Selling your home to a local investor is often a clear-cut process. There are four key types of investors – buy and hold, wholesaler, flipper, and the buy/flip/hold investor.
Simply put, this type of investor buys rental properties. They may or may not manage their properties personally, but all of them would like to see growth in their real estate portfolio.
Figuring Out Homes
This investor can only hold your property for 10 minutes before selling it to another investor.
You’ve likely seen these investors on reality TV shows. They pay a very low price for the worst house on the block, repair it and make it attractive, and sell it for a good profit.
A combination of Buy & Hold and Flipper Investors, this is often where our sweet spot lies. The owner is forced to sell a distressed property due to financial woes or any other issue, like divorce, inheritance or job relocation. The investor buys the property, flips it and transforms it into a rental.
A lot of investors do a combo of the three types, while some focus on one. How much they pay for a property depends on certain factors, including the condition of your house and market conditions in your area.
If you advertise your property for sale, investors will look for you, especially if you use the correct keywords in the description, such as “handyman special” or “fixer upper.” Even if you don’t advertise your home for sale, there is still a chance investors may approach you. You need not wait for them to contact you, however. You can always reach out to those within your location.
So what are the advantages of selling your home to a real estate investor?
1. Quick cash
Investors don’t normally get a mortgage, and you don’t need to be waiting for the bank to decide if you can get a loan or not. In most cases, they pay in cash, and since mortgage is out of the picture, they can close the deal more quickly than any standard buyer. If you sell to an investor, closing can only take two weeks to a month. Keeping that in mind, you can decide if the quick sale is worth the cheaper price you may need to accept.
2. No need for repairs
In contrast to buyers looking for their perfect dream home, investors won’t make you do repairs or any other job on the property. They will instead do all the work that might be necessary to restore the home. Of course, you should expect a lower offer, but with the right investor, everything will ultimately even out.
There may be more advantages if you sell your home to an investor, but these two are undoubtedly the most significant.