Offlineok so the first wholesale deal i did last month was for a landlord and it was a try out. he said if you sell this one ill give you everything i have to sell. so now I have $600k of wholesale inventory. it will only be sold as a bulk deal. does anyone know what bulk buyers are looking for any info will be helpful as i work this load of inventory. is there a certain ROI they expect every year?
the seller is stuck at his price and says if they don't sell oh well but i think they are sell able. anyone who has delt with bulk maybe you could answer a couple questions
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How many properties and where are the located?
Mark
I haven't done bulk, but when I prepare multi-family deals I deal with the Cap Rate and the pro forma. You'll need details on the properties, the income and expense and be conservative! While you are gathering that info from the seller and reviewing it, preparing it-- scout for bulk buyers and see what THEY look for and want.
Might be a good idea to tell us what general area these are in and what type of properties the lot consists of. I'm sure you'll have numerous responses.
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176
I have all the info about the properties now. like how much money comes in and how much goes out. the other great thing is the seller has not raised rents in more than 5 years so after a new buyer comes in a slight increase would be OK.
there are 9 properties located in Clairton,PA all are rented the total income per year is $77,100 yearly expenses $9,376 yearly profit $67,724 and the rent value can go up a bit.
He should be on this thread any second. If he can QB million-dollar deals on the other side of the country, he should be able to help you with this. Keep us updated, and let us know when you finally ca$h out! Best of luck to you...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
with your phone number and I'll call you today about these. I'll run numbers and see if we can do a deal.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
I'll let Bill (trustpoint) work this one. He will let the seller know if this is a deal and make an offer. My high dollar buyers are developers. They don't buy and hold. The fix/remodel/ or scrape/build and retail!
Sam, what you have listed as profit is actually Net Operating Income. Out of this has to come the Debt Service,(loan payment) Cash Reserve build up and any other unforeseen expenses. I don't think any buy and hold investor will pay cash for these. They will have a loan of some type. They will leverage their money so there will be that added money expense coming out of the NOI for sure.
Good luck!!
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Sam, I might be interested or have a buyer but the numbers don't add up. If he has 9 properties I can not believe that the expense per property is less than $1,000. I must be missing something. Can you please provide a breakdown of all the numbers for each property, for example, property tax, insurance, vacancy rate, property management fee, etc...
Thanks
Raymond
I just had a buyer ask me if some properties were a bulk deal, and I said no I did not think so, as these were houses I was birddogging for. I really don't understand bulk deals for individual houses, or is it just that they want a bulk deal on the houses you presented? That is my best guess. I hope this is not high jacking the thread. Sounds like Bill will help isneed.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
@Michael-->Thanks for the tip I didn't realize that as this is my first semi bulk deal and i'm not seeing the entire picture but i'm learning around every corner. what would the debt service amount be on a loan of say $500k? sorry for not understanding that i'm trying to wrap my mind around all of it
@Raymond-->I'm obviously missing some info here but I'm new with this sort of deal so i'm sorry for that but i'm trying. Once I get some more info i will update.
Don't feel bad. This is how you actually learn how things really work. BY TAKING ACTION!!
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thanks for all these posts. I'm watching and learning too!
Jill
"When we are grateful, fear disappears and abundance appears." ~ Anthony Robbins
"Do not wait; the time will never be "just right." Start where you stand, and work with whatever tools you may have at your command, and better tools will be found as you go along." ~ Napoleon Hill
Jill
And see what you come up with as I am currently working on a bulk deal of 54 properties in Dallas that I have posted on here in the classified ads for those of you who want to know more about it and may be interested in this kind of deal. So with you doing this type of wholesale deal I can learn some from this too.
Shawn
I shall fear no evil from all the nay sayers as I walk through the valley of real estate investing as I try to make a better life along the way.
Sam, the only way to learn is to ask a lot of questions. I was asking the questions regarding the bulk deal because I don't feel that the owner is giving you all the information you need so that you can market these properties. Your doing a great job just don't be afraid to ask questions and get as much information as possible.
Thanks
Raymond
Any update on this deal?
Sam, do you have the numbers?
Ray
I hear about these through different readings. Hope it all works out for you Sam!
Maurice
In order to lead, you must first learn how to follow!
this is an awesome opportunity both financially and a as learning experience!
Have you asked the seller if he would be willing to owner-finance part of the cost? that would get the attention of many investors, and probably his asking price...
Please keep us posted as many of us can learn from it too.
Wishing you the best on this deal,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
hey guys sorry for the silence I am attempting to work with Bill on this and the seller seems a bit stubborn but i will discuss more after we get things ironed out a bit more. the seller wants more than FMV and does not seem so flexible I'm not sure it will sell but I have to work anything that crosses my path
Good luck!
- Tom