Wholesaling a Portfolio

Investor · LA, TX · Member since 2014 · 93 posts · 46 votes

Hi BP Community,

I notice this question has been asked a couple of times before with no response but I'm hoping since then, new members have joined BP that may have experience in this area. I have a seller who wants to sell his whole portfolio of rental properties (10) and he wants to sell them together instead of breaking them up. I have buyers who are interested in that area but may only want to buy one or two houses each. I think I can sell them all between all my buyers but not all to one of them. How should I handle this? Should I reveal to the seller that I'm a wholesaler and I have relationships with end buyers but need to sell each one separately or do I try to put them all under contract as I would a sf deal and just try to sell them to my end buyers before my 30-45 days are up?

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John Thedford

Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes

again we have posters pushing dishonesty garbage with the sellars promoting lying If you cannot find an end-use. no wonder the world is full of so many cheats and Liars because it seems to be acceptable

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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
Some posts are not worth responding to! Note you NEVER addressed anything that my last post said..not one issue! Like it or not many many people agree with my posts including LICENSED agents that promote themselves as wholesalers. You can try to work as an unlicensed agent but if you want to make REAL money do buy and hold. Most unlicensed brokers play all kinds of games as evidenced by their posts on BP. Want to tie one up? There is one advertised on BP as we speak. They have NO FINANCIAL interest in the property. Previous unlicensed broker tied it up for weeks with $10 earnest money..and then walked. Maybe you can give them $100 and have better luck...but I doubt it. They are now EDUCATED about the games most of these scammers play.
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Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
9y
I think it's safe to assume that an investor looking to sell off a portfolio of 10 rental units is going to be fairly savvy when it comes to real estate transactions, so the conversation would go something like this:
Wholesaler: "I'll give you $900k cash for your ten rental properties."
Seller: "That sounds great! Send me over your written offer along with a 10% escrow deposit and a rock-solid proof of funds (from a local banker I can call to verify) showing you have the other $810k in liquid cash"
Wholesaler: [Stunned Silence]
I write this not to poke fun at @Lena Claybon or anyone else. But to point out that, these guru wholesaling schemes, if/when they work, generally work on unsuspecting/uneducated sellers of distressed single family homes... Not with experienced investors sitting on portfolios of dozens of rental units.
And, I think most of us would agree on some level that taking advantage of unsuspecting/uneducated sellers of distressed single family homes can be a shady tactic. That's what gets people like my friend @John Thedford riled up!
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Jeff Copeland or when your dealing with folks that own a lot of real estate they sometimes find it good sport to lead these newer wholesalers on.. with no intention of doing anything. they are just lonely
LOL or the other thing is they have such bad properties ( very common) they will work with anyone who can unload them..
as I stated at the top of this thread large SFR portfolios are not easy to sell.. especially if they are C and D class.... and the only way to get rid of them is to sell them off peice meal to those that are just beginners or don't know what they don't know about the difficulty in managing super low end real estate.
if they are A and B class ... no need for a wholesaler.. a good RE broker will get it done.. hedge funds are good buyers for these in certain markets.
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John Thedford
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
LOL @Jay Hinrichs..."when your dealing with folks that own a lot of real estate they sometimes find it good sport to lead these newer wholesalers on.. with no intention of doing anything. they are just lonely".
Even a small operator with a couple million in RE would find it difficult to unload them as a package without sacrificing a good bit of equity. Add into that the difficulty of 1031 ALL of them within required time frames to qualify for the exchange on a larger deal means some people like me are basically held to what we have and have difficulty into scaling into larger deals. The only other option is to bite the taxes and work with leftover funds. Please offer some insight to how to make this work. The easiest way I could see to work this would be a large portfolio loan and use those funds to buy bigger projects. Thoughts? I don't think hedge funds are actively buying in our markets with the increased prices.
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Jim Keller
Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
9y
Hi Lena
Wow you pulled a few scabs it sure seems.....
I would encourage you to act, when I was new action was the best way to slove problems. Early in my real estate life a mentor gave me "permission" to mess it all up. I did often.
Times have changed, I'm no longer new and either will you be. Just kick some butt, take some names. Learn how to not hear stinking thinking, develop lighting fast evaluation skills. Learn to become a problem solver.
If anyone of the commentors on this post wanted one of these 10 homes you had under contract. They would do what you needed so they could get the deal, and that's an undeniable truth.......
Give them hell
Jim
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Jim Keller YEAH!!!! LOL. Like your attitude big guy.
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Lena Claybon
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Investor · LA, TX · Member since 2014 · 93 posts · 46 votes
9y
@Jim Keller
LOL! Thanks, Jim! You're right and I am doing just that! I met with the property owner on Friday (who by the way has owned most of the properties for 20-30 years and knows his business inside and out) and did a walk through of all the properties. After discussing cap-ex, cap rate, repairs, market values, etc., and giving him a list of questions a mile long, he called me this morning and wants to give me an option to purchase! He has a realtor but says he doesn't want it sitting on the MLS for months and months and would rather allow me a chance to bring him the cash buyers that I know. Of course, I don't expect it to happen overnight but we are moving forward! So for those of you who have offered positive/useful advice and encouragement, I really appreciate the feedback and for those that didn't, God bless you anyway! Will keep you posted!
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
7y
Just offloaded a 10-pack for an 85 Y/O investor(seller)who is having heart trouble. Sold 5 and bought 5. One investor picked up 4 and the other picked up 1. All done in 30-days. Seller is moving back to OKC with his family. Case closed!! You guessed it, the 5 that I sold was a wholesale deal. Never informed the seller that I was wholesaling any of the properties. Frankly he didn’t care. He just wanted to move on with his life and I helped him with that. Added to my portfolio, made a couple bucks in between and everyone is happy.
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