It’s hard to escape the reality. The real estate market has changed immensely in this last decade.
Declining values in real estate have caused multiple foreclosures and an overall devaluation of the housing market. This drop in property values has created reductions in household spending and a general distrust for the real estate industry as a whole.
With so many restrictions in traditional lending practices and complications due to loss of property values, some homeowners are reluctant to contact an agent to assist with their sell.
When both time and quick money are critical factors, many homeowners can benefit from the help of a real estate investor.
The perks of working with an established, reputable, real estate investor are numerous. Investors can offer flexible payment options, such as cash sales, subject to, or lease with option to buy. Since there’s no haggling with traditional lenders, a deal can close in less time- often the seller can chose which day they want to close.
With finances tied up in mortgage payments and basic living expenses, it’s easy to feel trapped in an ugly house full of unfinished projects. But investors have the money and resources to get these projects finished. Most investors will do the walk-through inspection themselves to examine damages in the home.
It’s the investor’s job to find the problems and point them out. But it’s also his goal to fix these issues. Investors are looking for a quick sell. They won’t get into projects with major rehabs, but new flooring and paint is a piece of cake.
Unlike Realtors, investors are not required to have a license to buy property. Therefore, it is the job of the seller to research the investor’s background and references. For every honest, hard-working investor you discover, you are sure to find a few who are just there to close a deal, or take your money and run. Don’t let a few bad eggs wreck the chance for you to find success as an investor.
Investors are in the market to help people, but they also have to make sure a deal is worth the investment of their resources. Investors carefully establish a budget for each deal to get a good return on their money. This budget will eat into about 12-15% of their profits for each sale. Money goes into rehab materials and the labor force needed, closing, transfer fees, insurance and taxes.
Home owners often feel their house is worth just as much as the next door neighbor, regardless of what the property actually looks like. If a homeowner is looking to get top dollar for their home, an investor might not be a good match. Homeowners have to put aside any emotional attachment to the home and see the property for what it’s worth.
As an investor, the selling point is the convenience you offer to the homeowner. You are a one-stop shop. You do the inspection. You do the rehab work. You pay the fees and you hand over cash quick.
In a tough market, selling a home can be a daunting task. Sell your connections and resources as just another service in your professional arsenal.
Buying a home is often the largest purchase one will make in their life. But it can be just as overwhelming for the homeowner to take on the task of selling their investment. Investors are there to educate the seller on the process. Of course, the investor wants to make money on the deal, but shady practices aren’t going to get you returns and will tarnish your good name. Assure your contact that you are there to help. Remember, we buy problems, not properties.
Last modified: September 5, 2018