Buying multiple properies with 1 seller how to structure deal?

Question

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.

Thanks guys!

Jonathan Tang · Answer

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)!

Account Closed · Answer

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

Richard Heine · Answer

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.