30 property portfolio & 45 property porfolio

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30 property portfolio & 45 property porfolio

Jordan Murrell
Las Vegas, NV · Member since 2020 · 162 posts · 113 votes

About one year ago I moved to Las Vegas to play professional soccer. Last March our season began and ended due to COVID 19. At first, sitting at home and staying safe was great. Then I realized I was at the mercy of someone else. I worked for someone else and they could cut all income for me and my wife at any time. The fact is, I was disposable. Now, you may be thinking... You play professional soccer. You get paid millions. No. Not the case at all. Typical wages range about $0-$3000 a month for 10 month long contract.

The second week of March I was looking for a way to create income. I read “Rich Dad Poor Dad” and I realized I was looking at it all wrong. A mindset shift. Speaking to others about my new thought process, my old coach introduced me to BiggerPockets. From that moment on, I was hooked. I listened to all the podcasts and read all the books I could get my hands on.

It was September. Not going to lie to you, I had analysis paralysis. My girlfriend at the time, now wife approached me and asked “what are you waiting for?!” You need to purchase a property otherwise you never will. Figure it out along the way.

Had some hiccups purchasing my first rental property. Ended up reading David Greens book “Long Distance Real Estate Investing” and saw my next steps. Identified my market (Memphis), put together a team and put in offers for property that fit my criteria.

Fast forward from October. I now have a couple rental properties and managing a flip. My goal for the next 3 months is to acquire 16 properties.

After networking, lead generation and funneling. There are two investors both looking to offload their portfolio here in Las Vegas. One seller has 30 properties and is moving to another continent for family reasons. The other wants to 1031 exchange into larger commercial properties.

The plan would be to acquire 3-7 properties from each investor. Originally my goal was 16 properties this year but one of the podcasts truly inspired me to make my 1 year goal into a 12 week goal aka “The 12 Week Year.”

This seems like a large task so I have started the “Intention Journal” by Brandon Turner.

How would you complete the transaction of 3-7 properties from each investor?

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Todd Rasmussen
Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
5y

@Jordan Murrell

There is a reason the portfolios are for sale and you purchasing all of them or a large portion is a HUGE convenience to the current owner. Don't underestimate the value you are providing by being willing to assume all of these at once.

Many portfolios are available because aging owner operators have slowly ridden them to the ground. They suck the net proceeds out for personal use and then can't afford a repair or tenant turnover. Then they end up renting to a less desirable tenant, and then they have economic vacancy or more expensive turnovers and the process repeats until they get fed up and sell. That was the case with the portfolio we purchased earlier this year. It can be a hugely profitable opportunity, you just have to go in with your eyes open. Expect lots of tenant turnover and deferred repairs / maintenance if your seller is a tired/fed up owner operator

Keep letting them talk against themselves. Sounds like you are a natural negotiator.

They might be most apprehensive about giving you title on all these properties for low to no money down. If that's the case you can break the portfolio up into a smaller number of properties and buy five now with option to buy so many in a year if all the conditions of your owner's financing are met.

Also make sure you value this deal with the seller using NOI and the cap rate. You can use sales comps to figure your ARV as long as you'd be willing to sell them individually down the road but only talk about this as a commercial investment with your seller. If the portfolio is underperforming you'll build a significant margin into the deal just for that.

Also again, this is a HUGE undertaking. Take a realistic look at what you can/want to be obligated to. Just home inspections is going to cross the 25K mark and that will be spent to decide if you want/can buy them! Partners is a valid solution, but if you need their expertise and money you either have to find dumb money or you'll find yourself diluted to where you'd be better off staying focused on the properties in your market area and tuning your existing business model to make/keep it sustainable.

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  • Aaron W.
    Rental Property Investor · Northern Virginia · Member since 2019 · 793 posts · 620 votes
    5y

    @Jordan Murrell If the properties are all cash flowing and providing the returns you want, why not take them all?  

    You could potentially partner or find investors to help you acquire the properties, so you don't have to necessarily take them all but split them with the other investors/partners. It could potentially be a win-win for everyone.

    If you are insistent on only 3-7 properties per investor, then just ask them and see if they are willing to sell a portion of their portfolio to you. If they agree, then you can just cherry-pick the properties you are interested in.

    Good luck!

    1Reply
  • Timothy Lewis
    Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
    5y

    It seems like you have a great opportunity at your footsteps. Is seller financing an option? I think this will allow you to acquire maybe even more than 7 properties. 

    Best of luck brother!

    0Reply
  • Julie MarquezPro Member
    Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
    5y

    @Jordan Murrell I love your story and your mindset shift. Way to get after it this year! It sounds like you've found yourself some great deals, and I say buy them all. If the numbers work on all the properties, you've got a great problem on your hands. Are they single family or multifamily? Can you purchase them with owner financing? What's the hang up on not buying them all? Could you wholesale the ones your don't want?

    What you might need are partners. If they are a good deal, it should be easy to find people that want to get in on the deals too. BP is a great place to find partners, and we've been looking for NV or AZ investments too. If the numbers work, people will want to help you and maybe you'll have 75 properties in 12 weeks!

    1Reply
  • David Robinson
    Specialist · Huntsville, AL · Member since 2020 · 200 posts · 105 votes
    5y

    Have you done any calculations or anlysis on the properties to see if they fit what you want in your portfolio? Is there an existing property manager, or do you have one already? Will the properties have renters under contract? These are just a few questions to investigate and help in taking next steps.  Financing these properties is a big step, and I work with multiple lenders that can help, feel free to connect with me I will be glad to help out.

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Aaron W.:

    @Jordan Murrell If the properties are all cash flowing and providing the returns you want, why not take them all?  

    You could potentially partner or find investors to help you acquire the properties, so you don't have to necessarily take them all but split them with the other investors/partners. It could potentially be a win-win for everyone.

    If you are insistent on only 3-7 properties per investor, then just ask them and see if they are willing to sell a portion of their portfolio to you. If they agree, then you can just cherry-pick the properties you are interested in.

    Good luck!

    Hi Aj, 

    Thank you for your response. 

    That is a great idea. I guess I thought acquiring 30 & 45 properties at once would be too much but that's just fear talking. Growth comes from those uncomfortable situations. 

    I would need to find some GREAT GREAT partners that would be excited to acquire these properties. There are a few in mind who are looking to break into the Las Vegas market and a few who are already here/ have properties. Also, with this type of package it's a buy and hold package (for the most part). The investors would have to be okay having their money sitting in the portfolio for a longer period of time. I am going to message you!

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Timothy Lewis:

    It seems like you have a great opportunity at your footsteps. Is seller financing an option? I think this will allow you to acquire maybe even more than 7 properties. 

    Best of luck brother!

     Hi Timothy,


    Thank you for the response. 

    I am speaking with the seller of the 45 unit property again. 

    He shot down the idea at first...

    Then he thought about it and said he would need to think about it. THEN... he said. "I would need a win win situation that favors me if anything happens." He really negotiated against himself. I just sat quietly listening.

    SO...Yes. It is an option. I will be bringing it up to him again today.

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Julie Marquez:

    @Jordan Murrell I love your story and your mindset shift. Way to get after it this year! It sounds like you've found yourself some great deals, and I say buy them all. If the numbers work on all the properties, you've got a great problem on your hands. Are they single family or multifamily? Can you purchase them with owner financing? What's the hang up on not buying them all? Could you wholesale the ones your don't want?

    What you might need are partners. If they are a good deal, it should be easy to find people that want to get in on the deals too. BP is a great place to find partners, and we've been looking for NV or AZ investments too. If the numbers work, people will want to help you and maybe you'll have 75 properties in 12 weeks!

    Hi Julie,

    Thank you for the response. 

    They are mostly single family properties sprinkled with a couple duplexes.  As I mention to Tim & AJ... One investor wasn't open to it at first but then he negotiated against himself and said he may be open to it. 

    At first, it was fear saying that that is a lot of properties to acquire at once BUT now thinking about it. It is possible and I would definitely need help through my team and great partners who would like to be involved in this purchase. We could wholesale the properties that don't fit our requirements. I will message you also. I would like to hear about your investments and how you think the best way would be to take down both these portfolios. 

    1Reply
  • Todd Rasmussen
    Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Jordan Murrell

    There is a reason the portfolios are for sale and you purchasing all of them or a large portion is a HUGE convenience to the current owner. Don't underestimate the value you are providing by being willing to assume all of these at once.

    Many portfolios are available because aging owner operators have slowly ridden them to the ground. They suck the net proceeds out for personal use and then can't afford a repair or tenant turnover. Then they end up renting to a less desirable tenant, and then they have economic vacancy or more expensive turnovers and the process repeats until they get fed up and sell. That was the case with the portfolio we purchased earlier this year. It can be a hugely profitable opportunity, you just have to go in with your eyes open. Expect lots of tenant turnover and deferred repairs / maintenance if your seller is a tired/fed up owner operator

    Keep letting them talk against themselves. Sounds like you are a natural negotiator.

    They might be most apprehensive about giving you title on all these properties for low to no money down. If that's the case you can break the portfolio up into a smaller number of properties and buy five now with option to buy so many in a year if all the conditions of your owner's financing are met.

    Also make sure you value this deal with the seller using NOI and the cap rate. You can use sales comps to figure your ARV as long as you'd be willing to sell them individually down the road but only talk about this as a commercial investment with your seller. If the portfolio is underperforming you'll build a significant margin into the deal just for that.

    Also again, this is a HUGE undertaking. Take a realistic look at what you can/want to be obligated to. Just home inspections is going to cross the 25K mark and that will be spent to decide if you want/can buy them! Partners is a valid solution, but if you need their expertise and money you either have to find dumb money or you'll find yourself diluted to where you'd be better off staying focused on the properties in your market area and tuning your existing business model to make/keep it sustainable.

    2Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @David Robinson:

    Have you done any calculations or anlysis on the properties to see if they fit what you want in your portfolio? Is there an existing property manager, or do you have one already? Will the properties have renters under contract? These are just a few questions to investigate and help in taking next steps.  Financing these properties is a big step, and I work with multiple lenders that can help, feel free to connect with me I will be glad to help out.

    Hey David!

    Thank you for reaching out. 

    I have done analysis on the 30 property package thus far. There are a lot of great opportunities that would fit our criteria. Now after speaking to a few people. We should look to acquire most, if not all that fit our criteria. You are correct about the financing part. I will message you right now.  

    0Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Jordan Murrell Kudos to you for moving fast! 

    Yes, you get me there! I was thinking "football" 💰 💰 💰 raining!!! Lol

    What I would suggest is that thinking of talking to your other football friends or sports agents if you know and come together to raise the money. In this game, cash remains a very important factor. 

    3 - 7 properties is very doable when there is cash!

    0Reply
  • Erik B.
    Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
    5y

    @jordan murrel can I ask how you afforded your current properties and how you plan on funding (if not  seller financing) these large portfolios on a income, of 30k a year?

    1Reply
  • Adam Cole
    New to Real Estate · Rochester, MI · Member since 2018 · 50 posts · 17 votes
    5y

    @Erik B. I was just about to ask the same question!

    One of my biggest obstacles I face is liquid capital at this moment in my life. I have been able to identify good deals but money is always the issue, which ultimately causes delays. Also, I'd be very curious how you found leads for partners in your area? Or are they out of state? I have had poor experiences in the past with partners, so I am just trying to learn from others success! 

    Congratulations on the potential for this portfolio acquirement!!!  

    0Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Ola Dantis:

    @Jordan Murrell Kudos to you for moving fast! 

    Yes, you get me there! I was thinking "football" 💰 💰 💰 raining!!! Lol

    What I would suggest is that thinking of talking to your other football friends or sports agents if you know and come together to raise the money. In this game, cash remains a very important factor. 

    3 - 7 properties is very doable when there is cash!

    Ola, 

    Thank you for your thoughtful response.

    I wish it was raining money! The post would be completely different lol

    We are currently working on bringing in new investors those from the soccer world. I actually have an agent that is interested and an old coach who are both looking to dabble into investing. Starting to put together a proposal for them. I will connect with you. 

    1Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Erik B.:

    @jordan murrel can I ask how you afforded your current properties and how you plan on funding (if not  seller financing) these large portfolios on a income, of 30k a year?

     Hey Erik,

    At first I was hesitant to get my first deal under contract but I managed to find a capital partner who was also starting out. They didn't have the time or the knowledge just yet and I had the time and the knowledge. We complimented each other very well. From that moment on, I realized that finding capital partners on deals would be the way I will invest in real estate. There are a lot of people that want better returns than their savings account. Get educated, find a great deal and pitch it to people you know. Tell everyone what you're doing. More often than not you will get no's. But that one yes... That one yes will be life changing. 

    So that's how I will fund the purchase of these properties and properties moving forward.

    0Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Adam Cole:

    @Erik B. I was just about to ask the same question!

    One of my biggest obstacles I face is liquid capital at this moment in my life. I have been able to identify good deals but money is always the issue, which ultimately causes delays. Also, I'd be very curious how you found leads for partners in your area? Or are they out of state? I have had poor experiences in the past with partners, so I am just trying to learn from others success! 

    Congratulations on the potential for this portfolio acquirement!!!  

    Hey Adam,

    I can definitely know that capital is a HUGE obstacle in investing. At first I had this mindset. But I realized I am a team player. If your idea and your deal is good, there will be people who will want to invest with you. TELL EVERYONE. It may get overlooked but if you tell everyone, you will eventually get a yes. 

    In terms of partners, look for people you like, you trust and you would definitely hang out with. Make sure you make it clear of the roles of each partner in the deal. If you are a flipper, you wouldn't want your cash provider over your shoulder telling you how to do your job. Be up front and honest. Share the good times and share the bad times. The bad times actually warrant for better conversations, at least with my partners. I show them the issue and provide solutions before they even have to ask. There is nothing worse than someone coming to you with a problem.... with no solution or next steps. 

    Hope this helps.

    1Reply
  • Erik B.
    Rental Property Investor · Amityville, NY · Member since 2018 · 351 posts · 441 votes
    5y

    That makes sense. Do you mind sharing the details of the partnership and how you structured it? 

     Hey Erik,

    At first I was hesitant to get my first deal under contract but I managed to find a capital partner who was also starting out. They didn't have the time or the knowledge just yet and I had the time and the knowledge. We complimented each other very well. From that moment on, I realized that finding capital partners on deals would be the way I will invest in real estate. There are a lot of people that want better returns than their savings account. Get educated, find a great deal and pitch it to people you know. Tell everyone what you're doing. More often than not you will get no's. But that one yes... That one yes will be life changing. 

    So that's how I will fund the purchase of these properties and properties moving forward.

    0Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Erik B.:

    That makes sense. Do you mind sharing the details of the partnership and how you structured it? 

     Hey Erik,

    At first I was hesitant to get my first deal under contract but I managed to find a capital partner who was also starting out. They didn't have the time or the knowledge just yet and I had the time and the knowledge. We complimented each other very well. From that moment on, I realized that finding capital partners on deals would be the way I will invest in real estate. There are a lot of people that want better returns than their savings account. Get educated, find a great deal and pitch it to people you know. Tell everyone what you're doing. More often than not you will get no's. But that one yes... That one yes will be life changing. 

    So that's how I will fund the purchase of these properties and properties moving forward.

    Not at all. I will message you! Lets chat. 

    0Reply
  • Adam Cole
    New to Real Estate · Rochester, MI · Member since 2018 · 50 posts · 17 votes
    5y
    Originally posted by @Jordan Murrell:
    Originally posted by @Adam Cole:

    @Erik B. I was just about to ask the same question!

    One of my biggest obstacles I face is liquid capital at this moment in my life. I have been able to identify good deals but money is always the issue, which ultimately causes delays. Also, I'd be very curious how you found leads for partners in your area? Or are they out of state? I have had poor experiences in the past with partners, so I am just trying to learn from others success! 

    Congratulations on the potential for this portfolio acquirement!!!  

    Hey Adam,

    I can definitely know that capital is a HUGE obstacle in investing. At first I had this mindset. But I realized I am a team player. If your idea and your deal is good, there will be people who will want to invest with you. TELL EVERYONE. It may get overlooked but if you tell everyone, you will eventually get a yes. 

    In terms of partners, look for people you like, you trust and you would definitely hang out with. Make sure you make it clear of the roles of each partner in the deal. If you are a flipper, you wouldn't want your cash provider over your shoulder telling you how to do your job. Be up front and honest. Share the good times and share the bad times. The bad times actually warrant for better conversations, at least with my partners. I show them the issue and provide solutions before they even have to ask. There is nothing worse than someone coming to you with a problem.... with no solution or next steps. 

    Hope this helps.

     Heck yeah that helps!!! Thank you so much for that advice. I have been making some major mindset shifts but still struggling in some areas. Namely the "get the hell out of your comfort zone" area. If I have further questions, I'll be sure to reach out !!

    Thanks again and we'll talk soon!

    0Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5y

    I'd partner with someone with the capital to tackle all of them. Structure it so you have equity while doing the leg work to entice an investor. 

    0Reply
  • Sarah 'Sadika' J.
    Professional · Washington, DC (washington dc) · Member since 2015 · 57 posts · 11 votes
    5y

    @Jordan Murrell love your story. Keep us posted.

    0Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Caleb Brown:

    I'd partner with someone with the capital to tackle all of them. Structure it so you have equity while doing the leg work to entice an investor. 

    I am interested in doing that. We are currently looking to find a capital partner to acquire the portfolio. Would you know anyone interested?

    0Reply
  • Jordan Murrell
    OP
    Las Vegas, NV · Member since 2020 · 162 posts · 113 votes
    5y
    Originally posted by @Sarah 'Sadika' J.:

    @Jordan Murrell love your story. Keep us posted.

    I will for sure!  

    0Reply
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