Has anyone here had any experience with bulk purchasing [as in ten properties or more in the one hit]. I was curious as to
A] what sort of discount would a company developing a new estate give for such a purchase
B] what sort of finance you would need to arrange and
C] how one would go about arranging such a dealI figured with that sort of purchase thier would be ample room to negotiate a heavily reduced price as well as a better than average loan that could result in a large number of brand new CF+ IP's at once.
This is WAY above my level but it has got me curious all the same.
Any thoughts or experience out their?
Like anything in life, everything is up for negotiation. You would have to try and find out how motivated the vendor was. It might be that you are buying the first 10 in a big development and the developer needs the sales in order to get the finance. On the other hand the developer may be getting so many cash offers for his properties he would not be interested in offering any discount. Why would he if he didn't need to?
Talk to as many people as possible and take the time to really listen to their answers. It's amazing how much agents reveal when you just say nothing.
My own experience was a samall development of 9 units going for $330K each. On the first day of selling I offered $600K for two and the agent and the developer nearly bit my arm off, as it would be a good selling ploy and less work to sell. As it was I didn't go through with it, but it taught me a lot and I probably should have started lower.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
