Best Way to Sell Rental Portfolio

[Austin Hughes]

Anyone experienced selling off a portfolio of rentals? Wondering how you marketed, who you sought out, how you worked with realtors, etc.

Thanks in Advance! I'm in the Lubbock, TX Market.

[Matt Moreland]

Hey @Austin Hughes! Hope you're doing well man.

A lot of the portfolios that get listed in Lubbock are listed way over market price and not marketed effectively which is counterintuitive if the point is to get it sold and/or 1031 into something else. You are going to get some hits from listing it on the MLS, sure, but most of the serious buyers on a decent sized portfolio are going to be direct contacts of investment agents or other investors you know yourself, as most buyers perusing the MLS at any given moment are not looking to buy 10 - 20 single family houses in one go.

Buyer retention is huge. You gotta keep eyes on the listing and get them through the numbers before anyone will be submitting offers. Most packages in our market are listed with little to no property information and few if any photos and financials. Putting together a high quality offering memorandum just like you would for a multifamily property and outlining the package as a singular investment, along with historical financials that back up your pricing goes a long way in terms of retention of serious buyers and moving them into the stage where they are interested in submitting serious offers. It sets your listing apart from every other package of properties that is pushed out too quickly with the assumption that it will sell with little to no supporting information. 

So overall, pricing it to sell as a package (not as individual properties added together and priced at a premium), delivering it directly to investors in addition to listing services, and providing high quality information on the property are some of the biggest levers you can pull to attract serious offers and not see it sit for months with no activity. Shoot me a text/call if you wanna visit some more about it, would be great to chat and catch up on what you've been up to!