Opportunity to acquire a 200 property portfolio

8 Replies

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.

The irony is, somewhere some one is sitting on bunch of cash, just hoping to find something like this and chances are, he/she will never come across this post.

Anyways, what are the numbers like?

Is the seller willing to carry the financing? Please keep us posted.

Like I said I haven't received the rent rolls yet but I do have two properties of my own in the same area that are very similar to a large number of properties in this  portfolio. They are also managed by the same management company. The two that I have cash flow about $300-$350 per unit a month after all expenses, debts, etc.

The seller is willing to carry a portion of the financing. He basically wants to have his outstanding mortgages paid off.

What is an average property value?

In my opinion ( I am an appraiser in the area so I think I have a pretty good feel for it) they range from 30-35k in the not-so-nice areas to 50k+ in the more gentrifying areas. One key component is the incredibly low taxes. I know for my two units they are both under $500 annually. Yes, annually. I know most of the units in the portfolio are pretty similar.

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.

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