met with another investor who wants to sell 16 rental houses. He’s 62, has a house in Florida and wants to get rid of his properties and move. I met with him yesterday. He said he would sell them on contract but wants to cash out in 2 years.
I have no idea how to approach this deal and could use some advice. Where do I begin? With the previous deals I’ve done it goes something like this…I get information from the seller, arrange a time to look at the house, and make an offer. He wouldn’t give me any kind of idea about what it would take to buy them. Wouldn’t even throw out a number if I could pay cash what’s the least he’d take for them.
I will be starting to look at these properties. I’m looking for advice on what I need to do to prepare an offer that would make sense.
How do I approach this deal and what kind of due diligence do I perform? According to the seller the properties don’t need much repair with the exception of 2 or 3. I was also given the rent for each property and it looks like the current rent is close to the market rent for this area.
I don’t believe the seller has kept much for records in terms of repairs completed, occupancy rates and that kind of think but will be checking this out for sure.
Could use help with this huge potential deal – Thanks!