Opportunity Passing You By? Don't let Occupied or Slow Moving Rental Sale Slow You Down?

by Tim Herriage

Opportunity Passing You By? Don't let Occupied or Slow Moving Rental Sale Slow You Down?

by Tim Herriage

by Tim Herriage

Here is another case of an real estate sales expert quickly helping an investor unlock value and liquidity for existing, occupied rental properties in need of some maintenance, so this investor could take take advantage of a new opportunity.
RELATIONSHIPS
An agent at Investable Realty was talking to a traditional broker who had a client with about 120 affordable rentals, a number of which were rented under housing assistance programs. The owner wanted to sell some of these to take advantage of a commercial opportunity, but these properties were occupied, under-rented and in need of some maintenance. Combined or individually, these conditions discouraged a quick sale. What was needed was an experience investor agent understood the path to a solution.
PRACTICAL SELLER
The seller understood that in order to maximize property resale value, these properties required renovation which was only really possible when the rental became vacant. This meant waiting for leases to expire or evicting tenants and then investing in renovation of the vacant non-cash flowing property. To do this meant delay making a quick sale illusory not to mention lost rental cash flow.
MAKING THE NUMBERS & THE DEAL WORK
Eric Luneborg at Investable Realty has the investment property experience that enabled IR to offer a better solution to the seller by proposing a bulk sale to a single portfolio investor. This involved a discount from after-repaired-value, but eliminated any waiting for vacancies and little to no investment in renovation by the seller. This path could mean the best of both worlds by maximizing value and accelerating time to money.
Lundborg and the IR team analyzed the portfolio by property to arrive at viable cap rate for a buyer that presented an accelerated sale for the owner who quickly approved the plan. The agent quickly found a buyer and completed the transaction that yielded the seller about 90% ARV for all the properties in a single transaction that allowed them to take advantage of their next opportunity.
The new buyer and investor assumed the existing leases, the government assistance responsibilities associated with this million-dollar transaction and captured an immediate 10% to 12% net equity. The lease assumption allowed renovations to occur on the natural vacancy cycle and on the new buyer’s terms. These renovations, now done at the buyer’s discretion, allowed renting to the next tenant at better market rates therefore improving long term portfolio performance.
Testimony to the seller’s satisfaction is the fact they have brought another 40 properties to Investable Realty to present to investors in a desirable rental market.
GO FOR YOUR GOAL
When you buy and sell investment property, investment expert realtors and brokers matter.  If you need to sell quickly, have a tenanted or slow selling investment property (or properties,) expertise in packaging, buying for, and selling to investors is required. Investable Realty is proving to be expert at this.  Can Investable Realty help you? For more information or contact Eric at eric@investablerealty.com – 214-335-1889

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