If you are looking to sell a property portfolio, and sell all of your properties in bulk, it is possible to do this online and there are different options available to you. Before doing so, weigh up the various pros and cons and make sure that you are taking the best route to selling your properties.
What is a property portfolio?
A property portfolio is a collection of properties that people own as an investment; an individual has this collection of properties for the purpose of generating income. They could either generate income by renting the properties out, or use them as a source of collateral for loans. Often, people invest in a well-diversified portfolio and include a range of different property types in different locations in order to minimise risk.
Why would I want to sell a property portfolio?
Someone might want to sell a property portfolio if they are looking to free up cash, downscale or if they want to liquidate their assets. In these scenarios, they may want to bulk sell their rental property portfolio. This means that they sell all their properties at once.
Selling a portfolio of properties in bulk is a large undertaking and also has implications for any existing tenants. In the case that you want to bulk sell your property portfolio, there are usually two different options:
- you can sell with the tenancy
- you can complete the sale after evicting the current tenants
Another difficulty that you may face is finding a buyer for each of the properties in your portfolio.
How can I sell a property portfolio?
The most simple options when looking to sell a property portfolio are the following:
- Work with a high street estate agent – you can work with your local high-street estate agent in order to manage the liquidation of your portfolio. If you are doing this, look for a trusted estate agent in your area – one who can offer you expert advice and who comes highly recommended. However, this can be difficult if your portfolio is diversified and you have properties across different locations. If this is the case, you will most likely have to deal with multiple agents. One of the benefits of working with estate agents is that you can usually negotiate good rates. Not only that, you can benefit from the estate agents’ network – for example, estate agents usually know many different professional landlords or developers who are looking to invest in properties in bulk.
- Find a private buyer – finding a private buyer is an option although it is far easier said than done. Unfortunately there is no one-stop-shop where you can find a private buyer who is looking to buy a property portfolio in bulk. But, you might get lucky if you ask around
- Online & hybrid estate agent – working with an online estate agent may not be the quickest option around. However, they are not restricted to a specific location like a high-street agent. Similarly, online agent fees are typically more competitive than high-street agents – rather than working on a percentage basis, they usually charge a fixed fee which can work out to be far cheaper.
Should I work with a professional property cash buying company to sell my property portfolio?
Property cash buying companies, simply put, are companies which buy properties for cash. Working with this type of company can be a good idea if you are looking to make a quick sale as the process is usually quicker and easier than any other method. For example, a typical turnaround time for this type of sale is to receive an offer within 24 hours and to complete a sale within 7 days. Additionally, they can often make a cash offer which could be a benefit.
The exact speed of the sale will obviously depend on multiple factors; for example, if the case is less straightforward, there will likely be a longer timeframe. However, even then, it is likely to be quicker than more traditional routes.
It should be noted that the main drawback of working with this type of company is that you may not receive your asking price. In fact, far from it. These companies offer a quick and easy sale; however, you are looking at around 75-90% of the market value. Thus, if you are prioritising profit over turnaround time, this is probably not the best option for you.
When working with a company such as this, you should always do your homework and make sure that the company is legitimate. Look at Trustpilot and other websites which offer reviews of their services. Working with a company that is registered will help to protect you and make sure that your properties are being properly dealt with.