Are you looking to sell your house, but find your circumstances to be unusual? If so, you are not alone. We hear from sellers every day who have challenging situations where a traditional approach to selling their home just won’t work. For example, a job transfer that requires a fast move to somewhere far away, or an inherited property that is in bad disrepair, or a family situation that calls for flexible terms (ie extended close date, rent back,,etc.). As discussed in my previous blog, private investors serve a purpose to help in these and many other “unusual” circumstances. Share your goals, and in most cases a solution can be found. The beauty of working with private investors is that they can generally offer the flexibility and creativity needed to help you solve your problem.
But be careful, because not all investors are created equal. Besides obvious factors like experience and money (both critical to providing a successful solution), there are other factors that will either help you or hurt you. Does the investor have a team of people that will help him or her execute a smooth transaction? How experienced is their team? Does the investor have a consistent track record of following thru and closing on all their transactions, or do they let small hurdles become large hurdles? In other words, how willing are they to work with you if new challenges arise? What about their quiver of tools to give you choices and help you solve any problem? Perfect examples are seller financing, sale lease-back options and rent-to-own solutions. These might not be right for you, but it is nice to know that you are working with a professional that has the knowledge and experience to help you out of just about any problem.
How do you learn whether the investor you are working with has these qualities and resources? Ask, ask and ask. Talk to the investor, as well as the members of their team. And then, ask their references (at least 4 or 5 of them). Do they understand and operate within the local market (this is critical since all real estate is local). Finding out where they do most of their business is easy to learn. Take the time to do this. In addition, I think that an investor who is closely aligned with a realtor(s) or has their own agent or broker license offers a huge advantage over somebody that does not have that level of expertise. A DRE license check can help you determine quickly if this person is in good standing with his association. Lastly, do you have a good rapport with this person, because you will be working closely with them over the next few weeks.
Next time, we’ll talk about some of the more common solutions that investors can provide and why it is important for you to know all your options.