Portfolio Investor Sale Scenarios

[Ron Jacobsen]

I have two questions that I'm looking to get your feedback on in this post. But first some background.  My companies own 31 rentals properties in and around Raleigh/Durham NC, they bring in around $440K in rents annually, two are short term Airbnb rentals and the remainder are long term rentals, average rents are around $1200/mo, Zillow values on these properties would be north of $6M, debt is around $2.4M, on most of the portfolio we have long term fixed debt at a sub 4% rate.  A friend and private lender of mine has a very successful business that generates a lot to cash.  He has proposed buying an interest in my rental property business, perhaps upwards to 50%.  This is a very trustworthy individual who I have the highest regard in and have know for over two decades.  The main motivation I would have to consider putting a deal together would be to diversify my net worth as it is overly allocated to real estate.

First question: I'm looking for a CPA or sophisticated investor who have experience in M&A or deal structure to help me create some deal scenarios.  I'm expecting to compensate this professional for their time.  Any recommendations?

Second question: I'm curious if other rental investors reading this post have general opinions on selling an interest in their portfolios?  Hypothetically, for the right price and terms, is this something that you would consider attractive - why or why not? If so, what conditions would need to be present in the deal structure to make it attractive to you?

Thanks for any feedback you provide.