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Updated about 9 years ago,
Analyzing a Portfolio purchase
I am working on a potential wholesale deal on a portfolio of rental properties and want to make sure I'm looking at it correctly.
I am evaluating each property individually, and then summing them all up into one group of numbers (asking price, purchase price, monthly income, monthly expense, etc.). Is that the correct way to approach this?
Also, as far as the end buyer, should I assume they get a blanket loan of some sort (assuming they don't have cash) and that there is just one purchase/sale agreement and one closing that covers all properties?
In running my numbers, can someone tell me what a typical blanket loan would look like for an end buyer? I'm seeing 75% LTV, 5.5%-13% interest, 1-3 points, interest only. Is it safe to assume numbers in those ranges when evaluating a deal for buyers?
Thanks in advance!