15 November, 2013

1-1-9-6 value creation, the forms of value: lease

you lease = you rent

Rent what?
A Value there is a market for

so you have a value, asset .... you let someone have it for a fixed amount of time in exchange for a predefined amount of money 

make sure that:

  • you are prepared for unexpected, unpleasant events (think about insurance and papers and shit)
  • the rent is high enough to cover for maintaining, fixing and may be storing the value (a car may be)
  • Over the usable lifetime of that asset, the rate at which you’re going to be able to rent it, and the amount you're going to be able to rent it for, is more than the cost of that asset plus the upkeep.