Flipper/Rehabber · Daly City, CA · Member since 2018 · 50 posts · 11 votes
Hello BP,
Just asking for some advice. I have a seller who Is wanting to sell 5 properties as a bundle. This five properties are all right next to each other and makes an "L" shape. What makes the deal a little more complex is that 2 properties are SFH, 1 property is a commercial building, 1 property is a MFH, last one is a vacant lot. 4 properties are in a row and the last one is on the other side of the street (L) shape. How would I go about structuring this deal? also if I get all 5 properties under contract how much of a discount is reasonable? 5%? The condition of these properties are not good at all... 1 needs to be demo basically 1 needs a full rehab 1 is a vacant lot and the other 2 are 4/10 condition.
Investor · Lee's Summit, MO · Member since 2017 · 81 posts · 37 votes
8y
Should be 5 deeds right? The question should be about the loan. You need a portfolio or multi property loan. Not uncommon at all. Only problem downstream is breaking one out of the loan to sell. My last deal like this was for four properties. I didn't argue about the first two but asked appropriate discounts on the others. Give a little get a little. There are probably not many buyers that would come along and cash him out. The only other way is to cherry pick over time. Start with the best one at a fair deal and work your way through the lot over a couple of years. Don't buy the worst one.
Should be 5 deeds right? The question should be about the loan. You need a portfolio or multi property loan. Not uncommon at all. Only problem downstream is breaking one out of the loan to sell. My last deal like this was for four properties. I didn't argue about the first two but asked appropriate discounts on the others. Give a little get a little. There are probably not many buyers that would come along and cash him out. The only other way is to cherry pick over time. Start with the best one at a fair deal and work your way through the lot over a couple of years. Don't buy the worst one.
Property Manager · Boston, MA · Member since 2014 · 194 posts · 73 votes
8y
Sounds like Syria. If you can wholesale much better. most like if in bad condition low ball the hell outta guy.. if hes a bad landlord or just plain lazy he would sell unless he has sentimental values. If thats the case be upfront on his properties if in a bad condition, commercial building sounds exciting but if its between crappy properties you have a reason to walk away. theirs no structuring crappy properties. if your not able to buy it to fix it im sure your going to have a hard time wholesaling it also..if you do post pics. but i would hit every property diligently. lol good luck
Flipper/Rehabber · Daly City, CA · Member since 2018 · 50 posts · 11 votes
8y
Thanks for the reply @Account Closed yea these properties are in bad condition. but the land is what is valauable. Its in the bay area (right next to San Francisco)!