The “benefactors” you’re talking about are the tenants. The owner of the building is an LLC; the owners of the LLC are also the tenants of the building. In this case, the building is a quadplex. There are no additional renters to bring in.
All of the various payments and fees you mentioned? A traditional landlord has all those as well, plus one more: profit. This LLC doesn’t make a profit. Any “profit” it made would come from the tenants, and would be owed back to those same tenants. There is no profit incentive here.
Wait, if the owners of the building are also the tenants of the building, then this is just home ownership with extra steps, which was my very first comment.
Because there is no profit motive if you rent from yourself. Also, you only pay rent. You don’t have put up collateral, down payments etc.
Also you don’t actually own it. When you leave, you’re not selling anything.
The example we have been using clearly stated to the owners of the building were also the tenants of the building. Are you suggesting a completely different example?
I think you better google it for yourself and learn about it, instead of asking questions to strangers and constantly being dissatisfied with the answers.
I mean, something has to own the building and contract with the tenants, and that something can’t have a profit motive without simply becoming a landlord. So, yes, pretty much.
The “benefactors” you’re talking about are the tenants. The owner of the building is an LLC; the owners of the LLC are also the tenants of the building. In this case, the building is a quadplex. There are no additional renters to bring in.
All of the various payments and fees you mentioned? A traditional landlord has all those as well, plus one more: profit. This LLC doesn’t make a profit. Any “profit” it made would come from the tenants, and would be owed back to those same tenants. There is no profit incentive here.
Wait, if the owners of the building are also the tenants of the building, then this is just home ownership with extra steps, which was my very first comment.
For one, you get the benefit of renting. Which is flexibility.
What is the benefit of renting from yourself?
Because there is no profit motive if you rent from yourself. Also, you only pay rent. You don’t have put up collateral, down payments etc. Also you don’t actually own it. When you leave, you’re not selling anything.
The example we have been using clearly stated to the owners of the building were also the tenants of the building. Are you suggesting a completely different example?
I think you better google it for yourself and learn about it, instead of asking questions to strangers and constantly being dissatisfied with the answers.
I am just looking for a comprehensive answer that makes sense. I haven’t read one here so far unfortunately.
That’s why I told you twice(!) to look elsewhere
I mean, something has to own the building and contract with the tenants, and that something can’t have a profit motive without simply becoming a landlord. So, yes, pretty much.