Portfolio buy

6 Replies

Hey BP!

There is a local investor selling off his portfolio and has 7 properties (8 units) for sale in a package deal. All of the properties are currently rented and bringing in $5400/month in rents. I haven't run the number yet but I was wondering if its possible to buy 7 properties at once or would it be 7 separate transactions? The houses are available separately but they are cheaper if you buy them as a package (which I rather do).

The properties are in good shape but not the greatest neighborhoods. My Realtor is supposed to be getting me appraisals, income/expenses, and accurate taxes/comps for rents. 

Is one transaction even possible? Would this have to be a cash deal? Has anyone bought out someones portfolio before?

Thanks BP!

@Jason Clinton

Yes, it is very possible to buy houses in bundles.  The key is finding the right financing.  

I would look for a portfolio loan from a local lender.  (Portfolio Loan means the bank will hold the paper themselves rather than trying to do a Freddie / Fannie conventional mortgage that can be resold.)   Alternately you can go to a company like B2R finance that specifically does this sort of activity.

Your loans are likely to have a higher interest rate than a conventional mortgage and also likely have a 5 year balloon or adjust feature.  Make sure you know what you can get, then do the math on the properties to see if it still makes sense.

Good luck.

Do you want to get all 7, or can you just ask to get the top 5 performing properties in the portfolio ?  There are great way's of setting yourself up to ask for that and pick out the best 3-5 you are interested in getting 

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@Jason Clinton

Wow! That is quite the find. I have not heard of many cases where you can buy the package. I hope to one day find a deal like that with owner financing.

Have you asked if the seller will owner finance?