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Buying an existing Rent Roll?

Hi Team, I am considering starting up my own Real Estate, by purchasing an existing Rent Roll, i.e 50 to 200 properties. Can you please share your experiences/thoughts/suggestions etc... Kind Regards, Svetlana

3 Answers

Start Up

Hi Svetlana,
Firstly, as James mentioned I would assume you hold the correct accreditation/s with real estate bodies to be able to manage a rent roll.
As a first pass commercial review, I would recommend a 1 page business plan or cashflow forecast should be developed that covers 3 key milestones:
1. the income or commissions from a rent roll acquired
2. deduct the operational costs of managing the rent roll, car, promotional advertising to build the book, premises / office rent (if any) etc.
3. From this net position consider whether the net position is generating enough cash to meet your living expenses / income expectations
4. Consider how you will fund the purchase price and then its repayment. In risk terms allow 12-15% cost of funding which reflects a modest equity return
If you are making sufficient returns at this juncture then go ahead with your plan. If not then re-visit your assumptions so that the required bottom line is covered.
Any further guidance is required please reach out
All the best

Darren

My sincere apologies Rafael as I accidentally called you Svetlana (I accidentally picked up her name from the previous posts).

Hi Svetlana, there are a couple of banks that will provide funds for purchasing rent rolls and they usually require a minimum of 200 rental properties or a loan amount of minim $500k. They are many prerequisites involved to gain an approval, for example have the appropriate licences and industry experience. If you would like to know more please feel free to call me Kind Regards James 0439 787 006

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