Analyzing, Offering, and Selling on Small Portfolios Packages

3 Replies

Hey BP community! As some of you know I'm BRAND SPANKING NEW to wholesaling and am just getting my business off of the ground as it's just over 2 weeks old.

I've had a couple of different sellers reach out who are interested in unloading their rental portfolios in Baltimore (City), MD. These portfolios contain less than 10 properties each. The portfolios range from either being all contained within one zip code to being spread across the city.

I was wondering if anyone had any advice or tips for analyzing portfolios, offering (contract side - can they all go under one contract, should I contract them individually, etc.) and then assigning them/it to a buyer. 

Preferably they'd all sell as a package, passing on greater savings to the end-buyer and saving time/effort for both the seller and me. I'd even be able to discount my "per property fee" if it could be done in one fell swoop - passing on even more savings to the end-buyer.

Thank you for the tips/advice!

@Melanie Hartmann since your intention is to wholesale it is to your advantage to have separate contracts. In wholesaling you are not selling property you are selling contracts. If you have one contract for all the properties then you need to find a buyer for all the properties. If you have individual contracts you have the option of selling the entire package to one buyer or selling them off one at a time.

Originally posted by @Ned Carey :

@Melanie Hartmann since your intention is to wholesale it is to your advantage to have separate contracts. In wholesaling you are not selling property you are selling contracts. If you have one contract for all the properties then you need to find a buyer for all the properties. If you have individual contracts you have the option of selling the entire package to one buyer or selling them off one at a time.

Thank you Ned! This is seriously the best advice I've gotten regarding this and I've posted across a lot of sites and forums! So, just for clarification, let's say I have 5 contracts for all the properties from one "package." If I find a buyer interested in purchasing all 5 contracts but only if the price could be lowered for each one, I could go back to the seller and lower the price for each one individually? Assuming the seller is open to that, as most seem willing to sell for less overall if they all sell together. I just could see them being hesitant to that, say if the buyer backed out, but now I have all the properties under individual contracts for much less than the seller would want them to sell separately. I guess I'm wondering if there is any way to indicate that a lower price reflects that they are being sold as a package. Maybe this is one for the attorney, haha.

I would simply present it as i want to buy all 5, here are 5 contracts. Get the 5 price but do it as separate contracts. 

PS thank you for the compliment.