patrick.net

IF the above house is offered for sale at $3,000,000, then . . .

Per Patrick's rule a “safe” rental rate is about “15 times the annual rent equals the property value.” If I pay, for instance, $3,000 per month in rent, or $36,000 per year, that suggests that the house is “worth 15 times” that annual rental suggests a “value” of $440,000. With housing prices artificially high just now, I am offering, subject to negotiations and a signed lease, to value your for-sale house, priced at $3,000,000, the same $3,000 monthly rental – thus suggesting your house is not going to sell for $3,000,000, but is worth, today, $440,000. That would seem a very drastic plunge in value. I would not expect someone to easily accept such a painful reduction in value for your home but that is the amount of pain I think you will have to accept as Obama deliberately has stolen the value of your home. IF, IF, IF, however, you can somehow make do with the $3,000 rent for 10 years, I firmly believe the massive coming inflation will make your house “worth” $6,000,000 when my lease expires and you can then sell at a huge profit.

That’s my plan. My plan suggests that you need to accept a 85% reduction from your offering price of $3,000,000 to $440,000, but subject to your house being kept in your ownership by lease, no matter how painfully, for those 10 years and that the massive inflation will give you the gift of a unexpected profit of $3,440,000 over losing your house in foreclosure after some long period of no income from an empty house.

That is one ugly house!