J.R. Schoono…, Real Estate Pro in Crown Point, IN

What is the best way to go about selling a portfolio of properties?

Asked by J.R. Schoonover, Crown Point, IN Wed Nov 28, 2012

Would it make more sense to list the portfolio, go directly to a lender who specializes in lending on these types of deals to see if he has any prequalified clients?

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Dear J.R.,

Firstly I am in total agreement with Phillip Sencer, beware of any broker who claims they already have a buyer for your portfolio. None of us here know where the properties are located or the specific of your portfolio. In my opinion your best advice came from Phillip Sencer, Bill Deligiannis, David Hanna, and Dana Schultz. I personally give each of them thumbs up!

Best of Luck with you sales!


Manuel Brown, Broker
iMove Chicago
3 votes Thank Flag Link Thu Nov 29, 2012
Ignore most of what others just said. Just list them individually in the MLS to expose them to the entire world in order to get the highest price. Never listen to an agent who says he might have a buyer because they just want your listing and if they might have a buyer you have no clue what the price shold be or if the price is the best you can get.
3 votes Thank Flag Link Thu Nov 29, 2012
If you want to maximize your return, you should be looking to the market for value, and that means listing the properties for sale individually.
You can market them as a package, too, but you are just handing someone your money if you don't give the properties as much exposure as possible.
There are other factors you don't tell us, like condition,how many properties are involved and what they are, the need to sell, the reasons behind that decision, and the tiime line you are trying to meet.
All of these have a bearing on your choices and which one is best for you.
3 votes Thank Flag Link Wed Nov 28, 2012
JR, go to your local REIA. Pick up flyers. Discern the preeminent investors. Ask them to put your properties out to their buyers for a fee. Obviously, individual sales are more profitable, but you can leave yourself short with some of the less desirable properties. Packages give you leverage. It all depends on how one prefers the winnings, a lump sum or installments!

John Lydic, Founder
REI Free Classifieds
1 vote Thank Flag Link Thu Nov 29, 2012
JR

Let me know what type of properties that you have in your portfolio. Depending on the properties, location, etc.. I may already have your buyer. I have a lot of investors that are ready to buy depending on the properties.




Sohail A. Salahuddin | Broker Associate I Visionary
Innovative Property Consultants Team l Sales and Leasing
Jameson Sotheby’s International Realty
425 W. North Ave. | Chicago, IL 60610
O: 312.929.1565 | C: 312.437.7799 | F: 847.805.6030
"Local Experts, Global Reach"
1 vote Thank Flag Link Thu Nov 29, 2012
As mentioned, better to list them individually in order to maximize value. Where are these properties located and how many properties are available. Feel free to forward to me your properties. Depending on their location I may have one or more potential buyers.
1 vote Thank Flag Link Wed Nov 28, 2012
Your best return is to sell them individually. Team up with agents that are experts in areas the properties are in. Nothing beats local experts.

All the best,

Ivan Sagel
312.515.7823
Ivan@atproperties.com
1 vote Thank Flag Link Wed Nov 28, 2012
Real estate is local and best served by an individual agent who understands the local market. If you have the ability to deal with administrating the sale of the individual properties, you will receive a higher value by selling with local agents rather than as a bulk portfolio sale. Your transaction costs will be higher individually, however, as a portfolio sale you will need to discount it just because it is bulk. I assume you would need to discount it by 10% for a bulk sale and the costs of individual sales will be about 7%.

If you would like a seasoned professional to help you locate qualified listing agents in every market, I would be happy to help you out.

Dena Schlutz
Owner / Broker
Estate Professionals
303-588-7532
Web Reference: http://www.estate-pros.com/
1 vote Thank Flag Link Wed Nov 28, 2012
Is the portfolio with one lender or multiple lenders? This is kind of important.
1 vote Thank Flag Link Wed Nov 28, 2012
All are free and clear.
Flag Wed Nov 28, 2012
Are all of these properties in the same area? If yes, consider working with 1 Realtor, advertise each property independently, and in the notes put that these properties are part of a package.

Just a thought: advertise as both individual and packaged... Package buyers may be expecting a discount... Also if they are currently rented, make sure to put the basic terms in the notes to attract investors.
0 votes Thank Flag Link Tue Jan 1, 2013
I would suggest listing with an agent who has experience handling the kind of portfolio of properties that you have to sell. Are they commercial properties or residential and residential/investment properties? A Realtor with an OICP designation (like myself) is what I would recommend.
0 votes Thank Flag Link Fri Dec 28, 2012
JR,

I would propose your portfolio to an agent or a firm who works with investors and understands the process, however more importantly has a strategy to market such product.

We should discuss this again and I can tell you exactly who you should speak with...




Sohail A. Salahuddin | Founder

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Extraordinary Service For Extraordinary Lives"
0 votes Thank Flag Link Fri Dec 28, 2012
list portfolio and if you need to get it out to good qualified buyers let me know at jmichaels@remax.net and we can work something out to assist
0 votes Thank Flag Link Thu Dec 27, 2012
I work for the brokerage arm of a money manager/equity firm that buys, sells and leases real estate with it's clients' money. They buy portfolios all day.

Long story short, my best suggestion would be to present portfolios to institutional investors, equity firms, experienced real estate investment syndicates and corporations, and the like.

Those with the means, experience and resources to handle a portfolio or properties likely are buying cash or already have their financing in place. Interviewing lenders isn't a bad idea at all, but unless you've developed a working relationship, they won't be able to sell them as well as you can, and you will spend the same time probing them for their qualified clients who are buying your type of asset; where that same time can be spent researching and interviewing and probing actual potential buyers of your type of asset.

I'd say list/market the portfolio as a first option and go the route of finding lenders as a secondary route.
0 votes Thank Flag Link Thu Dec 27, 2012
email me at jmichaels@remax.net is the best way to go about selling a portfolio of properties
0 votes Thank Flag Link Fri Nov 30, 2012
JR,

Thanks for reaching out to m. There are people on this board who don't understand business, nor understand that successful agents have a pool of buyers ready to go, especially in this market.
Looking forward working with you.




Sohail A. Salahuddin | Group Founder

Innovative Property Consultants Group | Sales and Leasing

http://www.innovativepropertyconsultants.com



Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 


O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Locally Known, Globally Recognized"
0 votes Thank Flag Link Thu Nov 29, 2012
FYI, I could care less about your listings. We pull deal together and if you are familiar with commercial real estate and multi-family market you know exactly what I am referring to.
Flag Thu Nov 29, 2012
a portfollio needs a manager..that is what I will do.. sell each unit for the top price.
0 votes Thank Flag Link Thu Nov 29, 2012
I am sure you know everything said here (which is all favtusl) although you have not mentioned anything regarding the speed of sale. It is obvious to say the faster the sale the lower your ROI. Define what result you want and go from there.
0 votes Thank Flag Link Thu Nov 29, 2012
It depends on the location of the properties, if theres loans, etc.

There is a market for people who are looking for a portfolio of properties.
0 votes Thank Flag Link Wed Nov 28, 2012
What do you have? I may have a buyer for you.
0 votes Thank Flag Link Wed Nov 28, 2012
South Side of Chicago. Auburn Gresham, Beverly, Fernwood, South Shore, Bronzeville.... couple in Englewood. Most are turn-key and a few need minor to major repairs done. Most of these are SFH... some are 2 units. Some are section 8 and some are cash tenants. Email me if you would like to review the list. QwikProperties@gmail.com
Flag Wed Nov 28, 2012
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