Tenants seek investors for unique Landmark District house REO

[Account Closed]

We are long-term (6 year) tenants who have been faithfully paying rent in a very unique 5000+ sq ft/8+BR house in a landmark district. The owner was foreclosed on years ago and now it is REO or soon to be. The bank wants $2.2 million. Heard an offer went in of 1.8 by someone. Are there ways to find investors who just want to own/sit on for a while with a rent roll or who might be able to be part of a patchwork of a few investors? There are a few of us and some former tenants who could come up with funding but it wouldn't be as immediate as needed. I do know two appraisals were just done in the past month. And I know the comps in the neighborhood but this is a very unique property in terms of size as a single family and so not particularly desirable as such (could not be converted to a multi-fam). We do have a couple skilled workers in the house and it is in such a state that it could be left as-is with minimal repairs/upkeep as needed for the next 5+ years. It's like a country farmhouse but in the city.

[Sergey A. Petrov]

Looking at your other post, it sounds like there are 8 tenants/roommates with an emotional connection to the property. The funds between all of you aren’t enough to acquire it. The rent roll doesn’t seem to support the valuation (otherwise it would’ve sold to an investor a long time ago). This is where emotional and business cross lines. If the 8 of you want to own it because you like it, are willing to overpay, and can come up with the money that is the way to go. Otherwise, I think you’ll have a very hard time finding an investor willing to make an emotional decision where the numbers simply don’t pencil.

[Mohammed Rahman]

HI @Account Closed said above. From your description it sounds like yourself and the other tenants are looking at it from an emotional perspective and are really scraping the barrel to find reasons to justify the valuation. 

Here's a question an investor will ask: Who cares if it's a country farmhouse in the city? Am I making enough money to sustain my payments and net enough after expenses? If not, pass on this deal or offer a lower amount. 

If you're really wanting to look for investors, posting cold-messages in the forum likely won't be the most fruitful... Investors don't use BP to find deals but rather to network and then hopefully find deals. 

I recommend networking with agents who work with investors and see if they can help you find a partner - which I don't think will happen if the foreclosure/REO has already been in the works for a while, all the agents in your locality will likely already know about this property.