Purchasing a "Package Deal"

Purchasing a "Package Deal"

Newport News, VA · Member since 2017 · 5 posts · 0 votes

Hello everyone. I am new to real estate investing and may have bitten off more than I can chew here. I called on a FSBO sign and it turns out that the owner had 9 rental properties and had recently moved to Florida. She told me she was considering liquidating the properties because her daughter did not have time to manage them for her. She told me she would provide me with all the information on the properties and if I was interested we could close with a lawer and a title company and avoid a lot of fees. All of the properties currently have tenets. Being new I think this would be biting off way more than I can chew but I wondering is there a way to finance 9 properties (all single family homes) as a package deal? She is going to email me all the information later but I don't have the capital to purchase all these properties unless I get some sort of super huge loan. Just wondering if it can be done.

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  • Newport News, VA · Member since 2017 · 5 posts · 0 votes
    9y

    So I guess not. There is no way I get put that much down. Also all the properties cash flow but I don't make enough to afford the payment with all the houses vacant.

  • Rental Property Investor · Austin, TX · Member since 2016 · 65 posts · 16 votes
    9y
    Justice Lee are you thinking of joint venture with partners? I would be willing to know more about these properties if you are interested in sharing the details.
  • Real Estate Investor · Shelton, WA · Member since 2013 · 369 posts · 639 votes
    9y

    @Justice Lee You have a lot more options then simply traditional bank financing!

    But that all depends on how motivated she is to sell? Make her understand that selling off multiple properties at once is no easy task, and then offer her solutions!

    • Are the properties distressed / lots of deferred maintenance? If so, and negotiate the price down to the "wholesale" price range, take the deal to your local REIA and find a private lender to fund the deal, buy them all and sell them off one at a time, or in small groups, or as a whole package
    • Are they owned free and clear? If so, present her with a seller finance option
    • Are their mortgages on them? If so, offer to buy them "Subject To"
    • Is it a mix of all of the above? Give her options! "If you got cash for 1, 2, 3 and 4, would you seller finance 5-9?" 

    A motivated out of state owner with multiple properties to sell is a great opportunity! You've got your foot in the door, take advantage of it. If you need some help let me know!

  • Fort Worth, TX · Member since 2016 · 62 posts · 15 votes
    9y

    @Justice Lee  great strategies.  More than one way to get this done.  

  • Newport News, VA · Member since 2017 · 5 posts · 0 votes
    9y

    Thanks for all the replies. I considered all the replies but I don't think this deal can get done right now. The seller is not motivated enough right now for me to really do anything creative. As I don't have the money to make a deal this large work it may be in my best interest to walk before I run and just start with one property I can get a great deal on. Thank you very much for the replies though. Even though I didn't get the properties I talked to a lot of experienced people in the last few day and learned a lot.

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