Package Deal, My First Deal, and Maybe Out of My League?
I've spent the last few months reading, learning, and marketing to start a wholesaling business. My goal has been to start wholesaling in order to learn the marketing and eventually be able to acquire properties into my own portfolio for long-term holds and also fix-n-flips (love love love construction-related projects, so this is a goal of mine...).
That said, I have talked with many sellers, been hung up on many times and cussed out at least once.... so I figure I'm on the right track as far as making the right offers, etc. Haven't found that truly motivated seller yet.
I spoke with a retired man in a nearby community the other night. (important detail: the nearby community is a distant suburb but not the most popular suburb. I'd say it is steady, but not growing like some of our other areas.) He has a package deal - he wants to clear out his portfolio of 25 properties as a package deal. You could imagine that's a little intimidating for my first deal :-)
Alleged value of the 25 properties is $1,300,000
Seller started his talking at $1,000,000. 100% occupancy and rents bring in $13k per month.
What are your initial thoughts? My initial desire was to find ONE house to wholesale, though I've never been opposed to building a portfolio.
Wondering what my entry and exit strategies could be.
Entry ideas: Owner financing, bank financing (portfolio loan?), private money, partnership, could move on all or negotiate for just a portion of the portfolio
Exit ideas: Sell some, sell all, hold all, sell as turnkey investments
Appreciate your input, and I understand many of the details aren't here. If I desire to move forward, my plan would be to get a list of all 25 properties, run numbers on values, rents, etc, and what a great price would be (goal of 30% immediate equity).
Michael