I was talking to a friend of mine the other day and he shared with me a listing for a residential property for sale. I checked it out and turns out the current investor who own the property also owns 17 other houses in the area. He is selling all in a package or individually, but I am a little confused. Why would an investor sell his LLC with 17 properties that are leased and generating income? I cant help but think something is wrong them or they are not performing financially…why would i want to buy them?
They could need the money due to a death, disease or divorce in the family? They want to cash out now why the long term capital gains rate is at 15%? They want to retire? They don’t like being a property owner or landlord - aka they are burned out? They bought the properties for 1/3 of what they’re selling them at, and now they want to make a profit? They want to get into another form of real estate investing or into the stock market and they need the cash? There could be a zillion reasons.
You shouldn’t worry about why someone is selling a property, as much as if it is a good deal or not. If it’s a good deal (do the math and check the property conditions), then buy them. If it’s not a good deal, try to negotiate a better deal and if it does not work out - move on.
I have found a couple of properties that i am trying to teach myself about investment analysis and profitability projections. If I email/pm you a numbers breakdown on a property and my rational that it will will turn a profit. Would you be willing to give me some constructive criticism on my analysis?
You know, the more I learn on Reiclub.com the more I realize that success in real estate is not “learning secrets” but growing up the chain of knowledge from previously narrow assumptions about business.
Go for it
maybe they decided (like me) that oil well investments are paying a higher return with zero work.