Selling your home to a local investor is a fairly straightforward process. There are four main kinds of investors: buy-and-hold, wholesaler, flipper, and buy-flip-hold.
Simply put, this type of investor buys rental properties. They may manage their own properties or outsource the task, but all of them seek growth in their real estate portfolio.
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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 buy the worst house in the area for cheap, fix it and make it attractive, and sell it for profit.
A combo of Buy-and-Hold and Flipper Investors, this is typically the sweet spot we’re all looking for. 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 distressed property, flips it and turns 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 list your property for sale, investors can still look for you. However, there’s no need to wait for an investor to find you. 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 generally don’t get a mortgage, and there’s no need for you to anxiously wait for the bank to decide whether or not they will give you a loan. In most cases, they pay cash, without mortgage in the formula, they can conclude the transaction way faster than any standard buyer can. For an investor, closing can take as fast as two weeks to thirty days. With that in mind, you can decide if the speedy sale is worth the cheap price you may have to sell your house for.
2. Repairs not needed
Unlike buyers looking for their perfect move-in ready dream home, investors won’t require repairs or any other job on your property. Instead, they will take care of all the work that may 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.