Savvy owners use this fast-track method to sell investment property fast and amass a fortune in the process.
If you’re in the real estate game, or thinking about getting involved, there are a few things you should learn as quickly as possible. The most important is how to sell investment property fast for top dollar and a steady ROI.
The plain fact is, there really are only four things that will allow you to sell investment properties, such as houses and small buildings, very quickly.
- The price – You want to set a price for that property that is market-supported and attractive to buyers, and preferably a bit below market value.
- Cleanliness and staging – This is often very overlooked. If a property is not in perfect condition, and if it’s not really ready to sell, and it continues to show that it needs minor repairs, you will have trouble unloading that property. The only way for you to get top dollar is if the property is in perfect condition.
- Marketing – Simply put, marketing is doing the advertising, signage, email blitzes and the other things you need to do in order to insure the property gets a lot of exposure and gets a lot of eyeballs looking at the property.
- Creative Financing – This is absolutely the most important factor of all. If you can offer the property with creative financing, and there are no bank loans needed and someone can buy the property on a rent to own basis with owner financing, you will ultimately have more buyers. Why? Because there are so many people out there that don’t have all the money they need right now to put down on a house, yet want to live in a house with the potential to own it. Or they may have a chunk of money but no bank approval. So creative financing is like catnip for a lot of people. Especially younger people who may be just starting a family, and would like to live in a home of their own.
Lease With Option to Buy
So what’s considered the best kind of creative financing? Typically it’s going to be leasing with the option to buy. This is when the seller and the buyer have agreed to let the buyer occupy the property immediately after paying an Option Deposit, usually around 5% of the sale price. The buyer and seller have also agreed to these additional items:
- The future purchase price
- The rent credit
- The commissions to be paid or assignment fees to be paid
Then you can work with that buyer to get pre-approved with a lender and find out how quickly they’ll be able to buy the property down the road.
The best thing about this is it serves two excellent purposes. It unloads the property for full asking price to someone who pays the seller an up-front option deposit, plus monthly rent and the agreement to care for the property. And it gives the prospective buyer a nice house to move into. Hard to beat that combination.