Once you've already worked on your fixer-uppers and they're completely ready for use, it's time to decide what exactly it is that you should do with it, which will largely depend upon your long-term objectives as well as your current financial situation.
Luckily, there are several simple methods of successfully selling real estate, and here, we will outline four of them for you to consider: Method #1 - Fixer-Uppers and Renting If, as an investor, you're seeking a long-term accumulation of assets and a steady cash flow, as well as being able to take advantage of certain tax breaks, consider the option of renting fixer-uppers.
Of course, this decision should be dependent upon factors like the current interest rates and overall state of the real estate market, and a full understanding of the obligations and responsibilities you'll have as the owner of the property.
Thorough background and credit checks for potential renters as well as ensuring you meet the necessary insurance requirements, including variables like hazard or liability insurance, or mortgage insurance if you don't own the property outright.
Method #2 - Fixer-Uppers and Reselling Method two, reselling fixer-uppers, is an option to consider if you're seeking a quick return on your investment.
But, first you'll have to decide if going through a real estate agent or choosing the for sale by owner (FSBO) option, which is becoming more and more popular thanks to the proliferation of the internet, is best for your individual circumstances.
While choosing FSBO does of course mean that you'll have to do all of the negotiations and legwork yourself, it also means you'll be saving on the agent's fees if you're tight on funds.
Method #3 - Seller Financing and Fixer-Uppers This method of reselling fixer-uppers involves a rather lucrative strategy referred to as "wrapping," which after buying and rehabbing or renovating a property, it is sold for more money to a third party and you the buyer actually carry the loan from the bank on behalf of the third party end buyer.
Method #4 Lease Options and Selling Fixer-Uppers If immediate cash flow isn't a real concern, consider the option of leasing your fixer-upper in order to receive the actual market price value and then be able to generate steady revenue.
Many times buyers are interested in purchasing their own homes, but for some reason or another, aren't able to do so.
However, a home that's been recently renovated, and therefore won't need any costly repairs, that's available with an option to lease, is a great enticement to those would-be buyers.
By opening up more options you'll then be opening up the possibilities to as many potential buyers as possible, including those who might not otherwise qualify for a mortgage.
One important thing to remember is that many people utilizing the lease-purchase option are, surprisingly enough, more concerned with the actual terms of the lease rather than the overall price.
But, one constant remains regardless what your end decision is when it comes to fixer-uppers and generating income, using legally binding, written contracts to protect your investment is imperative.
Luckily, there are several simple methods of successfully selling real estate, and here, we will outline four of them for you to consider: Method #1 - Fixer-Uppers and Renting If, as an investor, you're seeking a long-term accumulation of assets and a steady cash flow, as well as being able to take advantage of certain tax breaks, consider the option of renting fixer-uppers.
Of course, this decision should be dependent upon factors like the current interest rates and overall state of the real estate market, and a full understanding of the obligations and responsibilities you'll have as the owner of the property.
Thorough background and credit checks for potential renters as well as ensuring you meet the necessary insurance requirements, including variables like hazard or liability insurance, or mortgage insurance if you don't own the property outright.
Method #2 - Fixer-Uppers and Reselling Method two, reselling fixer-uppers, is an option to consider if you're seeking a quick return on your investment.
But, first you'll have to decide if going through a real estate agent or choosing the for sale by owner (FSBO) option, which is becoming more and more popular thanks to the proliferation of the internet, is best for your individual circumstances.
While choosing FSBO does of course mean that you'll have to do all of the negotiations and legwork yourself, it also means you'll be saving on the agent's fees if you're tight on funds.
Method #3 - Seller Financing and Fixer-Uppers This method of reselling fixer-uppers involves a rather lucrative strategy referred to as "wrapping," which after buying and rehabbing or renovating a property, it is sold for more money to a third party and you the buyer actually carry the loan from the bank on behalf of the third party end buyer.
Method #4 Lease Options and Selling Fixer-Uppers If immediate cash flow isn't a real concern, consider the option of leasing your fixer-upper in order to receive the actual market price value and then be able to generate steady revenue.
Many times buyers are interested in purchasing their own homes, but for some reason or another, aren't able to do so.
However, a home that's been recently renovated, and therefore won't need any costly repairs, that's available with an option to lease, is a great enticement to those would-be buyers.
By opening up more options you'll then be opening up the possibilities to as many potential buyers as possible, including those who might not otherwise qualify for a mortgage.
One important thing to remember is that many people utilizing the lease-purchase option are, surprisingly enough, more concerned with the actual terms of the lease rather than the overall price.
But, one constant remains regardless what your end decision is when it comes to fixer-uppers and generating income, using legally binding, written contracts to protect your investment is imperative.
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