There are so many variables that come into play, I am afraid to even give advice on this one. What I can say is you (just might) want to establish a connection with a good RE agent or RE lawyer to sell the property quickly. You can multiply the power of you cash funds by turning your profits over quickly. (In fact the fed calls this the velocity of money and keeps track how often funds turnover (from hand to hand, or deal to deal).) Many Re Habbers leave 8-10% on the table for the next guy (Bill and Betty Home Buyer) just so they can get at their money quickly.
Thank you so much to all of you whom have answered my posts in the past. This website is an absolute blessing!I’m still in the newbie stage of this business, but would like to start looking into acquiring some properties. I’m pretty aware of alot of the facets of this business, but I still have some gray area in regards to what is the best method of selling a rehab? I’ve seen alot of people sellling their rehabs via land contract…I’ve seen people do seller financing…I’ve seen lease/option! Can someone please give me some insight as to what is the most effective & profitable way of selling a property after I’ve rehabbed it? Thank you all so much again for your time, and thanks for taking the time to read this post! Have a great Memorial day all!
They claim to purchase your seller financed mortage for D credit and better buyers.
They claim to help you structure the note with a 5% down payment, then the company will purchase the note at a minimum 85% of face value. They then tell you to have the buyer sign a second mortage for the remaining 10%.
I have not joined their program. You might try looking in the cash flow forum for people who have purchased their program.
The absolute best method is to sell at FMV all cash and keep reinvesting that cash. People do contracts, owner financing, or L/O because the have other constraints. Have a hard money loan-sell the owner finaced first to pay it off and keep the second. Maybe you can hold the owner financed note to get a higher return in a year. Maybe you want it back and are at a point in your career you want cash flow vs cash. You want to spend your time doing other things than actively rehabing.
The secret of all cash offers is marketing. Maybe listing in MLS with a bonus will give it the exposure to sell quickly. It might be less of a discount than selling a note. Maybe working with buyers to make them A credit buyers will give you the edge. Or maybe it is a numbers game and open houses, garage sales, ads,or networking realtors will do the trick. The is an active approch and a passive approach to finding buyers. It will depend on your knowledge and interests.
Welcome to the reality for many rehab investors. They have acquired a good deal, spent funds on renovating it, and now they have a lot of their sweat, and money, and profit tied up into that property.
Certainly they can market it and wait for a “qualified” buyer to come along to cash them out when the buyers loan closes. However that can take a lot of time and often those loans don’t close or that so called “qualified” buyer really cannot qualify.
What is the alternative?
CONTROL your own destiny and offer Seller or Owner financing to agressively market the home and to ATTRACT prospective buyers who “come out of the woodwork” at you. You finance them, create a marketable note(s), and then convert that note to CASH.