Investing in PA real estate takes capital. Often, first time investors use their own money to invest first. This usually works to buy a couple of properties free-and-clear but soon, most people run out of their own capital… which means they either have to stop buying real estate or they have to figure out how to buy more real estate without using their own money. In this blog post, we’ll share a number of ways that you can finance your next investment property. How to get investment property financing in Philadelphia PA…There are several ways to get money to buy an investment property in Philadelphia. Here are some of your options: 1. Traditional Banks and Lending InstitutionsOne way to finance your next investment is to borrow money through a bank or lending institution. If you have good credit, and enough money for a down payment, then this can be an effective way to acquire more properties — potentially several more properties! You’ll need to make sure that your credit score is in good shape, so be sure to pay your debts on time, and pay them off in full regularly to demonstrate a history of good credit management. Once you build up good credit, financial institutions will be willing to lend to you and you can go out and acquire properties. At some point, however, your debt-to-income ratio might exceed a bank’s desire to lend to you, once you have a certain number of properties under ownership. When this happens, then it’s time to turn to other sources to finance your real estate investments. 2. Self-FinancingOne very clever way of financing your real estate investing is to borrow against your existing investments and use that money to buy new investments. For example, if you own a couple of properties and they have some equity in them, why not borrow against them (by refinancing them or by taking out a home equity line of credit) and using that money to acquire more properties. This is the power of leverage at work in your investments! Of course you’ll want to be careful that your debt servicing payments are not more than the income you earn from your new acquisitions but there are investors who build up a large portfolio just with their own credit and this self-financing strategy! 3. Private LendingAnother way to finance your real estate investment in Philadelphia is to use a private lender. Private lending is when another investor lends you their money. You pay them back, just like you would pay back a bank; the only difference is: private lenders don’t always look at your credit score; they’re often more interested in the investment itself and they’ll decide how much to lend you and what interest rate to charge based on their assessment of the property. This is a very powerful kind of financing because it’s win/win: You win by getting the money you need to do deals; the private lender wins because they want to invest in real estate and have the money to do so but don’t have the time or desire to do the work themselves. If you are a private lender who wants to invest in real estate without the effort of doing the work yourself, be sure to connect with us at (215) 882-9828 — we can hook you up with some investors who are looking for money for their deals! 4. Seller FinancingAnother great way to finance real estate investments is to use seller financing. It has become a bit more difficult with new federal regulations… but it can be done. Seller financing is where you work with the seller themselves who will sell the property to you… but instead of getting a lump sum for the property, they simply take ongoing payments until it’s all paid off. “Newbie investors” are sometimes surprised that this method even exists but sellers like it because they get the cash flow without the headache of property ownership (plus their risk is minimized because if you fail to pay, the title of the property reverts back to them). This is another win/win deals.
How will you finance your next Philadelphia real estate investment?With so many options to choose from, how will you finance your next real estate investment? Choose from these four powerful financing strategies and mix-and-match them for the best result for you! If you’re eager to invest and just need deals or money to help you get going, just click the link below and fill out the short form to get started. We’d love to help you build your investment portfolio! See Our Available Philadelphia Investment Properties And Get On Our Early Alert Listvia WordPress https://ift.tt/2SHi7Mj
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Do you know the true value of your land in Philadelphia? It can be tough to determine the fair market value of a piece of land. In our latest post, we offer some ways to help you get a better idea of what your land is worth! Determining an accurate value for your land can be difficult. You can look at what other pieces of land are selling for, but there are likely features of your land that make it unique. Property FeaturesUtilities Assessments Location The Dirt Itself Run CompsA good way to determine the value of your land in Philadelphia is to take a look at the most recent comparable sales. The pieces of land you are comparing yours too should be as similar as possible. For example, you can’t compare a lot along a creek with one surrounded by others lots just a few blocks over. You’ll want to focus on the most recent sales. Future DevelopmentIf there are big plans for your area, make sure to make this known when appealing to potential buyers. Investors will swarm at the chance to purchase a property in an up and coming area, where land values are likely to rise. Show The PotentialIf you decide to sell the land yourself or work with an agent, it’s important that you highlight the potential of the land. You can go so far as to create schematics of what could be developed on the land. Give potential buyers a vision so they see more than just a piece of dirt. Show them the highest and best use for the property. Let them know what’s possible as far as development and from a financial standpoint. Familiarize yourself with development costs so you can help answer your potential buyer’s questions about the lot. Statistically, there is a smaller market for land than there is for residential properties. Finding the right buyer who can follow through and pay what you want, can be difficult to find. By choosing to sell your land directly to Rapid Home Liquidation, you can be assured you will receive a great price, a fast closing, and the ability to reinvest your proceeds into another investment right away if you so choose. If your land isn’t doing anything for you, maybe its time you consider an alternate investment! Let us help you determine the true value of your land in Philadelphia! Contact us today for more information!via WordPress https://ift.tt/30Qw11o Are you thinking about buying a condo in Philadelphia? Here are some questions to ask yourself before making the purchase! Whether you are buying a condo for yourself or as an investment, there are a few things to consider before buying. You don’t want to find yourself stuck in the wrong place or in the wrong community. Condos are usually heavily regulated by an HOA, so it is important to make sure you are comfortable with the bylaws of the community. Below, we offer some things to ask yourself before buying a condo in Philadelphia! What Are The HOA Fees?When you own a property in a condo community, there are going to be HOA fees. It’s important to know what these fees are, what they cover, and the rate at which they can be increased. If you are living there yourself, you should add the HOA costs to your monthly expenditures. If you are renting out the property, you’ll need to factor in these costs when setting the price of the rent. A condo in a community with few amenities will rent for much lower than the same condo in a community with lots of benefits and perks. What Is The Policy On Renting The Condo Out?Be sure to read all the rules and bylaws in place in the community. Some communities have rules about renting the condo out to third parties. Typically, using the condo as a vacation rental on sites like Air B&B won’t be allowed. Is The Complex In Demand?Take a look at the recent sales as well as other units for rent in the area. How long are these properties staying on the market? If they are being snapped up pretty quickly, its a sign that the property is in demand and will increase in value over a relatively short period of time. As an investor, you’ll want to make sure that you will be able to find a high-quality tenant right away. While some vacancies are normal, you don’t ever want to risk being stuck with a vacant unit over a long period of time. How Will It Meet Your Needs Longterm?Many people will purchase a condo as an investment with the goal of using it themselves during retirement. Once you’re retired, you may not need the space, yard, or hassles of a single-family home. If you plan on solely renting it, make sure it is an area that is appreciating, with positive future development plans in the works. When buying a condo in Philadelphia, you’ll want to make sure it will be beneficial for you for years to come. Of course, if you are flipping the property, this won’t apply. Are The Rules And Regulations Reasonable?An HOA puts rules and regulations in place in order to maintain a high quality of life for its residents. For example, you don’t want to hear music all night, have strangers park in your spot, or worry about the shared areas being dirty or full of litter. However, it’s no secret that some HOA’s go overboard with what they demand of its residents. Everything from what’s on your patio to the color of your interior curtains can be regulated. While some people appreciate the order, others can feel like they are losing their sense of freedom. Before purchasing a condo in Philadelphia, make sure you are comfortable with the rules of the community. Purchasing a condo in Philadelphia is an excellent way to begin or add to your real estate portfolio. Once you know what to look for and where to buy, purchasing condos as an investment can be a very profitable practice! Contact us if you are thinking about buying a condo in Philadelphia, we are here to help! (215) 882-9828via WordPress https://ift.tt/2LIjSI6 Are you looking for multi-family properties in Philadelphia? Check out our tips to help you save time and money when you are ready to buy! Multi-family property investment in Philadelphia is a wonderful way to build your portfolio. However, not ever multi-family property will be profitable. It’s important to know what to do both before and after the sale to ensure you are getting the most for your money. Below, are a few things to look for when buying a multi-family property in Philadelphia! The Right LocationA great property in the wrong location isn’t going to provide the returns you’re after. You may have to compromise on the amount of rent you’re charging or on the quality of your tenants. High-quality tenants aren’t going to live in a bad area, nor are they going to want to overpay for doing so. If you want to buy a multi-family property in Philadelphia, make sure you pick a great location! The Right TenantsTenant screening should be thorough and mandatory for every person living under your roof. Even if you know the tenants previously, you’ll want to run background checks, contact references, and verify income. Not doing so can have you feeling stuck with the wrong people in your rental, And when the wrong people are in your rental, you’re likely to lose money in the long run due to missed rent or property damage. Be sure to check every applicant before allowing anyone to move into your multi-family property in Philadelphia. Creating BoundariesYou should let your tenants know upfront what will and will not be tolerated. For example, loud music heard through the walls, parking rules, smoking on the property, the number of guests at any one time, and pet policies. Putting rules in place ahead of time will help alleviate any potential conflicts between your tenants down the road. Nobody wants to be policed by their landlord, however, everyone wants to live in peace. By setting boundaries upfront, you’ll be able to screen out the bad ones and find two (or more) tenants who will be compatible. Understand The DifferencesOwning a multi-family property is different than owning a single family home. While it’s great to not put all your eggs in one basket as far as renters (having two units will lower your vacancy rate) however damages to the property can affect 2 parties, resulting in a greater loss of income for you. Let’s say a pipe breaks and floods the units. You may lose multiple tenants and have a larger area to repair than you would with a single family home. That said, having multiple tenants will help guarantee that you always have some income coming in even if somebody moves out. Create DemandOften times, a duplex, triplex, or quad, will simply be affordable housing, without any draw or uniqueness. By adding great curb appeal, adding features other properties in the area lack, and properly maintaining the building will help your building stand out from the others. Depending on the building, you could add tables, flowers, a fresh coat of paint, or even a hot tub. These little perks will ensure your units are always rented out at the best possible prices. Work With An ExpertIf you haven’t dealt with multi-family properties in the past, there be much for you to learn. Working with a local, trusted professional will help you find a great property that will perform well, without breaking the bank. Rapid Home Liquidation can help you with the best properties and great deals on multi-family property in Philadelphia! Let us help you find the best multi-family properties in Philadelphia! Get in touch with us today to learn more! (215) 882-9828via WordPress https://ift.tt/30Zw0rX Selling your house in Philadelphia can be simple when using a rent to own contract! There are a number of excellent benefits to selling this way that homeowners don’t always realize. Keep reading to learn more about some of these great benefits in our latest post! Using a rent to own agreement when selling your house in Philadelphia can be an excellent way to sell your house. The benefits to home sellers can be huge. You’ll be able to reach more buyers, you’ll have a much better shot of getting your asking price, and you will instantly turn your property into an investment that provides you with income month after month. If you need to sell your house in Philadelphia don’t rule out a rent to own contract, it might be the home selling solution you have been waiting for! Set A Realistic Down PaymentWhen using a down payment or option fee in a rent to own contract, the number needs to be realistic. If a buyer isn’t able to qualify for a loan due to lack of down payment, they aren’t going to be able to come up with one for you either. While you should require an option fee from your potential buyer, make sure it is something they can afford. Not something that will dissuade them from agreeing to the deal with you. Use A Comprehensive AgreementThere are a lot of things that should be covered in a rent to own agreement. It is important to have a detailed contract that covers common situations buyers and sellers face. By using a detailed and comprehensive agreement upfront, you’ll be able to avoid any disagreements or disturbances down the road. A few of the things to include in the agreement include… Repairs & Maintenance – It’s important to have a clear understanding of who is in charge of what. In many cases, minor repairs and maintenance costs will be the responsibility of the tenant/potential owner. Whereas if something major should go wrong, that expense will fall on the actual property owner. Let’s say the water heater busts a week after move-in. This cost won’t usually be the responsibility of the tenant. Taxes – At the end of the day, the property taxes are the responsibility of the person whose name appears on the deed. Some agreements will take taxes into consideration, charging the prospective buyer a reimbursement cost. Lease Terms – Some contracts last a year and others last three. As the homeowner, it is up to you how long you are willing to wait before officially selling the house. Some homeowners don’t mind waiting, while others will want the closing to happen sooner rather than later. Contingencies – A properly set up agreement will offer contingencies for both the buyer and seller. The buyer cannot be expected to purchase the house if they discover something fundamentally wrong with the property that wasn’t disclosed up front. While you want to find a buyer, it is also important to be honest and fair. Foreclosure Process – Your agreement should outline the foreclosure process and what will put the tenant in violation of their agreement. Hopefully, you won’t ever have to deal with the eviction process, however, if you do, it will help to have all the details in black and white. Miscellaneous Situations – Depending on your property and its location, there are miscellaneous things you should include in your contract. Like what happens if your tenant violates HOA rules? Or if they alter the house without following through on the lease? Or if a natural disaster damages the property beyond repair? There are lots of different situations that can arise. By anticipating them ahead of time, you’ll be able to avoid conflict with your tenants down the road. References and Background ChecksWhile you are opening the house up to many more buyers, you can just go into an agreement with just anyone. You will need to do some research on your potential buyer by checking references and running background checks. You will want to make sure that the people you enter into a rent to own agreement with are able to pay you each month until they qualify for a mortgage. Consult A ProHiring a professional such as Rapid Home Liquidation to help you with the set up of your rent to own agreement is crucial when selling your house this way. We can help you set up the contract, find the right buyers, answer all of your questions, and make sure everything is handled legally and ethically. By utilizing our expertise in the rent to own market, you’ll finally be able to sell your house, get your asking price, and be able to create an income-producing asset for you and your family. Use a rent to own contract to sell your house in Philadelphia! Contact us today for more information!via WordPress https://ift.tt/2MiHTVF Buying your first rental property in Philadelphia might be easier than you think. People get involved in real estate every day, some without much knowledge or capital. The opportunities are there if you know where to look! Learn how to get started with Philadelphia real estate investment in our latest post! Set Your GoalsIt is important to know what you are trying to achieve and what it will take to get there. Why are you investing in real estate and what are you hoping to achieve. You’ll want to consider dollar amounts and timeframes. How much do you need to make and how quickly do you need to do it in order to feel successful? Set your goals and take the steps you need to make to get there. Make sure everything you are doing is in alignment with these goals and you will be well on your way. Pay Off Your DebtAs a first time investor, you don’t want to go into your investment career carrying any debt with you. While some more seasoned investors will use their debt as an asset, this isn’t the way you want to begin. You’ll need a clean slate, some money in the bank, and a solid credit score to get your foot in the door the traditional way. Save For Your Down PaymentYou’ll want to save up at least 20% for your downpayment as well as six months of operating costs. While there are other financing options you can use to avoid the hefty down payment, but those are usually best for more experienced investors who will be able to pay back these high-interest loans more quickly. Get Your Financing In PlaceIf you are financing a portion of the cost to purchase the property, make sure to have this in place before making offers on available properties. You will likely have competition from other investors who have cash in hand, with the ability to close quickly. Don’t let your lack of funding cause you to miss out on a great deal. Avoid Fixer-UppersA fixer-upper can be a great investment, but maybe not for your first go-around. Repair costs can snowball and unless you are working with a contractor you know, trust, and who does great work at a low price, buying a fixer-upper as your first rental property may get you in over your head. Fixer-upper properties are better left to people with investment experience or construction background. Know The CostsHow much will owning the house cost you? Consider the property taxes, insurance, maintenance, and inevitable repairs. As the owner of a Philadelphia rental property, you will find yourself paying for much more than just a mortgage. You’ll face other costs that a regular homeowner wouldn’t face. As a landlord, you will also have to think about things like tenant screening, eviction costs, and paying all the bills when you are in between tenants. Choose The Right LocationLocation, as they say, is everything. A house can be remodeled, repairs, or completely knocked down and rebuilt. However, your location is permanent. The area you choose for your rental property will have a massive impact on your profit potential. Look for houses priced under market value in up and coming areas. Look for places where there are new businesses and establishments popping up. When a Walmart, Costco, or Starbucks enters the neighborhood, it’s a sure-fire way to know that an area is growing. Pay The Right AmountNobody wants to find out they have overpaid for a property. Overspending on your rental property will end up costing you and will taint your view of real estate investment as a whole. While everyone makes mistakes, making a real estate mistake can be one of the worst. If you do your homework, have taken the time to learn from other investors, and have built a great team around you, you will feel confident that you are not overpaying. Preparation will help you to pay the right amount for your Philadelphia real estate investments. Find The Right TenantsOnce you have made your purchase, it is important to find the right tenants to get the returns you need. Having the wrong people in the house can make any profit you had expected to receive, vanish right before your eyes. Tenant turnover, repairs, evictions, and missed rent are all huge factors when calculating your overall profits. If you aren’t having luck finding the right tenants on your own, consider hiring a property management company to help you. Many companies will offer different levels of service, helping you only with getting the tenants in the door if that is what you need. Of course, their additional services can come in handy as well. When you decide to buy your first rental property in Philadelphia, get in touch! We’re ready to help you! (215) 882-9828via WordPress https://ift.tt/2MgtbPg Owning an unwanted house in Philadelphia can be expensive, frustrating, and burdensome. There isn’t much worse then not liking where you live and feeling as if there is nothing you can do about it. Whether you are living in the house or renting it out, in our latest post, we offer 5 ways to handle your unwanted house in Philadelphia! Nobody wants to feel stuck owning a house they don’t want. Every expense feels like a burden but you don’t want to just hand it over to a buyer either. Below, we offer several great ways to handle your unwanted property in Philadelphia! Renovate ItTake a look at how much it will cost to renovate and how that will affect the homes overall value. Maybe you have been putting off repairs for years and feel overwhelmed. But maybe, all the property needs is a good facelift to restore it to its old glory. A quick renovation to the house can have a huge impact on the value of the home, turning it into something you may actually want to hold onto! Find The Right RenterMaybe you are burdened and looking to sell because you are tired of bad tenants, chasing down your rent, or making repairs. Having the wrong tenants in place can completely negate the benefits of owning a rental property. Tenant turnover will quickly kill your profits if you are struggling to find consistent renters. Before you give up on your Philadelphia property, ask yourself if things would be different if you had the right renter in there. Maybe it isn’t the right house for you or maybe the tenants currently living in your house have soured you to the whole situation, causing you to want to throw your hands up in the air and walk away. Don’t walk away until you think about ways to get the right people in there. A great property manager can help you to screen tenants, ensuring you get the right people in the house, making your investment profitable once again. Sell It Fast, As-IsYes, you may not get retail value, but the quicker you can sell it, the more cash you will be able to hold onto. While your property may not be very pretty, there are always investors who choose to purchase properties as-is. By selling it quickly to an investor or private buyer, you’ll be able to end the holding costs, keeping more money in your pocket overall. Selling as-is saves you from the costs and burdens of having to clean, upgrade, and repair the house. You can choose to list the house in this manner, but you will still be subject to commissions. With a direct sale, those can be avoided. A fast and private sale can save you thousands when you consider the homeowner’s insurance, property taxes, monthly utility bills, routine maintenance, repairs, and landscaping costs you will face month after month as compared to a standard listing on the MLS. Give It AwayIn some situations, simply giving the house away can be the best thing you can do with it. You’ll receive some great tax benefits and will be able to benefit someone else in the process. You can choose to give is as a donation to a charity or you can give it to a friend or family member. If you have no interest in holding onto it and you don’t believe you can get much or it, giving it away may be the best thing you can do in your current situation. WaitHow much is the property really costing you? If the answer is nothing, consider holding onto it for a while to see what happens to the property value. If holding onto it for a few months longer has the potential to net you a few thousand more, it might be worth waiting. Take a look at market trends and appreciation rates. What does future development look like in the area? By holding it, you will be able to sell at a time when you will see the greatest profit… maybe once the area has been built up a bit and is in higher demand. Find A Direct BuyerA direct buyer will usually be able to purchase your house quickly and as-is. This will save you time and money on repairs and holding costs. You can work with private investors or highly-rated, professional homebuyers such as Rapid Home Liquidation. If you are looking for a fast and fair way to sell your house in Philadelphia, we will offer you a no-obligation offer right away! Our process is simple and will give you insight into the true value of your house in Philadelphia. If you have an unwanted house in Philadelphia that you would like to sell, get in touch with us today to find out what we can do for you! Contact us today to learn more about the best ways to handle an unwanted house in the Philadelphia area! (215) 882-9828via WordPress https://ift.tt/30Wh6Tu As an investor in Philadelphia, there are many great reasons to buy properties in bulk. That said, there are a number of things you will need to watch out for too. Learn more about buying bulk properties in Philadelphia in our latest post! Buying in bulk can get you in over your head whether you are talking about real estate or groceries. It’s important to know how it works and what you can expect after closing on a transaction with multiple properties. Buying property in bulk can be extremely rewarding. If one property ends up making you a fortune, it is more than worth it to clean, process, and resell the properties that are just average. Investors often sell in bulk because they don’t want to deal with multiple transactions, or they have some bad properties they can’t get rid of and the only way to do so is my lumping them in with some higher quality properties. Buying and selling in this method can have perks for everyone involved. Lower Your Vacancy RateWhen you are the owner of several rental properties, having a vacancy in one isn’t going to break the bank. However, when your rental income is tied to one property, that same vacancy means that you are instantly bringing in nothing each month until the property is rented out again. Without any rental income, you’re not only missing out on profits, but you will also find yourself paying the monthly utility and maintenance costs that had previously fallen on your tenant. When you have multiple properties, purchased via a bulk sale, you won’t have to worry so much when a property becomes empty. Diamond In The RoughWhen buying properties in bulk, you can typically expect to find properties at both ends of the spectrum – both great deals, along with a few duds. The goal is to offload the bad properties ASAP while putting your time, money, and energy into the ones that will generate a profit for you. Look for these diamond in the rough properties. Finding the right one can justify a bulk purchase, even if all of the properties included aren’t up to your standards! Just make sure you have a solid plan for the properties you don’t plan on keeping. If possible, work with other buyers, so you can quickly sell the ones you don’t want. Instant PortfolioWhen you buy multiple properties at once you can go from a non-investor to a mogul overnight. Of course, we don’t advise buying properties in bulk if you have never invested before, but you are prepared and you know what you are doing, you can quickly find multiple properties to flip or rent out all in one transaction. Instead of spending years acquiring multiple rentals, you can do it in only one transaction. Just make sure you know what you are getting into when it comes to repairs, costs, maintenance, and finding the right people to live there. Less CompetitionThere is typically much less competition when buying bulk properties in Philadelphia. Most buyers are looking for property for themselves. Most investors are looking to buy one property at a time to build their portfolio step by step. Fewer buyers are looking to purchase multiple properties at once. Many are concerned with the costs or potential headaches, however, once you understand the process, you can simply go through the motions to separate the bad properties from the good ones, focusing on the properties that are going to generate income for you. If you want to buy properties in bulk in Philadelphia, we can help! Get in touch with us today! (215) 882-9828via WordPress https://ift.tt/313bkj1 There are many opportunities in the real estate investment market in Philadelphia, PA. From changing financial regulations and interest rates to an economic future that still has a lot of question marks about its direction, home buyers and home sellers are not sure how to proceed. One smart strategy that buyers and sellers are exploring is the all-cash strategy. Why cash is king for property sellersSellers who sell their homes through traditional methods (listing with an agent for a market price) discover a number of challenging scenarios: First, they often have to sink a lot of their own time and money into their property first in order to get it up to a level that will make it sale-ready. If a home seller wants to do this, that’s fine; but many people lack the time, money, and skill to make the necessary changes to make their property sale-worthy. So a cash offer, although sometimes slightly lower than a market offer, can actually be more valuable by saving the home seller the pain and frustration and cost of having to work on their property before listing it. Second, houses sold at market prices can often only be bought by those who can get a mortgage… and sometimes it can take days or even weeks for a financial institution to grant a mortgage. Therefore, the seller is left waiting for that period of time while they wait for the buyer to get a mortgage. So selling with cash if extremely fast. Serious home buyers have the cash ready within hours or just a couple days at the most. Third, financial institutions don’t always grant the mortgages that homebuyers think they’ll grant. Home sellers quickly realize that deals fall through fairly regularly as homebuyers don’t get the financing they were hoping for. Cash doesn’t have to wait for any financing — cash is ready to be used for the purchase. It’s no wonder that home sellers love cash deals… they can save themselves time and money and they can sell their home fast. If you’re a home seller and you want to explore the possibility of a cash deal, just fill out the form to get started.
Why cash is king for buyers in this property investment market in PhiladelphiaHome buyers love cash deals too! First, cash deals can be obtained often for below-market pricing because of the value provided to the seller of a fast property sale (often “as-is”). Cash assures the seller that the property is accepted the way it is. Second, cash is fast and there is no waiting. Sellers love the rapid transaction, and buyers love that they don’t have to wait for banks to approve a mortgage. Third, cash is preferred because it doesn’t cost any more. When you buy a home with a mortgage, you pay interest on that mortgage — often thousands of dollars more than the original value of the home. But if you pay cash, the price you pay is the only amount of money you pay — and not a penny more. Want to learn more about selling or buying with cash? Just fill out this form or give us a call at (215) 882-9828 and we’ll be happy to talk you through the info you need.via WordPress https://ift.tt/2MciCwo There are many benefits of owner financing for homeowners in Philadelphia! Learn more about the perks of using a rent to own contract to sell your house in our latest post! Rent to own contracts are not standard boilerplate agreements. There are many aspects of the deal that can be modified to better suit a buyer or a seller. The terms of the lease, down payment, and responsibilities of both the buyer and seller can all vary from contract to contract. When the agreement is structured correctly, a home seller has the potential to come out ahead when all is said and done. Cash UpfrontJust because you opt to use owner-financing, doesn’t mean your buyer will be able to avoid a down payment. When a seller offers financing for a property, even if it is short-term in a rent to own situation, they will still want to collect a down payment up front to secure the deal and to protect the seller from any loss. This upfront cash is often referred to as the option fee, which gives the buyer the option to buy at the end of the lease term. This fee can be anywhere from 2-7% of the final purchase price, however, a smart investor will keep this number on the low side to ensure they aren’t inadvertently pushing away any potential buyers by asking for an option fee that isn’t affordable. Guaranteed IncomeWhen you use owner financing or rent to own agreement to sell your house you will help ensure that you are bringing in an income each month. Your buyer or tenant isn’t going to risk defaulting on their agreement, so you can almost guarantee your money will be received on time every month. Having extra income can mean huge changes for you and your family. It can be like having a second job, without having to do all of the extra work. Many landlords are desperate to find a tenant. When owner financing comes into play tenants will line up at the chance to buy a home outright. A Larger Pool Of BuyersOffering owner financing to help sell your house in the Philadelphia area will bring in a whole new pool of buyers. People who aren’t able to qualify or afford a down payment on a traditional mortgage will be able to come to you. Of course, you will need to run background and credit checks so you don’t end up in an agreement with the wrong person. But by offering owner financing for your property in Philadelphia, you will be able to find many more potential buyers for your house. You will also be able to help someone who has a dream of homeownership, but who isn’t quite ready to do it all on their own. Get Your Asking PriceBuyers are usually willing to pay your asking price in exchange for the opportunity to purchase your home. Your price should be reasonable and in-line with what other properties are selling for in the area. You may have to wait a year or two for the house to officially close. If you don’t mind collecting a rent payment, instead of the total profit from the home right away, you’ll likely be able to collect your asking price, without having to lose any money on the sale. You will have the upper hand in negotiations as your buyers aren’t going to want to have their offer be rejected. A Fast SaleBy opening the door to new buyers, you’ll likely encounter many people who will jump at the chance to buy. Typically, you will be able to find a competent buyer right away. A traditional sale could have you waiting for months until a suitable buyer is found. By signing a rent to own agreement right away with a potential buyer, will immediately limit your liability and will help you end a good amount of ownership costs that you had previously been facing. Freedom From ExpensesOnce you have a tenant or prospective buyer in place, typically repairs and maintenance expenses will fall on their shoulders. That’s not to say you are off the hook for all costs, but you will be able to alleviate the majority of the routine repairs and maintenance costs homeowners often face. By eliminating these expenses from your budget each month you will be able to save up even more money toward the purchase of a new Philadelphia investment property. There is nothing that says you need to hold onto a house forever. The traditional methods of selling don’t always attract the right buyers. Offering owner financing on the sale of your property can quickly tun=rn the tables, helping you find a buyer almost immediately. Learn more about the perks of owner financing for home sellers in Philadelphia! We’ll answer all of your questions, contact us today! (215) 882-9828via WordPress https://ift.tt/32LrLlw |
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