Advice on getting started

[Demisha Gayton]

Quick question REI gurus! I just established my LLC, just applied for my business banking account today and I'm trying to get my feet wet with my first deal. I don't know a whole lot about REI, but I'm tired of analysis paralysis. I found a person that's selling their 11 property portfolio for $1.2M, all properties are currently rented. How the heck should I go about trying to land this portfolio? Or would it be best to just try and wholesale it? I look forward to hearing from you.

[Jon K.]

Originally posted by @Demisha Gayton:

Quick question REI gurus! I just established my LLC, just applied for my business banking account today and I'm trying to get my feet wet with my first deal. I don't know a whole lot about REI, but I'm tired of analysis paralysis. I found a person that's selling their 11 property portfolio for $1.2M, all properties are currently rented. How the heck should I go about trying to land this portfolio? Or would it be best to just try and wholesale it? I look forward to hearing from you.

That's honestly a novel's worth of information you're asking for.

"Or would it be best to just try and wholesale it?" - This is very subjective and depends on your goals. your resources and the properties themselves. There's a phrase some folks use that may be applicable here: "Keep the best and wholesale the rest".

Do you feel comfortable in your ability to properly evaluate the portfolio? The ARV's and the cost of remodeling? Are the tenants all current in their rent? Are they paying market rent or are they below market? How long are their leases for?

This is a lot to take on for someone who is just getting started and admittedly doesn't know a whole lot about REI. Do you know any local, more experienced investors that you trust to work this deal with you? 1.2 mil could be an amazing discount for this portfolio or it could be highway robbery. There are a lot of variables you have to figure out before you can begin to negotiate.