Buying 60 homes

22 Replies

Good afternoon,

I'm just seeking advice about a deal that I came across that is 60 homes for sell with a monthly net of 66,000. I just would like to hear some ideas on how to finance this deal

How much is the total purchase price? Any repairs needed? What is the total market value of the properties? If there's enough spread on the value vs. the purchase price, you have many options to fund the deal. Give me more details and I can come up with at least 3 ways for you to fund this deal.

You may want to connect with Bill Walston here who has experience in package deals and master lease options. 

Hope that helps! 

Thank you for the reply @wendell de Guzman the purchase price is going to be 500,000.  The total market value for the homes is 600,000 most of the home are remodeled amd 53 of 60 are rented out ranging from 500-1200 a month in rent 

Originally posted by @Antonio Tyler:

Good afternoon,

I'm just seeking advice about a deal that I came across that is 60 homes for sell with a monthly net of 66,000. I just would like to hear some ideas on how to finance this deal

 Just trying to clarify. There are 53 out of 60 rented at 500-1200 a month rent at a monthly net of 66k. Yet 53 x $1200 is only 63.6k. Am I missing something? 

Also, some of these houses are generating $1200 a month and you're only paying 8,333 per door? 

If these numbers are correct I will help you purchase. 

Considering these meet the 13% rule...unless these are safe houses in ISIS controlled Syria, or the houses are constructed out of lead-paint infused asbestos this is the slam-dunkiest, slam-dunk in the history of slam-dunks.  

If it were me I'd get hard money.  You only need to show up with $120k, and with those metrics, it won't be hard finding a lender or paying back the loan.

Talk to your bank and local credit unions and ask them about a blanket loan or business loan on 60 investment properties.  Otherwise, I'm sure someone on here would jump on this with you.

If you buy 60 houses that cost a little over 8K each that sounds like you just bought a full time job.  I can't believe these houses have been remodeled or are in good shape but selling for under 9K each.  Is this in Detroit?  Most banks have a minimum loan number such as 50K but you only need one bank or credit union.  Could the seller carry back 20% and the bank loan the other 80%?

The numbers just don't make any sense.  This is not a real scenario, as presented.

I think he forgot to add a zero

Yea. Something clearly isn't adding up. 

10k houses getting 1,200 a month in rent?  Thats impossible......

His math was just a tad off. 

I'm sure its 60 houses for 5mil and the houses are worth 6mil.

Then the numbers look at least in the realm of possiblity.

I would say 700-900 in rent is believable since I get it regularly for 10k houses.  I guess it partly depends on how much section 8 pays which will vary by housing authority.  A large house with many bedrooms might qualify for 1200/mo or more.

Also 66,000/60 is 1100/mo.  I think a realistic number might be 60*600 after expenses or 36k/mo 

I just want to add myself to this post just to follow the deal.  The numbers doesn't add up

A 60 unit building for $500K would be nice deal if I could find it.  I tried to buy a 9 property portfolio and had so many issues trying to make the deal work.  Couldn't get a commercial loan.  Not only that, I would've had to pay closing costs on ALL 9 properties.  You have appraisals, inspections, who knows what else.  Ended up just getting 3 properties.  I don't think I can wrap my head around 60.  I think I'd go nuts.  How long do you think it takes to close on 60 homes??

These homes are in balitmore, MD and the 60 home package is going up for auction in a month. I have receive the broke down of each of the homes and the rent for each on a pdf file 

60 homes in our area.  They must all be in West Baltimore, I think you may want to do some extra due diligence as someone above me mentioned West Baltimore is just slightly above Iraq and Syria.  Yes, I believe they might be getting 1200/mo with Section 8 but I'm HIGHLY doubtful they are all rented and not in need of massive repairs.  

Even so, 60 homes in this neighborhood at auction- you may have some stiff competition. Good Luck

An auction..... then you have no idea what the price, or the reserve, is going to be.  a "starting bid" is not a reserve.

Don't you need all  cash at an auction?

is this similar to maxspan auction in Philadelphia last year?  I had no guts to even drive through most of them. Cannot believe these kind of streets are in Philadelphia. I just have to imagine how Camden maybe. You have to make at least one round through each of them.

Originally posted by @Wayne Brooks:

An auction..... then you have no idea what the price, or the reserve, is going to be.  a "starting bid" is not a reserve.

I agree with Wayne. Since this is an auction the actual price can be $3M or whatever. Also, for auctions you have to pay cash for this and the number of ways for you to finance this creatively goes down dramatically. You need to work with a private lender or JV with an experienced investor so you can raise the capital to buy it.

The bigger question is: How are you going to manage the 60 homes?

Do you have your own property management company?  Because you'll likely need one to manage these effectively.  It's doubtful that you'll find a property management company that will do it, without embezzling your money (ex. charging you higher expenses/repairs, then pocketing the margin).

I buy SFRs nationwide (TX, NC, SC, AZ, FL) that rent in that range ($1,200+).  They all cost between $90 to $130K.

LOL--his original post had my eyes popping with dollar signs:)

Some things are too good to be true:)

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