Free Report: How To Sell Your House Fast!
Do you need to sell your house, but nothing is happening? Are you beginning to believe that you may not be able to sell it? Are you afraid that if it does sell it’ll take an act of Congress or a bundle of money to get it done?
There are literally dozens of reasons people need to quickly sell a house, from divorce to relocation, and just about every reason in between. Rather than let your surging blood pressure and mounting frustration rule your life, consider another option: call in a professional that can solve your problems and give you peace of mind. What I’m talking about is bringing in a real estate investor.
What is a real estate investor?
A lot of people have a misconception about what real estate investors are – and what they aren’t. The phrase “real estate investor” sometimes conjures up mental images of an international jet-setter who’s rolling in cash and hops from deal to deal, sticking it to people and stuffing his pockets with piles of cash, leaving hapless victims in his wake. That couldn’t be further from the truth.
The typical real estate investor is someone just like you or me, someone with a normal life, a family, hopes, dreams and aspirations. Just as a carpenter has specialized knowledge and experience about building things, a real estate investor has specialized knowledge to help people who need to quickly sell their property. This knowledge is beneficial to you regardless of your situation or your reasons for needing to sell quickly. Now let’s compare this knowledge to what you may have encountered trying to sell by yourself.
The problem with selling by yourself
Trying to sell your home by yourself can be loaded with pitfalls and missteps you can make along the way, as you may have already discovered if you’ve been unsuccessful so far in selling your house.
If you’ve been trying to sell, you’ve seen how daunting the process can be: running ads, property cleanup and renovations, finding time to show the house, staging your property, etc.
There are literally dozens of details to be worked out and you might feel like you don’t have the faintest idea as to where to start. Without a degree in marketing it’s difficult to know what you need to do to attract possible buyers, and then once you have someone that is potentially interested in your home, you have to be ready, willing, and able to engage in the difficult business of negotiating price and terms. If you’re lucky enough to get an offer on your home, you have to play the waiting game for the buyer to get financing. If they can’t get loan approval, you have to start the process all over again with yet another buyer.
It can take potential buyers weeks to find out that they have been unsuccessful in obtaining financing, so instead of getting your house sold, and allowing you to get on with your life, you find yourself playing an endless waiting game. Your life is on hold at this point and your plans are at a dead stop.
On the other hand, maybe you’ve tried listing your home with a real estate agent. Despite the fact that they take a big chunk of money in commission if they sell your house, many times a house will sit on the market for months – even years – with no results. Whether it’s inexperience or just lack of motivation to find a buyer for your house on the agent’s part, it’s really no skin off their back if they don’t sell your house. Meanwhile, though, you’re stuck paying a mortgage on a house that’s just keeping you from moving on with your life.
The Benefits of Working With An Investor
There are a lot of tangible benefits to working with a real estate investor in selling your home, not the least of which is the experience that an investor has. While you may only buy and sell a few houses during the course of your lifetime, a real estate investor may buy four or five – or more – in a month, sometimes even in a week. As a result of this familiarity, he or she will know of multiple ways of moving your home that will be beneficial to both you and the investor.
By leaving the details to the investor, you’re able to get on with your life. If you want or need to relocate out of state, complete a divorce, buy another property, etc., you can do that without being tied to the house or the seemingly endless details that go with it.
When you work with a real estate investor, there are different solutions they may present, depending on the situation.
Different Ways of Working With an Investor
One of the great things about working with an investor is they have a variety of “tools” at their disposal for finding solutions to real estate problems.
For instance, sometimes the situation is pretty straightforward – the property has significant equity and just needs to be sold quickly. In that case an investor might purchase the property outright from you. Other times the situation may not allow for that. There are a handful of other options available, and the options will vary from one investor to the next, depending on their specialties. But here are a few possible options:
When a real estate investor “lease options” your house, you are simply giving the investor control over your house for a specified period of time. The period of time can vary, but it’s beneficial to you because you have the peace of mind in knowing that the investor is going to be paying you (or your mortgage) every month for the house, which is especially helpful to you if you have existing financing on the house or are relying on income from the house for monthly living expenses.
Their goal typically will be to find someone who wants to buy a home but can’t today for whatever reason, such as a credit issue or a recent job change. Potential tenants are rigorously interviewed and screened so that only serious tenants are left, whom the investor believes will take good care of the property and be able to buy it in the future.
While a tenant is living in the house and making monthly payments, they are paying the investor and the investor is paying you or your mortgage company. You or your mortgage get paid regardless of whether the tenant pays. So you get paid no matter what and the investor has to deal with all the headaches.
Some people may feel nervous about having someone living in their home, but keep in mind this is not a typical “renter”. It is someone who is serious about buying the home and generally puts down a significant deposit with the investor to prove it. They will view the home as their own, meaning they will take care of it and possibly even make some improvements or minor repairs, things that will increase the value of the home. Their goal is to buy the property as soon as they’re able to get financing.
Unlike a typical renting arrangement, generally the tenant will be responsible for minor repairs, so you don’t have to worry about any of the hassles that typically come from renters. The tenant will either handle minor things themselves or contact the investor, leaving you to focus on more important things.
You can relax and leave the details to your real estate investor because if any damage is done to the house, the real estate investor will make any needed repairs. In any event, it’s extremely rare for there to be a problem because of the rigorous screening and interview process candidates must go through, as well as the fact that they have put down a deposit.
If for some reason the tenant opts not to follow through with the purchase, the investor will find a new tenant for the property. Again, this places the burden and the hassle of finding a tenant on the real estate investor, which for you is a win-win situation.
Another way that an investor will sometimes take possession of your home is through what is called a “subject to” agreement, which simply means that he or she will take over ownership of the property subject to any existing financing there may be on the house. The investor will pay you or your mortgage company, which is a win-win for both parties. It is very similar to the Lease Option method described above but there are some differences, primarily in the paperwork.
A third method is an outright cash purchase.
Sometimes an investor will simply pay you cash for your house and will take title to the property right away. This usually results in you giving the investor a good price for the house, and in exchange, he or she will pay cash and buy it immediately, frequently with a very quick closing. This gives you the luxury of being able to completely separate yourself from your property quickly. If you need the cash more than you need your full asking price, this might be a good solution for your problem. This is not always going to be an option, especially if you don’t have a lot of equity in your house. But it definitely does happen when the situation calls for it.
As stated previously, there are many different ways of working with an investor. The specific method is going to depend largely on the situation and what the investor believes is the best method for your house. It’s important to realize that because your real estate investor has been around the block so many times, he or she will know what situation is called for based on the specifics of your house.
In conclusion, working with a real estate investor beats “going it alone” for a lot of very good reasons. You don’t have to worry about marketing your house, advertising or screening tenants or worrying about any of the mountain of paperwork details associated with selling a house.
You simply bring in a seasoned veteran who knows the ins and outs of real estate and let them do what they do best: Find qualified buyers for your property.
The real estate investor will place a prospective buyer into your house by utilizing the method that will work best depending on your own very unique set of circumstances.
Because a real estate investor has on-going relationships with other real estate professionals and does ongoing marketing, they will be able to find a good tenant who is in need of a house like yours. This gives the tenant the pride of ownership while they work to correct any credit or employment deficiencies that might be preventing them from getting a loan.
Very frequently tenants want to make improvements to the property that will increase its value, which is good for you. If for some reason the tenant fails to complete the purchase, you can relax with the knowledge that you’re getting paid. The real estate investor will simply find a different tenant for the property if something happens where the tenant doesn’t complete the purchase.
By selling your property with the assistance of a seasoned real estate investor, you don’t have to deal with any of the associated paperwork or tenant headaches. You can get on with the very serious business of living your life, without any of the associated headaches.