Marketing Rental Properties To Investors???
I'm a newbie RE investor in Charlotte, NC. I own two properties both leased and generating + CF.
I'm planning on marketing the properties to other investors. Ideally, I want to get fair market value and get my equity out of the properties. Many of the investors prospects want to snag the property at wholesale...it's a good deal at FMV. What is the best way to target buy/hold investors? Does the local newspaper work best? Should I involve a RE agent?
I'm planning on marketing the properties next month. Any help is appreciated. Thanks.
A simple ad with the NOI and the price. Once you get the call, have very good records and a statement for review. Most investors buy LOGICALLY - present the deal that makes sense, and it will sell.
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Scour your local REI groups and make some contacts, that way they may also give you some prop leads as well. Newbie investors who need to get their first prop under their belt will like a shot at it.
"it's a good deal at FMV"....
FMV is an average deal.
I'd focus on cash flow when targeting investors. Present realistic numbers that you can support with documentation.
If you want to move it quickly AND get your price, then carry up to 20% of the price as a second. Makes it easy for people to buy or do a wraparound and let them walk into it that way.
Your comments are very helpful.
I understand focus on cash flow, but my cash flow or NOI may not be the same as a potential investor. They may put down more money, less money, whatever.... How can I predict the investor's cash flow or advertise a realistic cash flow amount?
One of my properties has over $300 +CF. A new buyer may finance 100% and have only $150 +CF.
Again, thanks for any comments.
The NOI (Net Operating Income)- will not change if done correctly and accurately. Keep in mind the NOI ignores debt service.
Gross income less expenses and reserve for repairs = NOI
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