Opportunity to acquire a 200 property portfolio

Opportunity to acquire a 200 property portfolio

Appraiser · Bensalem, PA · Member since 2015 · 32 posts · 5 votes

I have a close relationship with an investor who currently owns a portfolio of around 200 single family investment properties. They are all geographically proximate to each other and are professionally managed. I am in the process of obtaining rent rolls, expenses, etc. to get an idea of how the portfolio is performing. As of this writing I know 98% of the units are occupied. The investor is highly motivated and is willing to provide a significant portion of the financing to get the portfolio out of his hands. (He's been doing this for over 20 years and is just plain tired of it!)

However, I do not have anywhere near the financial capability of purchasing this property. I would love to work with other investors and create some kind of structure to acquire this portfolio that I know has the potential to be cash flowing from day 1. Unfortunately, I do not know where to go from here. The opportunity is right in front of me and I am turning to BP to help me make it happen!

Where do I begin with this? What should I be looking for? Who should I be talking to?

Any suggestions are greatly appreciated.

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  • Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes
    11y

    I would start by networking with more people in your area. Your Local REIA group would probably be your best bet.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @David Ziccardi

      my first comment is no 200 home portfolio is 98% occupied .. I suspect that to be puffing ..   but good luck with it

  • Appraiser · Bensalem, PA · Member since 2015 · 32 posts · 5 votes
    11y

    @Jay Hinrichs

     It's probably a safe assumption that it operates around 5-7% vacancy. Maybe even closer to 10% because of the constant tenant turnover in this area. However, as of yesterday 5 of the units were vacant.

  • Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
    11y
    David Ziccardi if you want people to help you first what location is it in? What is the asking price? What does the owner want as a down payment? Post the rent rolls and expenses here. Once people know these things they may be willing to partner with you but first they need to know how much cash down will be needed.
  • Appraiser · Bensalem, PA · Member since 2015 · 32 posts · 5 votes
    11y

    @Eddie T.

    Understood. Location is Philadelphia, with a large percentage of the properties in the Kensington area. Working on getting all of that info this week. Will make it available on this post once I have.

  • Investor · Shawnee Mission, KS · Member since 2015 · 423 posts · 114 votes
    11y
    Usually you could pick and buy certain houses, you do not need to buy all portfolio. And second - for whole portfolio he should offer very good discount. What is the asking price for portfolio and what is total rent ? And what is your strategy? By the way, if you will get a deep discounts and short money - you could sell some of the houses with a good profit and you will keep the rest paid off.
  • Rental Property Investor · Middletown, NJ · Member since 2015 · 6 posts · 4 votes
    11y

    I would be interested in learning more about this opportunity as I am an REI considering investing in Philadelphia. If the opportunity is right, am willing to share at my local REI meeting this Thursday. I can be reached at [email protected] or at (732) 704- 4754. Thank you.

  • Investor · Philadelphia, PA · Member since 2014 · 344 posts · 276 votes
    11y

    @David Ziccardi,

    I am interested in learning more.  Once you have more information you can share I can better assess the opportunity.  Also, is the owner set on selling all 200 at once or will he sell in blocks?

  • Appraiser · Bensalem, PA · Member since 2015 · 32 posts · 5 votes
    11y

    @Paulette Midgette

    Still working on obtaining financials. Will update when I can

  • Accountant · NJ · Member since 2015 · 210 posts · 167 votes
    11y

    I am interested in learning more as well.  

  • Appraiser · Bensalem, PA · Member since 2015 · 32 posts · 5 votes
    11y

    Thank you again for all of your inquiries and I apologize for the delayed response. Seller has spoken with several interested buyers (several of which contacted me via bigger pockets) and has decided to hang on to his portfolio as he was unable to get the price he was looking for. While he remains motivated he is unwilling to sell at a price below his comfort level. Thanks again for your feedback everyone.

  • Real Estate Agent · Atlanta, GA · Member since 2014 · 135 posts · 40 votes
    10y
    I know this is old but if you don't mind me asking what price was he asking for the package.
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