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I had a great time in Panama last week with many well seasoned RE investors. I purchased a book from Paul Kelly and read most of it on the flight back to California. Its really a great read and he gives very easy to understand break downs on the figures while swapping.
Also,
Jackie spoke about hedge funds that are purchasing houses in bulk. Has anyone had any experience with this?
The reason I ask is because I met an older man that owns 68 homes free and clear but after talking with him, he really wasn’t motivated to sell quite yet. But…. my wife (a mobile notary) gave me a lead to a woman (82 years old) that has 20 homes and she just wants out. She doesn’t want to deal with RE anymore and wants to sell all 20 homes at once. They all have mortgages and are rented out. I am meeting with her soon.
How should I approach this 20 house deal..
Here’s a little recent news (April 22) about some of the major players in that game, and some of the things they’re doing:http://www.mypalmbeachpost.com/news/business/real-estate/new-kid-on-the-blockcorporate-titans/nXLFt/
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There is a narrow window of opportunity to sell bulk property deals to Hedge funds, REITS and Wall Street. Some are already starting to sell things they bought a year ago.
Arcinio, just like I said at the seminar. You need to determine who your buyer)s) will be before you spend too much time on looking for house deals.
For the 20 house deal, it depends on how much equity there is, what the terms of the loans are, and what the cash flow is. If she has taken all equity and put bad loans on the houses ( adjustable rate mortgages) then there is probably NOT a deal there for hedge funds. A local buyer may be interested in buying some with seller financing IF it’s a good fixed rate, non-adjusting loan, and there is good cash flow.
Bottom line, all investors want to know WHAT’S IN IT FOR ME? If there’s nothing in it for them, there is no deal.
I am also considering the long term idea. What if I master lease all properties with an option to buy later. Where can I get information on the forms and “how to” on MLO? Tilney’s class is in September but I can’t wait till then.
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If the loans are decent with positive cash flow form the rents, what if I buy subject to. Do I need to go through title company on a sub 2 deal. What would my cost be?
The ONLY place you can get Tilney’s master lease forms ( which are the BEST) is to attend his seminar. there is no home study course.
A basic lease agreement with the right to sublease will work. See the File Vault for samples.
There’s a lot more to a master lease than the master lease. the most important part is proper tenant selection and setting up the systems Tilney teaches in his class so you have a hands-off, hassle-free rental property
I would not suggest buying subject to.
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