Bank REO Training

One of the challenges of real estate investing is not buying the property, but selling the property.  With so many short sales and foreclosures on the market competing for the buyers what can you do to sell your home quickly?

There are many strategies that I can cover to sell a home quickly, but this strategy is for those properties that are purchased at a deep discount.

For this example let’s say you bought a home worth $150,000 according to the market for 60% off, or a purchase price of $60,000.

Many people would say to sell your home for $120,000-$140,000 and that is a good strategy.  I like to look for win/win situations so why not sell your home for $150,000.

Here is how you do it.  You offer to seller finance the property to the buyer.  This is nothing new, but you need a reason to attract buyers to your home.  There are a couple options that I recommend.

First, always require a down payment.  I recommend a minimum of 5%.  The second pull is the interest rate.

With the interest rate you can either offer a rate lower than the market, like 3% or even offer 0%.

When buyers are looking at the competition and see you are offering your home for 5% down and 0-3% interest they will be much more likely to buy your home than homes that may even be priced lower.

If a person were to get a loan on a $150,000 home with 5% down and an interest rate of 5% they would pay about $791 per month for their mortgage payment.

Your home even with 3% interest would be $621 and 0% would be $409.

A home for sale at $125,000 with 5% down would even cost more per month than your home at $150,000. You would open your home up to many more buyers and have no trouble finding a buyer.

Because of  the great deal you are offering the buyer most likely will not refinance the home because they cannot get a better deal.  If you would like to keep the note for 30 years you can do that, but most investors do not want to wait that long.

One strategy is to have then loan amortized over 30 years but have a balloon payment due after two to five years.  This will help the buyer build some consistency with their credit and help the investor get their money out.

There will be many more tips to come to help you sell your properties as well as how to buy them from many different sources for deep discounts. Check out our training page to get started now.