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Updated over 4 years ago, 08/02/2020
95 Doors... What to do now (REIT conversion.. portfolio sale?)
TL;DR: What's the best way forward with 95 doors in the same zip code across 15 properties. Portfolio sale? To whom? Convert to a REIT?
A new triplex acquisition next week will put me at 95 doors. My overall ownership is 50% (some are 100%, some 30% and most are 50%). I am the point man and manager on everything though: I find and negotiate the deals and then I manage them for a fee off the top...I've always contributed my % of the money (no sweat equity) - none of my partners are active, most lack experience, and will follow my lead.
On a couple deals I brought partners in out of necessity (financially) and on a couple I brought in friends (no financial necessity) with the hope I could have someone with "skin in the game" who could be relied on to manage while I'm traveling. The latter no longer appeals to me.
While I'm ok with the status quo (hunt out and negotiate as many off market deals as I can afford); I feel like the time is coming to take a bigger leap than a triplex here, a 6-Plex there.
What I DON'T want to do is piecemeal out the portfolio; so this is where feedback from people who've been in the same situation is needed:
1) What is the likelihood of selling a smorgasbord of C/B- units (big upswing as most are a block off the beach) in one shot to a single or institutional investor when they're made up of mostly smaller buildings (32, 17, 7, 7, 6, 5, 4, 4, 3, 3, 3, + 3 condos and a townhouse)?
2) What if I wanted to consolidate and covert it into a REIT... buying partners out at the same time: What are the upswings and pitfalls? I can read books about it all day long but would be very interested (and grateful) to hear from someone that has done this.
I don't need cash for anything except future investments so the benefit of selling current holdings is simply to consolidate and scale.
As far as a REIT conversion- I have no idea if this is even a plausible route to take.
Thank you in advance for the insights!