{"id":6640,"date":"2022-12-21T08:54:10","date_gmt":"2022-12-21T13:54:10","guid":{"rendered":"https:\/\/dankrell.com\/blog\/?p=6640"},"modified":"2022-12-21T14:37:20","modified_gmt":"2022-12-21T19:37:20","slug":"selling-to-a-real-estate-investor","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2022\/12\/21\/selling-to-a-real-estate-investor\/","title":{"rendered":"Selling to a real estate investor"},"content":{"rendered":"\n

Needless to say, real estate investing has become popular again. Selling to a real estate investor was even embraced by tech companies that are called \u201ciBuyers<\/a>.\u201d To get your attention, real estate investors post road signs, send direct mail, and inundate social media with a promise of getting cash for your home. But real estate investors are not all the same, and their intentions are not always fair: which begs the question \u201cShould you sell your home directly to a real estate investor?\u201d<\/p>\n\n\n\n

Selling to a real estate investor<\/h3>\n\n\n\n
\"selling
Home Values<\/figcaption><\/figure><\/div>\n\n\n\n

When most people think of a real estate investor, they think\nof someone who will renovate and resale the home. This is commonly called\n\u201cflipping.\u201d  However, another type of\nflipping has become popular, where the investor, also known as a \u201cwholesaler,\u201d\nflips their purchase contract to another buyer (usually at a huge profit for\nthem). Also, there are investors who buy and then keep the property to rent. <\/p>\n\n\n\n

What\u2019s the catch?<\/h3>\n\n\n\n

The typical lure from the real estate investor is a quick\nsale. Although many can close quickly, others not so much. The reality is that\nreal estate investors offer the quick sale in lieu of a huge reduction in their\nsale price. After all, they never promised you top dollar. The truth remains\nthat real estate investors pay a fraction of what you can likely sell your home\non the MLS (and the irony is that the MLS buyer is likely to be to an investor).\n<\/p>\n\n\n\n

What about the promise of cash? Although investors offer\ncash for your home, you won\u2019t literally be getting cash at settlement. Rather,\njust like any real estate transaction, you\u2019ll either get a check from the title\ncompany or a wire to your bank. <\/p>\n\n\n\n

Many real estate investors tout \u201cno Realtor fees.\u201d Sounds\ngood, right? Not so fast. Many real estate investors charge premiums and\/or\nmiscellaneous fees. Some make you pay their closing costs.  In truth, your unexpected fees can exceed the\naverage agent commission.<\/p>\n\n\n\n

Real estate investors also promise \u201cno contingencies.\u201d However,\nmany investors use a \u201cstudy period\u201d in lieu of specific contingencies for various\nreasons, including obtaining the funds to close. Wholesalers use the study\nperiod to find a \u201cbuyer\u201d (usually another investor) for their contract (you may\nnot have assurance that the assigned buyer has the ability to complete the purchase).<\/p>\n\n\n\n

Due diligence<\/h3>\n\n\n\n

Before you sell directly to the real estate investor, consider your goals with the pros and cons. Due diligence on your part will help you obtain your goals. Don\u2019t be afraid to approach a local real estate agent to understand the value of your home. Compare an investor sale to the MLS sale (which is typically getting your money a few weeks sooner for a fraction of the value). \u00a0You should consult with an attorney to review the purchase contract to ensure you understand what you\u2019re signing.<\/p>\n\n\n\n

By Dan Krell
Copyright \u00a9 2022 <\/p>\n\n\n\n

\"Protected<\/a><\/figure>\n\n\n\n

Disclaimer<\/a>.\n This article is not intended to provide nor should it be relied upon \nfor legal and financial advice. Readers should not rely solely on the \ninformation contained herein, as it does not purport to be comprehensive\n or render specific advice. Readers should consult with an attorney \nregarding local real estate laws and customs as they vary by state and \njurisdiction. Using this article without permission is a violation of \ncopyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

Needless to say, real estate investing has become popular again. Selling to a real estate investor was even embraced by tech companies that are called \u201ciBuyers.\u201d To get your attention, real estate investors post road signs, send direct mail, and inundate social media with a promise of getting cash for your home. But real estate … <\/p>\n

Continue reading “Selling to a real estate investor”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[123,382,13,1192,1170],"tags":[1038,865,912,633,1193,517],"class_list":["post-6640","post","type-post","status-publish","format-standard","hentry","category-home-sale","category-home-seller","category-real-estate","category-real-estate-investor","category-selling-a-home","tag-home-pricing","tag-home-sale","tag-home-seller","tag-home-selling","tag-real-estate-investor","tag-selling-a-home"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-1J6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=6640"}],"version-history":[{"count":5,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6640\/revisions"}],"predecessor-version":[{"id":6646,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/6640\/revisions\/6646"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=6640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=6640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=6640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}