Portfolio buy

[Jason Clinton]

Hey BP!

There is a local investor selling off his portfolio and has 7 properties (8 units) for sale in a package deal. All of the properties are currently rented and bringing in $5400/month in rents. I haven't run the number yet but I was wondering if its possible to buy 7 properties at once or would it be 7 separate transactions? The houses are available separately but they are cheaper if you buy them as a package (which I rather do).

The properties are in good shape but not the greatest neighborhoods. My Realtor is supposed to be getting me appraisals, income/expenses, and accurate taxes/comps for rents. 

Is one transaction even possible? Would this have to be a cash deal? Has anyone bought out someones portfolio before?

Thanks BP!

[Greg Scott]

@Jason Clinton

Yes, it is very possible to buy houses in bundles.  The key is finding the right financing.  

I would look for a portfolio loan from a local lender.  (Portfolio Loan means the bank will hold the paper themselves rather than trying to do a Freddie / Fannie conventional mortgage that can be resold.)   Alternately you can go to a company like B2R finance that specifically does this sort of activity.

Your loans are likely to have a higher interest rate than a conventional mortgage and also likely have a 5 year balloon or adjust feature.  Make sure you know what you can get, then do the math on the properties to see if it still makes sense.

Good luck.