I have a package of 8 single residences that I’m trying to sell. I have it on Craigslist and Loopnet. So far no bites. Before you say it must be my numbers… Let me just say that My CAP is 10% and NOI is $56,000. Asking $550,000. Are there any better or other ways for me to package/market to out-of-towners? This is my first package, but if I can sell it… I would like to do this again.
Selling 8 houses regardless of the cap is a toughie in this financing market.
Selling houses in bulk takes a massive amount of buying power for a conventional purchase, regardless of the price point ($55k/each in your case).
BTW, in this price point, I would guess these houses are “ancient,” bungalow type in neighborhoods approaching 70 years old, no?
I would be interested in buying them, if I didn’t have to get new financing from a third party to buy them.
Remember that the buyer with the money will also be the buyers that want a deal. What’s a deal? It starts at a 2% rent/value ration. If the rent is $500/mo, the unit price should hover around $25k give or take five thousand.
Otherwise, the 10 cap you mention isn’t meaningful to sophisticated readers/investor on this board, because you haven’t listed the income. If you’ve only got 15 to 20 percent for expenses anyone who could buy, wouldn’t, because he would know the expenses on income property, especially on SFR’s can run 50% annually on average over 10 year period. So, unless the income is something hovering north of $112, this isn’t a 10 Cap offer.
That all said, we come back to ability to buy 10 houses. On NOOC conventional financing we’re talking 25-30% down, or $165,000 (at your price), just to get the banks attention, if we need financing. That’s a big chunk of money for someone not already moving into apartment investing with this much cash available, at this stage in the game.
Make these very easy to buy with seller financing, sell them off to owner occupants, and you’ll have a buyer very quickly even settling for Craigslist. Otherwise, plan on about a year of looking for a buyer using more than Craigslist and Loopnet.
BTW again, your first and best marketing strategy, from bitter personal experience, is first getting a sign in the yard. The most likely, prepared buyer is already driving your neighborhood.
Hope that helps.
:beer