Dallas-Fort Worth Real Estate Investor Club

Liquidating portfolio

  • 01 Apr 2019 11:51 AM
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    Message # 7255032
    Shannon Bonneau

    I'm considering the liquidation of my rental portfolio due to family health concerns and need advice.

    I self manage most of these and my original plan was to keep these investments indefinitely for retirement.  I don't have an exit plan and now I need one.

    Portfolio consists of 1 SFR and 3 complete duplexes with gross rents of $9,458/mo. 

    • 1 SFR in Grayhawk neighborhood of Frisco built 2005 currently rented for $2,275.  No deferred maintenance. 
    • 1 duplex in The Colony built 1982 currently rented at $1350/$1375 ($2,725 total).  Upgraded with no deferred maintenance.  
    • 1 duplex in Sachse built 1982 currently rented at  $1166/$1168 ($2,334 total).  Some recent upgrades with some deferred maintenance. 
    • 1 duplex in Sachse built 1982 currently rented at  $1174/$950 ($2,124 total).  Some recent upgrades with some deferred maintenance on unit A, unit B in need of complete overhaul. 

    Liquidating via real estate agents or wholesaling is not desirable due to the high costs.

    What would you do?

    Thanks,

    Shannon


    Last modified: 05 Apr 2019 2:02 PM | Shannon Bonneau
  • 01 Apr 2019 1:40 PM
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    Reply # 7255374 on 7255032
    Neil Aggarwal

    Some of my clients might be interested. Any idea what you want to sell the entire package for?  An investor is not going to pay retail.

    Thank you,
      Neil Aggarwal
      Property Financing, LLC
  • 01 Apr 2019 9:41 PM
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    Reply # 7256089 on 7255032
    Shannon Bonneau

    I could break them up over a few years time and sell retail minus the 8/9 percent in closing costs.

    I could sell to an investor and lose even more.

    Both of those are expensive routes when you look at the profits being eaten and something I'd rather avoid if able.

    I'm looking for some "out of the box" ideas if there are any.

    • Use as equity to "buy" my way into a larger deal that can be professionally managed.
    • Partnership
    • Hand the keys to a PM that is reliable, inexpensive and trustworthy (from my experience...you can pick 2 out of 3)
    • etc
  • 01 Apr 2019 11:13 PM
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    Reply # 7256240 on 7255032
    Robin Carriger (Administrator)

    Sounds like you want to sell them for a retail price without using a Real Estate Agent.  The following is not legal advice.  It's just my opinion.

    If you have plenty of time and you don't need to get all your equity out at once, you can sell to owner occupants via owner financing.

    If you go that way and still owe money to lenders who have liens against these properties, using the "subject to" strategy should be considered.  "Subject to" deals can be very profitable, but there are lots of pieces to the puzzle.  If you'd like to know more about all those puzzle pieces, let us know, but be forewarned that "subject to" deals are not for the faint of heart.
  • 02 Apr 2019 2:51 PM
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    Reply # 7257588 on 7255032
    Shannon Bonneau

    I guess I'd need more information regarding "subject to" sales.  Never heard of them.

    How long must the owner financing be?


    Last modified: 02 Apr 2019 2:56 PM | Shannon Bonneau
  • 03 Apr 2019 8:35 AM
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    Reply # 7258574 on 7255032
    Robin Carriger (Administrator)

    Shannon,

    Feel free to give me a call at 817-300-1132.

    Thanks,

    Robin
  • 04 Apr 2019 1:27 AM
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    Reply # 7259786 on 7255032
    Kan Boonme

    Shannon,

    I would like to discuss some options with you please give me a call. 940-367-3075

    Thanks 

    Kan Boonme
  • 04 Apr 2019 6:17 AM
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    Reply # 7259936 on 7255032
    Jesus Galaviz

    Do all of the deferred maintenance, bring all of your rents up to market, and sell via an agent.  If you do the math, you will probably find you will make the most this way.  I am almost done liquidating my rentals, and this method has worked for me.
  • 04 Apr 2019 7:45 AM
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    Reply # 7260034 on 7255032
    Tim Cook

    Shannon,

    I know you've had several responses already but I'd love to speak with you as well about Subject-to and Owner Finance.  I'm a master at both and teach both strategies and have been doing them for the last 19 years.

    If you need me I can be reached at HouseBuyer@IBuyNorthTexasHomes.com and 817-599-8058.

    Tim Cook

    Last modified: 04 Apr 2019 9:41 PM | Robin Carriger (Administrator)
  • 05 Apr 2019 12:55 PM
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    Reply # 7262056 on 7255032
    Shannon Bonneau

    Thank you for all the replies.


    I'll be responding to each of you privately.


    Shannon
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