Selling portfolios of properties... use agents or loopnet or another strategy?

[Michael Wentzel]

We went from zero to over fifty rental properties in about 10 years. Overall real estate investing has been a very good business for us in the form of cash flow and equity. But it is time to scale back to give us more time to focus on our family and some other projects.

So now we are in the process of selling 9 properties in Colorado and 7 properties in Ohio. We have listed them with real estate agents we like and have used other transactions. But I wonder if I should also list them on loopnet or crexi. Is that worth it? Can I do that as an owner? Or are there other strategies to get the properties in front of investors?

Mike

[Bill B.]

Are the properties empty or worst case on MTM leases you can end in 30 days?

You’re going to get a lower selling price for occupied properties just as you will get an even lower price for selling a portfolio of homes. (They both shrink your pool or buyers and combining them really shrinks the pool.)

Assuming you don’t plan to do a 1031 exchange you’ll also pay higher taxes if you can’t spread them over two calendar years, but not much. 

I’d list them each empty and individually. If you pool them you’ll be “guessing” at each individual value. Good luck.