Looking to wholesale a 12 unit turnkey multi family?

Question

Any tips or things to remember when wholesaling such a deal? I imagine cash buyers will want to view the units and mechanicals of the building so I was going to make sure I get keys and access if I get it under contract.

Do these larger investors that buyer $1m+ deals and multi family’s typically want full access to review every single unit? Or are photos and access to a few of the vacant units typically enough to get the idea across for the buyer?

I’ll be pricing the deal so the buyer gets instant equity anyways. The extra money could be put towards renovations of all units assuming $20,000 is allocated to each unit, that would bring the total acquisition and costs for that buyer closer to the current market value here if not bring it up more because the comps are based on non renovated units

If they left it in current condition it’s in a rentable turnkey state, cash flowing nicely with great unit mix. I think in the case of this deal it would be good to leave it and update units as they become necessary. Though if they were updated quickly, the end buyer would be able to justify larger rents easily.

Either way I cut it up, it would be a great deal for an investor looking to place their cash somewhere instead of a bank.

Any tips or things to consider if I get this under contract. I’d really appreciate hearing from other wholesalers who have done similar larger size deals with better assignments for us

Charles Carillo · Answer

Account Closed

You are going to really limit your buyer pool if you are only working with cash buyers for a 12-unit apartment complex. Buyers of apartment complexes typically will want to review your underwriting of the property, verify the information and then perform their own due diligence. Buyers usually want to walk every unit and complete a full inspection during the inspection period.

Reed Rickenbach · Answer

I just bought a 6-unit from a wholesaler and I had him get gap funding to double-close on that day because I didn't want to purchase with cash. Look into it - plenty of gap funding out there. IMO this is not enough of a due diligence period for multifamily but you could find a cash buyer, never know.

Account Closed · Answer

With tenants in most of the units it kinda seems like it’ll be difficult to get in there at least short notice it would be difficult. How long can I be asking for inspection contingencies on turnkey multi families in your experience? I want to make it quick enough so they think I’m the end buyer and take me seriously and consider my offer stronger than others, but I also need to be able to have sufficient time to source a couple serious buyers, and then schedule all of those buyer to somehow see the building and each unit. Which would consist of getting the listing agent on site and unlocking each unit for each prospective buyer.

Sounds like a logical nightmare, the agent would prolly quickly find out I’m a wholesaler (though at that point there’s nothing they can do about it, they would just have to accept it)

any Facebook groups good for finding cash buyers you recommend. I follow a couple but would like to add more

Account Closed · Answer

Right that makes sense now to me. If I go in that direction, what recourse or protections do I have that the buyer doesn’t back out after I’ve finished closing with the original seller? I don’t want to be holding onto the property at all really. In this scenario would I be able to close on time / same time as original sale so my holding time is little to nothing?

I’ve worked with a lawyer on a double close a few months ago and was able to use the cash buyers funds to close the sale with the original seller who I told would be cash as well.

If my buyer this time around chooses to close without cash though, I don’t think I’d be able to have my lawyer close that way can they? I’d have to have funds to close and then the seller would close with their source of funds as soon as possible. How quickly would a non cash buyer in such a circumstance be able to close, would they be able to close same day as me?

Account Closed · Answer

In regards to confirming all financial info, what certified financials should I be getting from the seller to provide cash buyers? An income statement? Rent roll? APOD?

Account Closed · Answer

Could I pull this off in an assignment of contract? I don’t have the funds personally to close. I have 15 days inspection I offered. If I source a cash buyer within 7 days, I could provide 7 days to a cash buyer to inspect fully assuming they provide a matching EMD to escrow before they inspect. If they don’t like it at the end of 7 days that would leave me 1 business day to get my $25,000 back

Thomas Tsitouridis · Answer

If you can send the info my way that would be great.

AJ Cihla · Answer

Get on a local wholesaling email chain or Facebook. I’d look at what the more active players do and copy that format until you find your own voice.

I personally won’t buy a property unless I get eyes on (not anymore at least) and I think youll want to get comfortable pre communicating with your seller that you’ll bring a potential partner by to take a look. for all you know, they are a potential partner!

separate from all this would be super clear photos and video (already mentioned) but also a final walkthrough inspection to cover and major detail changes between when you first looked and closing. This should help to put your wholesale partners at ease that it is not really a pure site unseen situation.

Looking to wholesale a 12 unit turnkey multi family?

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