I want to hear from rehabbers, what was the quickest time they sold their properties For sale by owner… Is selling the property with in a month possible?
Also i was thinking providing my buyer with financing so we can close quick…I know a bank that can close in a decent amount of time. i will let buyer go through them to speed up the process…
How does this sounds??
Focusonmoney,
If your margins are good, you may consider wholesaling to another investor. You may give up 8%, but you could lose that quickly waiting for a retail buyer.
I have a friend who has a long email list of buy-and-hold investors that are looking for ready-to-rent properties. With an 8% haircut, he can sell these places before the rehab is even complete.
Just my two cents (three cents Canadian)
Good luck,
-C
Selling fast can depend on the market you are in. You can do research or ask and agent and find out whats the adverage days on the market in a neighborhood. As far as owner financing goes thats great if you can offer it or refer them to a bank or lender that can move quickly. You could offer them a lease purchase deal where they buy for 2-3k the option to buy the house at retail value whenever they are ready to exercise the option and in the mean time they lease covering you mortgage and then some. If you need cash you could refinance and pull some money out until they buy. when you buy you can also get a loan that you dont have to start making payments on for a few months.
Hi focusonmoney,
To sell a house really quick you want to advertise “No downpayment moves you in.” Think about it, if people know they can buy a house for as much as they’ve been renting, they’ll start making offers left and right. It’s possible to sell the house before it’s finished rehabbing. To do this, check out non-profit organizations like Nehemiah or Ameridream. All you, the seller, has to do is provide a 5-6% gift to the company and they’ll wire the downpayment to your buyers attorney at closing. This sells houses fast and you can also up the asking price a little bit. Buyers can’t haggle as much when the seller is basically paying their downpayment. Check out those sites on the web. They’re huge assets to investors. Good luck.
I bought a house at auction on Aug 5. Had to wait 60 days to get title. I didn’t work on house until I got it. Did three weeks work most of which was cleaning, patch & paint, fix windows, and put down tile in kit & baths. Put ad in paper; 100% financing sign in front yard. Second caller came to house. Did not commit to buying but I got them to fill out a credit report from a pile I had on the kit counter. I gave the report to my mortgage broker who advised the prospect how to clean up their credit standing, and subsequently qualified them for the loan. Even though I advertised 100%, the prospect came up with $5000 down, and I paid the closing costs. We settled on Nov 3, and I walked with around $19,000. Was this quick sale luck? Could be, but think about the part the broker played. This buyer had already been turned down by another broker on another house, but my broker got them approved because he was willing to go the distance for me and my buyer.
Oh yeah, this was not what you could classify as an ugly house. The filth in the house turned off the other buyers so I could buy it cheap.
Best to all
Focus,
Why not offer it FSBO but with owner financing? This will widen your pool of buyers and allow you to sell the property quickly - as well as save you the Realtor fees. If you decide you do not want to hold the mortgage, you can still offer the owner financing and then sell the mortgage at the closing table (or anytime thereafter).
If you do this, just be sure to structure the note and mortgage properly from the beginning! If you don’t, it could be difficult to sell later.
Best wishes.
Michele Robbins, CPA
cparobbins,
I’m interested in the idea that you proposed. How and to whom do you sell the mortgage, once you owner finance?
Sounds like great advice.
Generally, you want to work with a note buyer/investor (like ourselves, for example) BEFORE you go to closing. The note buyer will help you pre-qualify your prospective buyer, help you negotiate the note terms and give you a quote on the note purchase (this is the cash you will receive at closing!). They will work directly with the title company/ closing agent during the closing so that everything is handled and prepared properly.
Warmly,
Michele Robbins, CPA