Sell Your Whole Property Portfolio To Us

Sell property portfolio to us!

If you're looking to sell your property portfolio, then you're not alone. Landlord sales have spiked, and according to This Is Money article:

"The proportion of landlords listing property for sale at the start of this year jumped by almost 50 per cent compared to last year.

In January, 25,049 homes were listed for sale that were previously rental homes"

But, not to worry! You can sell your whole property portfolio to us quickly, for cash, with no stress or hassle.

You’ve spent your time amassing a portfolio of properties, and now you've decided it’s time to initiate the exit strategy.

As an investor, there could be lots of reasons that you want to offload your portfolio, or even part of it, whether that be to free up some capital or enjoy your retirement without worrying about tenants.

Before we start digging into this topic, selling your portfolio isn’t like selling a single house, especially if you have a lot of properties.

It can often be a lot more complicated and expensive, depending on the route that you go down, so in this article, we’ll touch on everything you should consider, some of the problems facing how to sell your portfolio and anything else you should consider.

Table of Contents

• What's considered a property portfolio?

• Is it hard to sell a property portfolio?

• How can you sell your portfolio?

• Should you sell your property portfolio?

• How to value your property portfolio

• Why choose us?

What’s considered a property portfolio?

A property portfolio is a collection of properties that are owned for investment purposes, which is either by a company or an individual.

Investors often seek financial freedom, and a single property is not often enough to achieve this goal, so they continue to grow and seek more property purchases to invest in – and therefore they naturally grow a property portfolio.

This is the aim of the majority of Buy To Let investors, as it diversifies risk when you have a vacant property and also increases cash flow.

Is it hard to sell property portfolio?

Selling a single property is hard and time-consuming enough, now imagine amplifying that by however many properties you have in your portfolio and not to mention, you might have tenants, which can further complicate things and limit who you can sell to.

Selling a property portfolio is obviously harder than selling just a single property. There’s a lot more to consider, and if you have tenants, it might limit your pool of potential sales options.

The aforementioned landlord exodus could work against you, increasing the competition, with the higher mortgage rates and increased taxation causing a short-term influx of ex-rental properties on the market.

With all of that being said, it isn't an impossible task, but being forearmed is forewarned when it comes to assessing your exit strategy - and it's worth knowing what the challenges and complexities involved might be:

• Coordination: It requires a lot of coordination to sell multiple properties at the same time, you need to know everything about them and remain organised. Keep a spreadsheet of the commonly asked questions, like tenancy details, location and condition details.

• Legalities: There are more legal challenges when it comes to selling a portfolio such as coordinating multiple transfers of titles and various tax implications, but So Legal has an article that features "key legal considerations in portfolio sales" that provides some more detail and context around this.

• Identifying the type of buyer: This can help you decide ultimately how you choose the sell the portfolio. What we mean by that is if you have a rather large portfolio, it will only appeal to a certain pool of buyers, but splitting the portfolio up may attract more interest. There are pros and cons to both sides of the coin; mostly that selling the portfolio as a collective will save you a significant amount of time, but you will likely have to discount it significantly to appeal to that type of buyer.

• Putting in the time: That leads us nicely into the next point, to sell the portfolio you really need to put in the time - you need to find out everything about the properties, keep detailed records, and be available to fill in all the required documentation.

• Tenancy management: Make sure all your tenants are happy, and address any issues or notices that you know of before you go to market; it could severely impact the sales process, costing you time and money. If you do decide to sell without your tenants, then keep in mind the legal requirements around tenancy agreements.

• Financial preparation: Consolidate all the information of income, yields, service charges, ground rent and more. Other landlords will purchase your properties, or portfolio, based on this information; it's very important that it's accurate.

• Compliance checks: You need to ensure all the properties meet the appropriate EPC ratings and safety requirements, especially if you are selling them with a tenant in situ.

How can you sell your portfolio?

When selling a property portfolio, you have a couple of options or approaches that you can take; each one of them has different pros and cons.

Should I sell my property portfolio

So, before you jump the gun, should you actually sell your portfolio?

Like we’ve talked about, selling a property portfolio isn’t as straightforward as just selling just a single property.

And it's because it's completely true. Whether you should sell depends on a few things:

• Your personal situation: Are you selling to unlock financial freedom or retirement? Then that's something personal to you.

• Underperformance: If you're selling due to underperformance, then that underperformance is likely to be reflected in the price you can achieve for the portfolio; landlords care about yields. It's worth considering if it's possible to increase rent to improve these.

• Market Conditions: It goes without saying, but do your research & try to time your sale at the top of the market.

• Regulation Changes: This is common, with tax changes specifically, which often price landlords out of the market. You need to ask yourself, "is it the right time to sell or should you hold off?". As soon as the regulations change, the market will react, and it's likely you might be selling at a less profitable time, whereas waiting for the initial shock to subside might increase profit.

Further Considerations:

There are a couple of things you should consider when you’re looking to sell a portfolio, which you might not have to consider with a more typical sale, like:

• The number of houses you have

This matters a lot! If it’s just a two or three-property portfolio, you’re probably better off if you have the time and money just selling through a traditional method like an estate agent.

Selling a large portfolio can be challenging though, and limit your options, particularly if you have tenants, then it might not be as straight cut and you’ll have to look at some of the other alternatives we’ve mentioned before.

• Do you want to sell it all at once?

Again, this kind of ties into the number of houses you have, but if you have several, do you want to offload them all at once, or in phases?

There are benefits and shortcomings to both sides, if you plan on offloading it all at once, you’ll get all the equity out quickly – but you might have to pay more in tax and take a reduced offer.

Whereas if you offload it in parts, it obviously will take longer to free up the equity and probably take more time and effort on the sales side, but you can reduce the amount you pay in tax if you spread it over a few years and you can achieve a higher overall value.

• Time vs profit

This leads us nicely into the next section, the biggest thing it comes down to when selling your property portfolio is how much time you want to put in.

The more time and effort you put in to selling and offloading your property portfolio, the more you will ultimately make. On the flip side, you can sacrifice some of your profit and offload the portfolio to a company like ourselves, selling it in no time at all.

It really depends on how you value your time!

How to value a property portfolio

A lot of property investors we meet go the wrong way about valuing their portfolios. They will value it as a business asset, trying to sell it based on the profit it is making as an overall collective.

The problem with that is a property often doesn’t work in that way, people might view the properties in a different way – not necessarily renting them all out, there’s also the whole aspects of tenants and their agreements.

With property, the way it tends to work is you’ll sell them for the property's market value, in which you can get a RICs survey to better understand – although if you have a big portfolio, this could be a costly exercise.

What you also have to consider, is the chances are, another investor or sell house fast company won’t want to pay full price, why would they? You need to make it more appealing, otherwise, investors would just pick and choose their portfolio from the open market.

Keeping all that in mind, valuing a portfolio isn't always as straightforward as a single property.

There are a couple of ways that you can evaluate how much your property portfolio is worth, but in the end, it boils down to how much someone is willing to pay for it as a package. It’s always worth getting an idea of what the overall value of the portfolio is, and there are a few ways you could go about this:

Research the market yourself

The thing that you should always do is work out how much you actually think your portfolio is worth.

Look at each property on its own individual merit and look at the comparable in the area to try and determine the value of the properties & as a whole. You’ll then also need to apply a percentage discount in order to make it attractive enough for other landlords or investors.

Get RICs surveys

Another option, but there will be a cost associated with it, but an increased accuracy of the valuation, is to do a RICs survey on your properties.

This will give you an accurate value, from a neutral surveyor's point of view – and it also tells you of any issues the property may have. Again, you’ll also have to offer a decent discount to make it appealing.

Consult an expert

If you are still unsure, you should consult an expert. This could either be an estate agent that specialises in selling portfolios, or a investment sourcing company.

Why choose us?

Another option you have, you could talk to us!

We're a property buying company, specialising in buying houses quickly - and portfolios are no exception. We're happy to help you through the whole process, whether you're looking to sell your whole portfolio or only part of it, we can either buy it directly for cash or help you sell it to our investor database.

There’s absolutely no obligation to sell, and we’ll provide you with a valuation and ultimately offer on your portfolio, quickly.

You can sell to us, and we’ll aim to buy the whole portfolio within 7 days – or you could use the offer as a basis to move forward and have a figure that you expect to achieve.