Now, we are already at $11,800 in the difference between a Traditional sale VS. Investor sale but let’s look at the hidden expenses most sellers never calculate;
Holding Costs $ 6,300 $0
(Realtors Nat’l average = 6 months to sell)
If you have a vacant home this is really a factor. Every month that goes by you have to make yet another payment. You keep spending money yet the price of your property stays the same. Holding costs are very real costs. DO NOT take this number lightly. Statistically speaking, it takes an average of 6 months for a realtor to finally complete a sale.
REPAIRS $ 2,000 $0
In some instances the lender will require that repairs be done before they will approve the property. In general, a mortgage company won’t lend money on home in disrepair. In other instances you are simply NOT going to sell your house to an owner occupant if you don’t fix it first. This can be a huge stumbling block for a Seller who is ill equipped to deal with contractors and repairmen. An investor is set up for doing repairs and even complete remodels. Even a house in GOOD REPAIR can need updating… That shag carpet from the seventies might be fine for the current owner but it will not fly in today’s market. The same goes for Baby blue and Pink bathtub tiles and countertops, sun harvest gold appliances and olive green drapes. But let’s say your home is in pretty good shape and doesn’t need much in the way of repairs. Above I have added $2,000 for repairs… rarely does a home need ZEROE in repairs.
TOTAL COSTS to sell… $ 20,300 $0
TIME & HASSLE IS THE DIFFERENCE!
In this example you could sell your home in the traditional method for $100,000 or sell your home to an investor for $79,700 and come out the same. So what’s the difference? TIME & HASSLE is difference! It is easy to understand why uneducated Sellers would shrink away from an offer of $79,700. As an educated Seller you understand that the two offers are exactly the same given TIME. You decide if you want to gamble on a faster sale or the remodeling talents of your uncle but as an educated Seller you now understand you have a choice. The INVESTOR CHOICE allows you to make the same relative amount of money and be done with it – TODAY!
I would like a CASH OFFER on my property
OTHER WAYS TO SELL
An educated investor knows 101 ways to structure a deal. The truth is, there is no limit to how many ways a deal can be written up. A good investor knows the art is to find the structure that suits YOUR needs. A good investor can help you but he has to ask a lot of questions. After all, you’ve been dealing with this real estate for years and they have just met your property. Don’t be surprised when an investor asks questions. Talk to your investor. To adequately help you achieve your goals they will have to know everything of importance;
Your time line
What your goals are
Good things… Bad things… everything!
The list could go on and on but here’s the point; the more the investor knows about your situation and the current situation of the property, the better equipped they are to help you achieve your goals. Details you deem insignificant can be huge revelations to an investor that knows the ins and outs of real estate.
Did you know you can give your payments book away?
Many investors are willing to “take over payments” on your property. As always you’ll want to deal with an investor with a proven record and proven integrity but know this;
Many a struggling Seller has been freed from their financial pressures by handing their payment book to an honest investor.
Did you know you can sell your property and receive monthly payments… for years? Owner financing is a great way to sell your property. This particular avenue of selling has some benefits you may not have thought of. Example: If you take a lump sum for your property you’ll have to pay taxes on your gain. In certain instances this can be a sizable chunk of your money GONE over night. If you are interested in re-investing the money left over “OWNER FINANCING” makes perfect sense. Simply leave the money where it is and accept payments from your BUYER for X amount of years at an agreeable... Sell your house on payments. YOU WILL sell your house faster if you offer to take payments. The best part is that you’ll have a safe and secure investment using a property you know well as the collateral.
Sell your Property “AS – IS”. Did you know that YOU DO NOT have to have your property in mint condition to sell it?
Your cash4Houses.NET associate will be happy to purchase your property with all its defects and imperfections. In fact, that is what many investors specialize in. Dealing with contractors and supply warehouses for materials can be a rough and rocky road for a private individual that does not deal in real estate and construction every day. Many a seller has been sunk by the pitfalls associated with remodeling. Save yourself the time and the aggravation and leave it to the pros. As we’ve discussed previously, if you really sit down and do the math. The average person actually loses money when they start doing their own repairs. The main reason is that they are not equipped to deal with crafty contractors that don’t have your best interest at heart.
Tell Your Investor Why You’re Selling!
If you are selling a property because you need a car… say so! If you are selling so you can buy a fishing boat… tell them! If you’re selling because you need a bigger home… let them know! You just might be surprised at the resources some investors have. I cannot tell you how many times an investor has solved a dilemma without using MONEY. As long as everyone gets what they bargain for… then why not?
I hope this has given you some insight into the world of real estate investors. They offer unique options. Here are a few thing to remember when contemplating the sale of your property;
- A good investor will never ask you to do anything illegal.
- A good investor will always put everything in writing.
- A good investor will give you more than one option when possible.
- A good investor can make a decision very quickly.
- A good investor can close as fast.
- A good investor will save you time & hassle.