Tips for buying an investors ENTIRE portfolio

[Scott Rist]

Hi folks,

So I recently got a lead on a landlord interested in selling off his entire portfolio. 

I have only spoken with him on the phone and have a meeting with him at the end of the week.  

For what its worth, he just seemed like a down to earth older gentlemen.  He was definitely not a wheeler dealer type.  

Here is the info I have:

He owns about 30 units most of which are in "C" class neighborhoods.  

He is sick of managing them and is motivated to sell some or all

He is willing to owner finance at 10% down and 7% over 30 yrs (as soon as he said 7% he said "but that is negotiable")

He is very open to creative ideas to get the deal done.  

All of the properties are built in the 70's and none are in need of "major" repairs.  He said they all could use some work, but have been well kept.  He is a retired carpenter and I can tell the type of guy that cared for what he owned.  At least from my impression.

He mentioned he would like to do a 1031 exchange, but if he doesn't have something lined up its not necessary.  He is talking with an investment company that would manage any future deals for him.

Bottom line is a wants an easy deal, and is very interested in selling as a complete package. 

So my Questions are:

1.  With a bulk deal like this what type of further discount, if any, should I plan to factor in to an offer?  I figure if I could by all, or a big chunk, of his properties it would make things much easier for him, thus implying a deeper discount.

2.  If he owner finances the deal, will he be able to spread his taxes out throughout the payoff of the loan?  I read that somewhere and mentioned it to him.  He was interested to know more.

3.  What have been favorable terms, that might not be obvious, that you have put into your owner financed deals?  I've never done one.

4.  Any other experiences or negotiating leverage you can think of when buying an entire portfolio?

I look forward to any advise.

Thanks,

Scott Rist

[Jeff B.]

hmm;  Class-C and he's "sick of managing them".

Ask him when did he buy the first one (underlying question w/o asking is how long he's held the properties).

The shorter the hold, the worse it looks for you - - you will soon be SICK too imo.