Portfolio Deal structures?

[Joseph Molander]

Hello again BP, A potential deal came to light today. I know an Invester wanting to liquidate her portfolio of a dozen + SFR that are all rented and cash flowing. She wants to sell because she doesn't have an close family living anymore and doesn't want them to go to the state when she passes. Today I met a another investor who loves to buy out portfolios from investors. They don't know each other...yet. How should I proceed? Assuming all the properties are in great condition and he wants to buy all of them. What are some ways I can structure this deal so everybody wins? I have an appointment with my real estate attorney next week. What are the questions I should be asking him, other than his experience with deals like this?

[Ed Emmons]

I would think a major question is what is to happen to money? The state and nursing homes take cash much easier than houses. Before closing sellers needs to set up an entity like maybe an irrevocable trust, a limited partnership or some other estate planning entity to protect those funds and get them distributed the way seller wants. That should be worth something to seller above the purchase price. Can you negotiate with both parties, find out what both want, disclose that you would like something for your value ( the deal wouldn't happen without you). I would get a signed agreement by both parties before they meet to include you in deal. Check legal on this if you don't have a real estate license, ask that attorney to make agreement that is legal. Maybe if you were willing to take your cut over time it would open other options.