Buying An Investors Portfolio - What key questions to ask

[Jason Lozon]

Sometimes I run across an ad on Marketplace or CL offering an investors portfolio (mostly 2plex-4plex) of properties for sale. Stated claims of gross rent, occupancy rate, and asking price are usually given, and not much more. I always write these off and assume they're some kinda scam. But what if I wanted to inquire about one and see if it was real? What are the critical questions you would ask, or expect to be asked (if you were the seller of a portfolio). What is the next step when I read this ad and I want to know more?

[Sean T.]

Quote from @Jason Lozon:

@Sean T. thanks for the prospective of individual analysis. Also, I had written off DSCR loans because I was told these were complicated and there were better finance options out there. It sounds like you've used DSCR financing. I'd like to learn more about these. I'm starting my research with BP's old threads and the education area. Do you have any resources you'd recommend starting with as I learn about this?

DSCR "can" be complicated but for the most part it isn't too much different than any other loan type.  There will be things to be aware such as reserves, minimum amounts, balloon payments, prepayment penalties, etc.  I would just start by calling around and keep it as a back door option.