How To Make Money Rezoning Real Estate

One of the best ways to turn a property into a real money maker is to change its use. Meaning if you have a property that is zoned (say a two unit building) for use as a residential/rental property that will mean it is only zoned (allowed) to be owned by one person or corporation, but it can be rented out to two different people. Now what you could do to make a lot of money is to change the property’s use (zoning) into use as a subdivided property (condominium). Which means one person can own one part of the property and another person the other part of the property (if you do this the value of the property will immediately go up in value). However, the problem with re-zoning a property (unless other property is zoned or being re-zoned for the same thing) is it is very hard to do because there is so much legalese, paperwork and bureaucracy. You will go mad. So here is how you get around this problem. You sell each part of the property in an “Equity Sharing Agreement?nbsp; to different people, which means you are selling a legal interest and right of use to one person and a legal interest and right of use to another person. Now what most people would do is sell each interest of the property 50/50 for a two unit property or 25/25/25/25 if it is a four unit property. But here is what I say you should do (two unit example). Sell 40% of the property to one person and the other 40% of the property to the other person. Keep the other 20% of the property for yourself and charge each person $100 (or what ever you can get) a month rental fee forever for the use of the other 10% of their part of the property that they own, with the right that if they default (refuse to pay). on the money, you have the right to sell the property for your percent and their percent for non-payment of what they owe you plus penalty and what it costs you for selling the property. Also have a clause that says if you have to take them to court to get your money that they owe you, they will pay all legal fees plus double the penalty and what they owe you for not paying. Always have a lawyer write up the equity sharing agreement for you and also any contract you have should have a clause that says if any part of the contract is deemed illegal it will not null and void the whole contract. Also, when they sell their equity sharing agreement to someone else you should have the first right of refusal (the right to buy the property at whatever they would sell the property to someone else for [see if you can sell the property for more money]). One more thing. Make sure the equity sharing agreement says that when the person sells their contract to someone else that new person will pay you the $100 as agreed upon.

This Article was brought to you by:

Joshua Fogle

Author of:

(1) How To Make 10% Or More On Your Money

(2) Stock Up On The Stock Market

(3) How To Buy Real Estate With One Hundred Percent Bank Financing

To find me on type in “ZMZ”

Copyright ?2007 Joshua Alan Fogle All Rights Reserved