Someone is selling off their portfolio in a small town near me. For 1.9 million they are listing about 32 doors. There is a seven Plex, a five Plex, and the rest are mostly Duplex is with some two bed one bath single families. He has 28 of the 32 Doors occupied and a potential gross rent roll just over 20,000.￼ it's an area that we want to invest in end of properties all looks well Kevin but I'm having a hard time coming up with a valuation on them. I have reached out to see if I can find the information I need to back into the NOI. The average door price is 65,000 those some of them are 600 square-foot one bed one bath apartments and some are duplex is probably worth over 150k. (We're in the Midwest).
I’m not really sure where to go from here. I have credit lines of about $100,000 and currently own one in process flip, three single families, and one for plex. I think the best way that I could make this possible would be to try and get a couple hundred thousand dollars of the seller financing, $100,000 from my own line of credit, and maybe try and raise a couple hundred from outside investors.￼
When negotiating some thing like this do I just look at the whole portfolio? Figure out the actual NOI and apply a caprate to it? I'm also open to looking at just the apartment complexes or just a couple duplexes at a time. I'm just not sure where to go from here. I guess the obvious answer is we could structure anything we wanted, but this is definitely a level up for me.￼
I’d love to hear any thoughts or consideration. I know a lot of this is vague but I’m looking for more details. Thanks!￼
Please forgive Siri’s dictation.
I was googling how to acquire a large portfolio myself. Check out blanket mortgages. Also i think youre refering to the listings in cleveland right? Pm me i might can snap photos of a few im half an hour away.
@Parker Brooks Nope, central Illinois.
It sounds like you're trying to raise the capital for your down payment then finance the rest given the numbers you shared. If that's correct, I'd start by finding a portfolio lender - probably a local bank. They'll be very familiar with the buildings, neighborhoods and will be able to tell you what they would and would not be willing to fund. They want a deal that works for them if your loan fails so they have to be comfortable with the market value of the properties, which is why they're able to do a rough assessment when considering what to bring into their portfolio.
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