There are many ways to start making money in real estate. For instance, a real estate investor could invest money in various projects, rent out income properties or implement the strategy of buying an investment property and selling it soon after for a profit. However, there might be another reason to sell an income property. For instance, to make even more money with the next rental income property. In this blog, we will explore how to sell a rental property as well as how to grow your real estate business. So, are you ready to learn how to make money in real estate the successful way? Then keep on reading!
#1 How to Sell a Rental Property
Selling a rental property is not as easy as it may sound. There are many steps real estate investors should take in order to sell an investment property at a profit. Let’s explore the steps that the most successful real estate investors take into consideration when selling rental properties. Interested to learn more about selling investment properties? Make sure to read “Your Guide to Selling Real Estate Investment Properties.”
How to Sell a Rental Property Step One: Prepare Your Investment Property
Selling income properties is a real art with many little aspects. However, the most successful real estate investors understand that if the buyer does not like what he/she sees, there will not be a successful deal. Consequently, paying attention to the physical environment of a rental income property is crucial. So, the real estate investor should consider proper renovation before placing the income property on the real estate market.
So, how to sell a rental property? We understand that you would like to squeeze the most out of the income property. Therefore, real estate investors should understand the difference between selling a rental property and a primary residence, as the quality of real estate investments is not the same. In order to start making money in real estate from selling rental properties, the real estate investor should understand one thing. Most of the investments won’t need extra improvements. The income property should simply be relatively up to date as well as clean.
How to Sell a Rental Property Step Two: Set the Price
The second step in learning how to sell a rental property is setting the selling price of your investment property. Setting the optimal price might be a bit tricky. However, we have the answer! In order to set the selling price, you should know the fair market value of your investment property. Conducting real estate market analysis will provide you with the numbers as it compares rental comps in the same location and establishes the market value of your investment.
How to Sell a Rental Property Step three: Highlight the Features of the Property
If you want to learn how to sell a rental property for a good amount of cash, you should highlight all the features of a particular income property. The presentation should look like you are selling one of the best real estate investments. Let’s explore, from a marketing standpoint, how the most profitable real estate investments are being sold. The real estate investor should highlight the features that are appealing to potential buyers. This is important due to the fact that most buyers want to be sure that this particular investment property will attract potential tenants as they want the rental property to be occupied most of the time. Or, they want to be sure they are buying their dream home to occupy themselves.
How to Sell a Rental Property Step Four: Do Not Sell the Investment Property on Your Own
Selling an investment property on your own might be tempting as you will be the only one who gets the profit. However, this might be very risky! You should have experience in conducting real estate market analysis in order to estimate the accurate market value. Moreover, you should have the knowledge of legal procedures in order to close the deal. Negotiation is an art, so, if you are not good at this, you may fail in negotiating a good price. That is why it is suggested to hire a professional who knows the steps and is good at selling investment properties.
How to Sell a Rental Property Step Five: Keep the Tenants While Selling the Rental Property
If the real estate investor is your target buyer, then you should definitely keep the current tenants in place. Through the whole selling process, your rental property will generate rental income. Moreover, you will be able to cover rental expenses as well as collect some cash in your pocket. However, you are not the only one who benefits from this. The income property investor will be buying a rental property with tenants. Consequently, this investment property will generate cash flow from day one. Moreover, tenants will not be bothered and will have the opportunity to stay. Thus, it is a win-win situation!
#2 How to Buy the Most Profitable Real Estate Investments
Well, since you sold your rental property, it is the right time to consider buying an investment property. However, this time investing in real estate should bring more money to your bank account. Let’s explore how it is done. Curious to learn more about buying properties? Make sure to read “Buying an Investment Property: Tips That Work.”
Growing Your Real Estate Investment Portfolio Step One: Understand the Real Estate Investing Market
Whether you are investing in a real estate market that is new to you or the location is the same, you should conduct a comparative market analysis to know the current state of the housing market. The real estate investor should analyze the areas of the best real estate investments. For example, he/she should check if a particular location is in high tenant demand and if the population, as well as employment rates, are increasing. The foundation for investing in real estate should be healthy when the real estate investor considers buying a rental property.
Growing Your Real Estate Investment Portfolio Step Two: Selecting the Best Real Estate Investments
How to invest in real estate? Easy, the investor should invest in the best real estate investments. Yet, finding the most profitable real estate investments might be a tricky activity. Consequently, there are several aspects the most successful real estate investors take into consideration.
Location is one of the main determinants of the rental strategy. Depending on personal preference, the real estate investor may purchase an investment property suitable either for long or short term rentals.
Real estate metrics is another thing the real estate investor should take a close look at when buying a rental property. Real estate metrics will tell the investor if the particular income property falls into the category of the most profitable real estate investments. By the way, this step of analyzing investment properties may take you a while. Thus, you may miss the opportunity to invest in the best real estate investments. So, in order to speed up the process of buying an investment property, it is advised to use Mashvisor’s rental property calculator. Interested to learn more about selecting only the best real estate investments? Make sure to read “The Truth About the Best Real Estate Investments.”
Growing Your Real Estate Investment Portfolio Step Three: Negotiations
So, the real estate investor has analyzed the real estate market as well as chosen the most profitable real estate investment, what is next? The process of buying a rental property is not easy at all, as you want to pay less and you want the seller to sell for more. Consequently, if the ability to negotiate is not your strong side, it is advised to hire a professional who knows his/her job. As the chance of making a mistake and missing the opportunity of making money in real estate is high.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.