Selling points for getting homeowners to accept your cash offers
Paying cash for properties is an effective way to add multiple properties to your portfolio in a short period of time. Purchasing properties with cash will offer mutual benefits for homeowners and investors. Not every investor will have the means to offer cash deals, but this is where Joint Ventures will come into play.
As an investor, it’s important to understand the benefits for homeowners to accept your cash offers in order to be able to leverage these reasons in your future transactions.
My top 5 reasons homeowners should accept investor offers are:
Cash in their pocket.
The recent change in the mortgage requirements in Canada, along with the struggling economy make for a less than ideal seller’s market. Because there are so many homes currently listed, properties are sitting on the market for longer and homeowners are missing out on the opportunity to purchase their new dream home.
Having a large sum of cash in a homeowners’ pocket puts them in a fantastic position to make a generous down payment on their next home or better yet invest and make an income from their own real estate transactions!
Flexible payment options.
Investors offer a wide variety of payment options including full payment via certified cheque or cash, pre-scheduled cash payments or by an investor assuming their mortgage. Because of the flexibility of options from an investor, a homeowner can work with the terms that are suitable to their situation.
Investors purchase properties ‘as is’.
Purchasing properties ‘as is’ is fantastic for homeowners who are trying to sell a home that is in need of repairs. While many buyers look at a fixer upper as an inconvenience, an investor looks at it as an opportunity. Homeowners can avoid costly repairs that a typical buyer would require be complete in order to agree to purchase the property.
A quick close.
When you are bypassing approval for financing, a bank appraisal, home inspections and more the process of selling a home can be rapidly expedited. A quick close is a great option for a homeowner at risk for defaulting on their mortgage, someone who has already purchased another home or someone for which the process of purchasing a new home relies on the sale of their home. A quick close can save a homeowners’ credit score, get them into their dream home quicker or ensure they don’t lose out on an opportunity to purchase their next home.
A homeowner can save money when accepting a cash offer from an investor in a variety of ways.
– The property sells privately so there are no realtor fees.
– Most investors have a lawyer or two they work with regularly, earning them a discounted rate on closing costs.
– The home is sold faster resulting in less utility costs, and less property taxes.
– Avoiding two mortgage payments for an extended period of time is also a huge savings for homeowners who have already purchased their next home.
Fully understanding the benefits for homeowners to sell to investors will benefit you in your future real estate transactions. Cash offers often have a negative reputation because so many assume they only work in favor of the investor which is just not the case.
Leveraging the benefits when presenting a homeowner with a cash offer will improve the likelihood of your offers being accepted, resulting in an increased real estate portfolio and a higher ROI for you!
If you would like to learn more in depth how you can find JV partners who have cash and would love to work with you, you may be interested in my 3 part video series.
Money is not a real roadblock, there are people out there who see the value of investing in real estate. You just have to approach them in the right way!
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