The real estate market is tough for many, but none more so than those desperately seeking property portfolio buyers. In some cases banks have hiked up lending rates on property portfolios in turn creating a negative cash flow situation for the owners.

Having one property in negative territory can be painful, but a portfolio of 20 or 30 properties can be pretty much terminal. That said there are some options to exit from an unprofitable portfolio. One such example is to sell on a delayed completion to a specialist investor (a property portfolio buyer) , this works be the investor taking on the negative profitability of running the portfolio on a day-to-day basis, then executing the purchase completion at some time later (when the finance market is back to normal).

The key for the property portfolio owner is finding one of these specialist buyers, there aren’t too many of them out there, but they do exist. One company acting as an agent for these portfolio buyers is RM Properties, there are others, a quick search on the net will find a few.
So, in summary, even in a tough property market there are always buyers to be found for every seller, you just need to find a decent middle agent who can make things happen.

This entry was posted on Saturday, October 10th, 2009 at 11:25 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.