Why would an investor sell income generating properties?

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.

My $.02 :slight_smile:

Go for it

maybe they decided (like me) that oil well investments are paying a higher return with zero work.

Mcwagner…WHAT!? :biggrin