said 400,000 would be the high-end of the monthly payment. For all I care, I can rent it out to 1 person (who wouldn&#039;t need me, since he can just buy it)....but I can rent it out to 8 people, who would still, otherwise likely never be able to live in a home like this unless they rented at the 50k a month rate for 2 bedrooms each. I won&#039;t make a profit over a few grand a month, and that is fine with me. <br /> <br /> End goal- is to live on property I would otherwise not afford, without paying out of pocket.<br /> Better end goal- is the above PLUS to profit a few grand.<br /> Best end goal- profit 100-200k a month.<br /> <br /> <br /> I&#039;m just presenting my rational, to everyone here if they want to try it on properties perhaps not in the tens of millions of dollars range. But also looking for &quot;AH HAH!!!&quot; moments from people here that would get me closer to making this deal a reality.</div>

 

[throttleforward]

<div class="bbWrapper"><blockquote data-attributes="member: 1" data-quote="MJ DeMarco" data-source="post: 503930" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503930" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503930">MJ DeMarco said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> this would a full scale RE operation </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote> Wait - that sounds like work! Next idea...</div>

 

[iAmTrade]

<div class="bbWrapper"><blockquote data-attributes="member: 1" data-quote="MJ DeMarco" data-source="post: 503930" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503930" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503930">MJ DeMarco said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> You realize that the upkeep and maintenance costs on this place would likely be about $200K/mo? That isn&#039;t even accounting the mortgage or lease. You would be running a hotel. There would be no kicking back and &quot;earning income&quot; -- this would a full scale RE operation. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> I didn&#039;t look through everything in regards to maintenance and clearly didn&#039;t include that in my price per room calculation. From what I gathered just moments ago for the property size, 40-50k$ a month would suffice. Thanks on the tip-out to look into it.<br /> <br /> Definitely need to.</div>

 

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[JustKris]

<div class="bbWrapper">What&#039;s NOT faulty about this plan? Here are just a few red flags:<br /> <br /> 1. Qualified applicants. You&#039;d need people with an income of 150k a month. Obviously since you&#039;re near the city, there are plenty of hedge fund guys who have that kind of money. But I can&#039;t see anyone with that kind of scratch wanting to spend 50k a month on rent to be a roommate in a &quot;party mansion&quot;.<br /> <br /> 2. Location. I could find 5 friends and live in a baller mansion in the Hollywood Hills for maybe 5k each. Why on earth would I spend ten times as much for the same lifestyle in Long Island, even if the mansion is gorgeous?<br /> <br /> 3. Valuation. Just because they list the mansion at 100MM, doesn&#039;t mean it&#039;s worth that much.<br /> <br /> From the NY Post (<a href="http://nypost.com/2015/09/14/live-like-the-great-gatsby-in-100-million-long-island-castle/" target="_blank" class="link link--external" rel="noopener">http://nypost.com/2015/09/14/live-like-the-great-gatsby-in-100-million-long-island-castle/</a>) ---<br /> <br /> &quot;The current owners bought the property two years ago for $15.85 million.&quot;<br /> <br /> LOL. It&#039;s 6x more valuable now because...math.<br /> <br /> 4. Why would I sign a 5 year lease on a residential rental? To lock in the low, low price of 50k a month? That would just remind me I&#039;m throwing away THREE MILLION DOLLARS to live with a dozen roommates.<br /> <br /> 5. Like MJ said, you are seriously underestimating the taxes, upkeep, and work on your part to keep something like this going.</div>

 

[MJ DeMarco]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503940" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503940" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503940">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> I didn&#039;t look through everything in regards to maintenance and clearly didn&#039;t include that in my price per room calculation. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> Reminds me of guys who buy Lamborghinis because they suddenly can afford the $1,400/mo car payment while living at home--- and then forget the insurance is $1K/mo with $350 oil changes. <br /> <br /> Numbers do not lie. If you don&#039;t look at them, your mind will fill the void with fairy tales and pipe dreams.</div>

 

[AgainstAllOdds]

<div class="bbWrapper"><blockquote data-attributes="member: 1" data-quote="MJ DeMarco" data-source="post: 503915" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503915" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503915">MJ DeMarco said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> The market for this might actually be millionaire entrepreneurs who want to live as billionaires... and actually live with other entrepreneurs who are in the same boat. If I was single and in a growth stage of business, I could see shacking up with 20 other entrepreneurs and this experience potentially being worth it. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> That exists. It&#039;s in Silicon Valley, and it&#039;s for a fraction of the price.<br /> <br /> For example, I stayed with a friend who&#039;s in a $3.5MM house. 9 people total in the house. Average company valuation of people living there at $5MM. He&#039;s paying $1,200 a month to share a small bedroom. So for $2,400, he can have his own bedroom/bathroom (studies show that physical proximity to people make you closer and more trusted; do you really need more?). On top of that, he can walk down one block, and step into an $8MM startup house. A block further, a $4MM hacker house. A block further he has Stanford where he can recruit anyone, etc.<br /> <br /> Access to all the top talent in the world. Costs as cheap as $1,200 a month. Human capital value a lot higher than paying $50k a month to live in the Gatsby house.</div>

 

[AgainstAllOdds]

<div class="bbWrapper"><blockquote data-attributes="member: 32534" data-quote="iAmTrade" data-source="post: 503926" class="bbCodeBlock bbCodeBlock--expandable bbCodeBlock--quote js-expandWatch"> <div class="bbCodeBlock-title"> <a href="/community/goto/post?id=503926" class="bbCodeBlock-sourceJump" rel="nofollow" data-xf-click="attribution" data-content-selector="#post-503926">iAmTrade said:</a> </div> <div class="bbCodeBlock-content"> <div class="bbCodeBlock-expandContent js-expandContent "> The current owner is losing a lot of money on the property just because it is sitting there. </div> <div class="bbCodeBlock-expandLink js-expandLink"><a role="button" tabindex="0">Click to expand...</a></div> </div> </blockquote><br /> By signing on with you he&#039;s losing the opportunity to sell the home at full value. If someone can afford a $100MM piece of real estate, then they can afford to sit on it.</div>