All Forum Posts by: Account Closed

My business partner and I are discussing the possibility of selling our portfolio of 10 SFR's. I was curious if anyone on this forum knows of a company or individual who specializes in selling portfolios to hedge funds, or other investors. I have a spreadsheet of all the properties with the actual P&L. I could post on the BP marketplace, but all my properties are in different markets and I am looking for a specialist who is licensed or can handle licensed transactions in 3 different states and held in different entities/structures.

When selling a portfolio, what is the best way to approach the situation?  Is this a job for a specialized attorney or title company?  How do you draw up contracts for a portfolio like this?

@April S. I would agree with Jay on this.  You have to spend way more money to get results which is why I don't wholesale at this time.  I don't have the money to spend on marketing.  Your particular area also may not have very good leads compared to another state, county or market altogether.  For instance I'm not investing in my home state of Georgia because I have found far better deals in Indiana and Ohio.  The wholesalers I've worked with tend to go into the ghetto or low income neighborhoods that are older and have more success there because there are more desperate sellers there.  If you're targeting areas where most of the residents are on solid financial footing, have good jobs, and don't need or want to sell then you'll want to switch to a different C or B class area of the country.

Also, while I know having a real estate license can have negative consequences for investors (that's a whole other argument), getting your license could help in some cases because the individual selling knows you are reputable and know what you're doing.  Sometimes the unlicensed wholesalers can come off as cheap, unreliable or just downright shady.  If you don't have our license, consider getting it.

Here are some simple rules.

1. Always use a licensed or reputable property manager for out of state rentals. I use them for all 10 of my SFR's. They know the area better than you and know the local laws better than you. They can handle any sort of registrations that are required and inspections. Don't try to manage them from far away yourself.
2. California is a bad state for investing in rentals.  Look to other markets like Ohio, Indianapolis, Memphis, etc.
3. Don't trust everyone you know.  I always work with licensed realtors and turn key companies that have solid reputations.  Took me a few years to find and vett them all, but I did and haven't really been burned.
4. Make sure to purchase your own 3rd party home inspection for each property you buy.  The inspector works for you and can provide a detailed analysis of the home and the state it's in.
5. Don't buy rentals for appreciation.  Go for cash flow.  Make sure to buy low and don't buy an overpriced or over-inflated home.

One of the most profitable things you could do with the $350k is invest in commercial storage. You could put the $350k in as an investment either as a lender or as a down payment on a storage facility. You could also put the $350k as a down payment on a multi-family deal or a large portfolio of SFR homes that will cash flow like crazy. Invest in markets that have high cash flow if you want to accumulate a good monthly / annual income. Once you get that going you can apply for more private financing due to your self-employment income being steady. I wouldn't start flipping houses with the $350k because you don't have any income as you noted. You don't want to gamble all your money away on your first flip and potentially lose it without an income stream. Establish the stable income stream first and optimize your taxes via your CPA, then start flipping after you've established emergency funds, and savings.

@Peter Tverdov

Hi Peter.  I know exactly what you're talking about as I was wondering the same thing a couple years ago.  I use a custom Google spreadsheet that I built to track everything.  I add new columns and rows onto it whenever I need to and have graphical charts showing how many conventional loans and private loans I have, location of properties, and much more on the sheet.  It gets pretty big, but in the end I get used to tracking it all and it's very easy now to find the info I need.  I can easily share it with my wife and she sees all updates I make to it.

There is no dedicated software that I know of to track a custom portfolio so that's why I opted for Google Sheets instead.  Just build all your property addresses in a left hand column, and then all their individual attributes like taxes, insurance, mortgage terms, property manager info, etc in the vertical rows.  You may end up with 40 vertical rows but it will contain everything you need.

Is the seller open to seller financing?  Does she have the home fully paid off?  I have 4 rentals in Indianapolis so far including the area this home is in.  I sent you a PM so we can talk further about it.

I just private messaged you about this.  Could you provide your phone number so that I could ask some questions over the phone?

Here is your hookup @Liz C.https://nreig.com/

Best company I've used for real estate insurance so far.  Highly recommend them.

No, I haven't.  Haven't been able to get Sky on the phone to discuss how all this works.  This still seems too good to be true and I want to see real world examples of his company paying out landlords what is advertised.

@Steve Bracero Investing out of state is a great idea. I do it with the right realtors and property managers on my team. I hate ETF's. They were too wobbly for me when I invested. I would pull your money out and invest in some good turn key rentals in stable markets. Remember buy and hold is not about immediate returns. Your ROI will be over the next 5 to 30 years or more so keep that in mind. The stock market likes to disillusion you into thinking you can make massive returns in such a short time frame.