Here’s Why Selling Your Portfolio to a Real Estate Investment Fund Might Be Your Best Move
So, you’ve created a performing rental property portfolio and you’re ready to sell it.
This means you’ve got just a few options to sell:
1. Sell each property as-is with tenants inside
2. Remove the tenants and sell each property as-is
3. Remove tenants, clean up the property, then sell on the retail real estate market
Depending on how quickly you want to liquidate your portfolio, each option listed above will be a long, drawn-out and cumbersome process.
Selling each property with tenants inside is tough to do because homes are sold quickly when they’re vacant. Working around a tenant’s schedule for showings can cause issues with the tenant and delays in the sales time.
Removing the tenants or waiting until their lease is up takes even longer and creates a gap in the rental income while an owner is waiting to sell.
By far, the most expensive and the longest option is clearing out the tenants, rehabbing the property and selling it on the retail market. This could take years and years with a large portfolio.
There is another option that is fast emerging in our market and
Most investors have never considered selling to a real estate investment fund or even how to find one.
Real estate funds are actively purchasing property portfolios for several reasons. They are often mid-sized to large corporations and don’t have the local knowledge or time to put together a portfolio from scratch.
Real estate funds have millions of dollars available and need to spend the money in large purchases- buying properties one at a time is just too slow for these groups.
That’s right, a real estate investment fund can often come in and purchase your entire rental portfolio in one large transaction.
This is invaluable for owners who just want to sell and don’t want the headache of prepping properties or removing tenants in order to sell.
With real estate funds, owners can move quickly from offer to closing without having to disturb or disrupt their tenants. Rental income doesn’t stop and the properties can be seamlessly transferred from one owner to another.
If you need help selling your Metro Detroit rental portfolio to real estate investment funds, contact our office at myrealestateteam1@gmail.com. We’d be happy to help you immediately!
Good luck and happy investing!