Property for Sale
If you have property for sale chances are you are frustrated with the real estate market and lack of qualified buyers. There is no doubt property owners are having a hard time selling real estate at a reasonable price. Homeowners must compete with discounted foreclosure properties, bank owned homes, and real estate short sales, along with declining property values.
In order to profit from property for sale, homeowners are finding they must turn to creative finance options such as seller carry back mortgages and lease options. Seller carry back financing requires property owners to act as the finance company for all or part of the purchase price. Lease option involves leasing the property to tenants who sign a contract to buy the real estate within a predetermined timeframe.
Another option for property owners is Subject 2 which allows buyers to take over the loan payments using the seller's good credit status. Property rights are transferred to the buyer using a Subject 2 contract. Loan documents remain in the seller's name until the buyer obtains bank financing.
Sub2 can be a good option when selling real estate to buyers with bad credit who do not qualify for home mortgage financing. Just as with seller carry back mortgages and lease options, buyers must refinance mortgages into their own name as soon as they can qualify for a home loan.
These types of real estate contacts grant buyers time to build or re-establish credit during the contract period. If buyers are unable to qualify for financing at the end of the contract period, the seller retains ownership and can place the property for sale back on the market or enter into a new contract with a different buyer.
Sellers who own investment real estate may want to consider entering into 1031 exchanges. This option allows sellers to exchange like-kind property and defer capital gains taxes on replacement property. 1031 exchanges can only be used to exchange investment properties or business assets.
Individuals facing foreclosure can sometimes enter into real estate short sales with their mortgage lender. The short sale process varies by lender, but most require borrowers to locate a qualified buyer to purchase the real estate for less than the amount owed on the mortgage note.
One option for locating short sale buyers is to seek out investors who buy homes with cash. Banks will sometimes reduce the purchase price when cash offers are presented because the sale can be expedited and closing occurs quickly.
Real estate investors buy all types of properties and can help property owners in many ways. Whether you have a pristine mansion or a dilapidated rundown ugly house, chances are there is a real estate investor who is looking for the type of property you have for sale.
It is relatively easy to locate real estate investors eager to buy. Most people use the Internet to search for local investors. Other options include joining online investing groups or local real estate clubs.
I am currently buying real estate in southern California, Nevada, Arizona, and Washington. Additionally, I have a group of nationwide investors who are also looking for good deals. We encourage visitors to list their property for sale via the "Real Estate for Sale Forms" section. There is no cost to submit property information and listings are broadcast to our group of investors.
We invite you to learn more about each of the strategies presented here in our property for sale article library. We provide information and resources to help sellers discover strategies they may not know exist. New articles are published weekly and we encourage you to subscribe to our mailing list so you do not miss out on important real estate selling strategies.