BIG investment deal happening need help ASAP!

[Somaya Abdelhadi]

Hello guys, so I have a seller who offered 10 homes for 500,000 all together he says the Zillow estimate for the combined properties is $780,000. All are rented except for one and they bring in $7,560 a month. My partner and I are new to this, we just bought a list and began cold calling. We are trying our hand at virtual wholesaling in Memphis. Somehow we stumbled upon this and I must admit I was not expecting something like this out the gate and I’m just trying to wrap my head around it.

So obviously, I have to look at the comps on each one and figure out how much they’d be worth all together as a bundle. But how do I go about structuring this deal and will cash buyers be willing to buy the bundle? At first glance the properties don’t seem to need much work based on the Zillow pictures. He also said he doesn’t really want people walking through the property and disturbing the tenants, so how would that affect this whole equation?

If you are familiar with or have experience with this type of situation feel free to comment or message me. Any advice is welcome!! Thanks in advance

[Ray Johnson]

@Somaya Abdelhadi You mentioned you're trying your hand at "Virtual Wholesaling", A deal of this size will require you to be on the ground in the area of the properties in Memphis.

The first thing I'll point out is important, the value according to Zillow is worthless, If a Wholesaler presented a deal to me using "Zestimates" from Zillow, I'd know they don't know what they are doing and are wasting my time. You need an agent to provide you with recent Comps from the MLS because when it comes time to appraise these properties an Appraiser isn't using Zestimates from Zillow, they are going to appraise based on reality. It's easier if all the properties are very close to each other, if there are different zip codes, there will be more work involved establishing actual value.

You mentioned all but one is rented, What's the condition of the interior, exterior, and mechanicals? An experienced buyer doesn't have "shiny ball syndrome" this means they will not be enticed by the $7,560 a month, they will want to know what's this property going to cost during their projected holding period. Speaking of the "$7,560 a month", Is that Gross or net income, What's the breakdown per property? That's something else you want to list, often a bulk sale will have some good properties, some ok properties, and some really bad properties that the owner can't sell on their own so the bulk sale is the best or only way to go. Remember when you buy in bulk, there's an expected discount, especially for a cash buyer, so the seller is saying I have properties for sale that I'm willing to make less money selling in bulk.

I don't know much about Virtual Wholesaling, but this may require some in-person work so I'm not sure how to get around the fact that he doesn't want people walking the properties disturbing the tenants, I would never participate in a deal that I can't have each property clearly walked and inspected. You will also need the buyer to have their GC or several GC's walk the properties to provide reliable rehab estimates if needed.