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Updated over 3 years ago,
How to offer landlord a win-win deal for 5 properties at $2.5M?
Hello BP!
The Portfolio: Five multi-families (All 3 units, excellent tenants, excellent locations, well-kept). Purchase price: $1.3M. Value today: $2.5M
The Background: My landlord (let's call her Sara) owns 5 properties in West Hartford, CT and she wants to sell all her properties. A few months ago I reached out to Sara and asked her to be a mentor as I began my real estate investing journey. I've been listening to BP podcasts, going to local meet-ups, rapidly digesting books, building relationships, researching markets and seeing properties. In other words, I'm hungry. Also, I work full time as an engineer.
The Need: How can I go to Sara with an offer that is beneficial for her? Can I build my case around helping her avoid capital gains tax? What are the benefits of selling to me now that outweigh waiting 30 years for a $2.5M pay-out? The motive for Sara is she does not want to manage these properties anymore. The disadvantage for me is I don't have 25% of $2.5M. Sara has made it clear if I can present a case which is beneficial for her to sell the properties to me, she will do it.
I welcome all feedback, comments, constructive criticism. Bonus points if you are an accountant in the CT area :)
Annie Pitkin