Advanced Investor Question
Hey gang, I have a friend that is an investor realtor. She just picked up a referral to help an investor liquidate all his investor properties, most of which are in Atlanta, GA. A couple are very large (28 unit apartment and 16 unit townhome complex). She came to me and asked advice on how to market this to the folks that would most likely be able to purchase it. I offered a couple of ideas:
First she needs to know the ins and outs of the performance of the properties. I.E. the vacancy factors, rental history, appreciation history, taxes, etc. She can then plug this in to a model I have that will calculate everything she needs to know regarding this property. This model will factor in interest rate, taxes, depreciation, recapture tax, capital gains, etc. It then kicks out an after-tax-yield that ultimate is the meat and potatoes of the entire investment based on a selected amount of years.
What else does she need to be able to provide so that a saavy investor that has the resources to move forward with something like this could move forward pretty quickly? What advice should I offer with regards to marketing an opportunity this for other investors? On websites? Perhaps advertise in local investor newsletters? Basically what is the best avenue to get this investment opportunity out there?
Thanks in advance. Any input is greatly appreciated.
Brian
Wait a minute, Brian. Your friend is an investor realtor but doesn't know how to market this property? Are you sure this isn't an ad disguising itself as a question?
About 2 years ago, I was knee deep in an investor's illegal flipping scam... was asked to help devise mortgagee approved, preforeclosure short sales for a handful of property... props that had been flipped a few times within a few week's time... and had an inflated value of 250% of their actual, FMV.
Be careful in Atlanta.
[addsig]
Hey, I suppose I could have clarified. She works primarily as a buyer's agent for a handful of investor clients, helping them find good rehab opprtunities, usually REO's and then listing the properties after the project is completed. She has simply never been asked to list a large amount of properties for one investor at one time and also has never listed a multi-unit either. I was just asked to offer advice on how to market.
Any input is appreciated.
Brian
Recently here in the Des Moines Iowa area, an investor died, and the family was forced to liquidate the properties to pay estate taxes (very poor planning)...anyways, they setup an auction for the properties, advertised it in most of the lists, and the properties sold very high, I'm talking 4-5% cap rates. The properties varied from a few single families, a few duplexes, a few four plexes, some conversions that were 3-8 plexes, and some 8-12 plexes... It worked out VERY well for the family
With any rental I want to receive itemized income and expense information. I want to know what utilities the landlord pays and what the tenant pays.
I usually request to see a copy of the Sch E because it is easier when dealing with unsophisticated landlords and realtors.