Real estate investing is a dynamic business, and it is not only about buying investment properties. Frequently it is also about selling your rental properties. While growing your real estate investment portfolio should be a constant goal, this doesn’t mean that you should never ever sell a rental property that you own. Sometimes there are valid reasons to put your investment properties for sale, with the ultimate goal to actually grow as a real estate investor. For example, it might be a good idea to sell a rental property to replace it with two cheaper ones which together can bring you more positive cash flow. Or if you have an investment property in a hot seller’s market, you might opt for selling it and buying a new rental property in a buyer’s market. But there comes an important question: How do you go about selling your investment properties for sale? Let’s figure out the best ways to do that.
1. Talk to your tenants
Your tenants chose to live in your rental property for a reason – whether it is that they really like the property, or that it is located close to their school or job, or that they very much enjoy the surroundings… Maybe they like your rental property so much that they would like to live there in the long run. So, as soon as you decide to put your investment properties for sale, talk to your tenants and ask them whether they might be interested in buying the rental property under consideration. That should be the very first thing you do anyway because you need to warn your tenants that they might need to leave the property soon, within the timeline set in the leasing agreement.
If you are trying to sell your investment properties for sale to your tenants, it is important to remember that these people probably don’t have too much money in their bank account; otherwise, they will most probably not be renting your property but owning their own home. So, be ready to make a deal with them. You might offer a really good price for the convenience of not having to look for other homebuyers or real estate investors, or you might arrange that the tenants pay you directly over the course of several years, without going through the bank. After all, these are people whom you have already screened before letting them inside your investment property, and they have been paying you the rent on time for some time, so they must be trustworthy.
2. Explore within your real estate investment network
Another advantage which you have over regular home sellers is that you as a real estate investor have a vast and diverse real estate investment network. And you should try to benefit from it on any occasion such as when putting your investment properties for sale. Your network must have such real estate professionals as other real estate investors and real estate brokers, who might be very much interested in buying your available rental property. After all, that’s a property which has already functioned as a rental for a few years, so tenants in the local housing market are likely to be aware of it. Moreover, since you know the members of your real estate investment network and they know you, it is always easier and safer to work with them than with other people you are not familiar with.
3. Find a real estate agent
Since for you real estate investing is a business, you are actually making money from it (hopefully!), which means that you can afford spending a few hundred dollars on a good real estate agent to find you the best buyers and make you the best deals for your investment properties for sale. While homebuyers and home sellers are common people who don’t have extra cash to spend on real estate brokers, it makes sense for real estate investors to work with agents to save time, which they can put towards running and managing their other investment properties. After all, once you put your investment properties for sale, all you care about is getting the highest possible price for them, so there is no need to waste more time and efforts on them.
4. Put a sign “For Sale”
Selling investment properties for sale doesn’t have to be drastically different from selling other real estate properties. Even if you decide to try out the options above, it doesn’t hurt to put a sign “For Sale” in front of your investment properties for sale to try out your luck with random property buyers. So, by all means, do that. Any marketing strategy that doesn’t cost a fortune is a good one.
5. Organize an open house
Another thing which you could and probably should do to market your investment properties for sale is to organize an open house. Put signs around, hand out flyers, advertise it in the newspaper, spread the news in your real estate investment network, etc. – make sure that as much potential buyers as possible hear about your open house and attend it. As a real estate investor, you are a professional who will be able to advertise your property well once people come to see it. The good thing is that since you deal with investment properties for sale, both real estate investors and homebuyers as well as real estate brokers will be interested in attending your open house and buying your property.
6. List your investment properties for sale on a website on in a newspaper
Lastly, you can always list your investment properties for sale the good old way. Whether it’s on a website or in a newspaper, find some good but relatively cheap sources and create listings there. Eventually, investment properties for sale are real estate properties for sale, so they can be marketed and sold in the regular way.
Selling a rental property is yet another way for a real estate investor to make money – through real estate appreciation. Moreover, it is one of the most straightforward ways to expand your real estate investment portfolio – by replacing one rental property with two. Thus, the process of selling an investment property should be taken seriously. Follow the tips above, and you will make the best deals on your investment properties for sale.
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