Retailing Investment Property Fast Strategies
| In this article I am going to focus on the fastest and easiest way to retail an investment property and get the most cash for your real estate deal in the shortest period of time.|
In this article, I am going to talk about retailing houses to owner occupants. You can make more money per house by retailing and also get into more creative financing strategies by accepting a second mortgage, buying the rate down, paying closing cost, etc.
Because you have more profit to work with, you can be more flexible on helping your buyer qualify. The down side is that once you sell a house to someone there's not much chance that you can sell them another one. The good news is that you can get lots of referrals once you help someone become a homeowner.
Secret Selling Strategy #1
Have you ever lowered the price of a house you have for sale as a retail property? Hopefully, after you read this, you'll never have to do that again. Did you know that for every $1,000 in price reduction it only changes the payment about $6 dollars? That's not much of an incentive for a buyer. However, if you keep the price the same and offer to pay closing costs or carry a small second mortgage, it greatly increases the number of qualified buyers that could purchase your home.
Secret Selling Strategy #2
I'd like to suggest that before you ever put a home on the market to retail that you get an appraisal first. Let me also say that there are appraisers out there that can stretch the value but I don't recommend doing that. I've seen many sellers that found an appraiser to stretch the value but what good does it do when the lender is going to require either a desktop review or another drive by appraisal or full appraisal? Besides, you don't want to get a reputation with lenders of pumping up values of your homes, not to mention the possibilities of fraud becoming an issue. You don't want any part of that. You want a good appraisal by a reputable appraiser.
Once you have a good clean appraisal, you're ready to market your property and, instead of dropping the price, you offer to pay closing costs (most lenders allow up to 6% in seller concessions). This will increase the number of potential buyers that can buy your home. The realtors also like it because their commission is based on the purchase price.
Secret Selling Strategy #3
Another way to increase the number of buyers that can qualify for your home is to use some of the seller concessions to buy down the rate. Builders do it all the time. You can buy the rate down for the life of the loan or just for the first few years. This makes for a lower payment and thus more buyers can qualify for your house! This one technique can save a deal.
Invest the time in "getting to know" or "qualifying your buyer". There are many questions to ask the buyer. Remember, you must get them to like and trust you before you can ask too many questions. Create a basic questionnaire or web form to help you with real estate buyers lead.
|Larry H. Goins is not only licensed as a mortgage lender and mortgage broker in North Carolina and South Carolina, he is also licensed in both North Carolina and South Carolina as a Real Estate Broker and General Contractor. He is a member of the North Carolina Association of Mortgage Professionals and a member of the National Association of Mortgage Professionals. |
Over the past few years, Larry has served as President (2003 & 2004) of the Metrolina Real Estate Investors Association in Charlotte NC, a not-for-profit organization that has over 350 members and is the local chapter of the National Real Estate Investors Association.
In addition to conducting his own sold out 3 day Dream Big & Wakeup Wealthy Boot Camps several times a year, he is also an active real estate investor and speaks at various Real Estate Investment Associations about investing and finance.
Between speaking engagements and mentoring other investors, he oversees the daily operations of Investors Rehab, Inc., of which he is a co-founder and officer. Investors Rehab, Inc. is a real estate investment company that buys and wholesales 10-15 houses per month to other investors at 70% of ARV.
Larry Goins is also the Owner and a Managing Member of Financial Help Services, Inc., a Mortgage Broker and Lender specializing in Investor Loans. Financial Help Services, Inc. offers traditional and hard money loans to investors.
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