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Selling a House without a realtor

12/27/2021

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Can New York homeowners and investors sell their homes without using a real estate agent? More importantly, if they can, should they? Property owners and investors make these decisions every day. While there are certainly advantages to neglecting the assistance of a real estate agent, those trying to save money will find that it could end up costing them a lot more than they anticipated.

While selling a house without a realtor can be a valuable option for some, a DIY approach can result in costly mistakes and a lot of time wasted for others. In this article, 180 Homes will explore the pros and cons of selling a house without a realtor so that homeowners can choose how they’d prefer to navigate the real estate market. 

How to Sell a House Without a Realtor

Many seriously underestimate the cost of a reliable real estate agent. The price of an agent includes marketing, showings, negotiating, paperwork, and managing the closing process. These items cost money and take up a lot of time. Sometimes real estate agents have entire teams that work underneath them to perform these tasks. Those who may own multiple properties or make a living in property investment typically prefer a realtor to expedite the real estate process as they handle other components of property management. Taking on these obligations can be pretty overwhelming for those interested in selling a house without a realtor, but isn’t impossible. 
When homeowners wish to sell a house without a realtor, they list their home as a “For Sale By Owner” listing. The seller will then prepare their home to be market-ready for touring potential buyers. Independent sellers are responsible for promoting their listing, scheduling open houses, identifying and qualifying potential buyers, and handling the real estate transaction. Perhaps you are fully capable of selling a home yourself. Those with extensive real estate education should have a solid foundation to start, but that doesn’t mean it’s best or saves money at the end of the day.

Pros and Cons of Selling a House Without a Realtor

Advantages of Selling a House Without a Realtor

While selling a house without a realtor has its fair share of challenges, the task is not impossible. If the homeowner can take the time and expend the resources needed to get the property sold legally, then it’s an option worth exploring. Let’s review some of the most obvious benefits of selling a house without a realtor. 

Pricing Control 
When selling a house without a realtor, sellers can guarantee that the final price for the property is the value they want. Realtors will always suggest a price they feel is fair, which might be different than what the homeowner feels is adequate. Sellers can negotiate a price on their terms and have direct communication with prospective buyers without a realtor.

Skip Real Estate Commissions
Every real estate investor or seller looks for ways to save money throughout the real estate experience. One of the most common areas to save on a real estate transaction is closing costs. Reducing, or eliminating, some of the fees will have a sizable impact on your bottom line if you choose to sell a house without a realtor.  

Product Awareness
When selling anything, having a firm knowledge of the product is critical for success. Who knows more about a home than the person living in it? When selling a house without a realtor, homeowners can spruce and improve the space in ways they know would help. Additionally, homeowners are the individuals best equipped for answering any questions buyers might have about the property, neighborhood, and surrounding areas. 

Disadvantages of Selling a House Without a Realtor

For every easy sale completed without a real estate agent, nine others are an issue. If you can’t generate interest or don’t know the specific language on a real estate contract, you will create larger and avoidable problems. Issues are preventable by hiring a professional. Here are five reasons you may not want to sell a house without a realtor.

Advertising
Some properties will almost sell themselves, and a real estate agent doesn’t have to do too much. However, if you can’t generate interest in your property, it is difficult to get desired selling price. One of the biggest roles a good agent performs is getting eyeballs to the home. They leverage the MLS and instantly get the word out to thousands of agents in real-time. Every good agent has a defined marketing strategy that generates interest and creates a buzz with their extensive experience in the field. 

Overselling
You can have the best pictures and descriptions of the property, but it is not enough to get it sold. At the showing, you need to find a balance between being a salesperson and being the owner. If you sell too hard, buyers become hesitant to move forward. A professional agent understands the rhythm of a showing and knows how to provide information appealingly while still helping. A good agent can attract buyers on the fence and get them eager to move forward.

Legalities
There is a lot that can go wrong in any real estate transaction. The glue that holds everything together is the contract. If you sell your property on your own, you had better be an expert in every line of it to prevent anything going wrong. Experienced real estate agents can pick the contract apart, ask for credits and addendums and finalize it cleanly. You can argue that the largest benefit of using a real estate agent is their knowledge of the contract and real estate law. 

Pricing
As much as you think you know the market, your real estate agent likely knows more. If you find a quality local agent, they understand every recent sale and current listing. They can use the MLS to find information and rationale behind every transaction and use that to price your property. As the owner, you are probably biased and think your property is superior to others on the market. This leads you to price higher than you should, decreasing buyer interest which eventually results in a price drop. You are always better off listening to a professional and price properly, right from the start.

Time
Everything from marketing to showings to negotiation is time-consuming. If you choose the wrong offer you are forced to start the process from the beginning and additional time is wasted. Whatever perceived savings you think you gain by not using an agent your time is almost always better spent on other areas. Since you are not an expert you will be forced to find answers to most questions, wasting even more time. Your time is the precious commodity you have. Spend it in areas that give you the biggest return.

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180 Homes Can Help Sell Rental Properties! 

While it’s normal to ask, “Should I sell my house without a realtor?” using a real estate agent is an important area for investment. There are other places where you can cut corners and lower your expense sheet. At the end of the day, getting your home some within the desired timeline for the right price is what matters most. 180 Homes has what you need to maximize your real estate experience with our cash as-if offers for your property. Contact 180 Homes today to learn more! ​

Cash offers can help with selling a house without a realtor!

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Understanding Closing Costs

11/1/2021

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When buying or selling a home, the topic of who pays closing costs is bound to come up eventually. Any real estate transaction will host numerous costs and fees that will be factored into the purchasing process on top of the property’s value. Understanding who is responsible for paying these fees is crucial for properly valuing the sale as the buyer or seller.  Especially for those looking to budget their real estate experience carefully, closing costs can be an important factor when determining if a home is the best investment for your needs. 
In this article, we’ll explore real estate closing costs to help homeowners and potential buyers better understand the process of finalizing a real estate transaction. We’ll also settle once and for all who usually pays closing costs: the buyer or the seller? 

What are Closing Costs?

Closing costs are fees and expenses outside of a down payment that is paid once the buyer closes on a property. Closing costs can be a substantial portion of the real estate investment and can be as high as 3 to 5 percent of the down payment. These fees are calculated from numerous sources, from attorney fees to insurance costs. Each transaction’s closing costs will vary based on the property itself as well as the nature of how the transaction was arranged. The buyer and seller need to be aware of closing costs so that the point of escrow can run efficiently and according to the original listing agreement. 
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Does the Buyer or Seller Pay Closing Costs?


Now that we understand closing costs and their role in a real estate transaction, it’s time to dive into the logistics of buyer and seller responsibility. Buying a home is a huge investment and when selling a home it’s important to optimize profits during the transaction to get the most value out of the home. Closing costs allow the transition of ownership to go smoothly and guarantee that all parties involved, from the real estate listing service to the insurance companies, are properly compensated for the transaction. Generally speaking, the buyer is the party responsible for paying closing costs. However, the closing costs can look different for each transaction and the seller may be liable for other costs unrelated to the transaction itself.

Seller Closing Costs

So do sellers usually pay closing costs? Typically not. While the buyer of a property will generally have more items that require payment than the seller, this doesn’t indicate a complete lack of responsibility on the seller’s part. Especially for sellers who choose to leverage the payment of closing costs to quicken or simplify a sale, it can’t be assumed that the seller is getting off free within a successful transaction. The majority of individuals who sell their homes will do so with the assistance of a real estate agency, and the seller is responsible for paying the sales commissions to any real estate agents that helped the deal take place. This can be a significant portion of the sales price, so those selling their property need to factor this in when listing their home. Some other potential seller closing costs that may come up include:
  • Potential Prorations: Before the buyers assume ownership, sellers might need to compensate buyers for taxes and HOA dues that are paid. 
  • Title Transfer/Insurance Fees: Sellers may need to pay regionally specific taxes or fees for the transfer of the property’s title or title insurance in the case of issues coming up. 
  • Home Warranty Premiums: Sellers will occasionally offer a home warranty for the first year to peak buyer interest. 

Buyer Closing Costs

As we briefly stated, those looking to purchase a new home or property should anticipate financial liability for the majority of the costs associated with closing the deal. This is mainly due to the many steps that are taken to secure a loan for a home’s down payment, as well as the process of properly valuing a property. It’s important to note that these closing costs are not usually paid to one party but rather a collection of individuals that played a significant role in the purchase of the home and transfer of ownership. Some closing costs that buyers can anticipate during a real estate transaction include, but are not limited to:
  • Attorney Fees: Closings that involve an attorney for the buyer, seller, or both will feature fees that typically fall on the buyer. 
  • Loan Origination Fees: Fees associated with processing and underwriting the loan, paid to the lender. This may include credit report fees that lenders will use to determine if you qualify for a mortgage. Lenders also might charge an optional fee in exchange for lower interest rates during the lifespan of the loan.
  • Appraisal Fees: Appraisals are strongly suggested to verify the sale price of the property is a fair one to pay,
  • Inspection Fees: Some lenders might require an inspection before a loan can be approved for a mortgage. This may include survey fees, which confirm the size and dimensions of the property’s land. 
  • Title Insurance: While the seller pays the title insurance costs, for a lender to be protected the buyer will usually need to assume the policy. Title search fees may also be needed for background checks conducted on the title to identify concerning liens for the property. 
  • Escrow Deposits: Lenders might ask for a pre-payment of a few months of property taxes or insurance for financial comfort within the loan’s account. 
  • Record Fees: Every real estate transaction needs to be recorded within local records. These fees are usually paid directly to the property’s city or county. 

Who Can Pay Closing Costs?

While the majority of financial items that fall under the umbrella of “closing costs” tend to lean to the buyer’s side, each real estate transaction is different and closing costs can be easily adjusted. Many sellers will assume responsibility for a portion of the closing costs as an incentive for interest or to expedite the sale of their property. Negotiation of closing costs is fairly common but should always be calculated towards the beginning of the real estate transaction to ensure no one gets blindsided down the line. 
Closing costs can be leveraged by both sides of the transaction to make the process of paying them a bit less overwhelming for the buyer. Some buyers will even make their initial offers with buyer closing costs factored within a purchase price which could lead to the seller negotiating an alternate deal. Closing costs can be an incredibly expensive stage of the real estate transaction, and buyers might be surprised by how many sellers are willing to negotiate these figures for the sake of a simple and streamlined real estate experience. 

Sell Your Home Fast with Help from 180 Homes!

Whether you’re a first-time homebuyer or you’re simply looking to maximize an investment’s value, understanding who usually pays closing costs is a major part of conducting any successful real estate transaction. By properly anticipating what costs will be incurred and delegating these as negotiated, the process of buying and selling a home can become much simpler. 180 Homes can help sellers list their property and have a care-free real estate experience. With cash offers that help sellers move on to the next great investment quickly, 180 Homes can expedite the process of selling your home. Contact 180 Homes today to learn more. 

Pay ZERO Closing Costs when selling your home! Get Cash Offer today!
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does it make sense to refinance

10/1/2021

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Mortgage interest rates have been all over the place in the past 30 days. One day they drop significantly and the next they are on the rise.  If you lock in rates at just the right time, you may be able to time the market perfectly.  Before you celebrate your interest rate reduction there are a few things to consider.  A lower interest rate may not mean a lower monthly payment.  While this sounds hard to believe it is often the case when you refinance.  Getting the lowest possible interest rate is great but there are a few other items to consider.  Before you start your refinance application here are some things you need to keep in mind.
  • Appraisal Amount. A refinance for a primary residence and investment property are not the same. With a primary residence you may be able to get away with a loan amount at 80% of the appraisal amount. With an investment property your loan amount may need to be 70% depending on the type of loan you take. Even if property values are up in your area your home may not appraise for the value you think. The appraisal takes a snapshot of what is currently happening in the market. A sale from six months ago will not have the impact you think. The most accurate values come from sales under 90 days usually within a mile from the property. Getting your property to appraise at the value you are looking for is the biggest hurdle in your refinance.
  • Closing Costs/Property Taxes. Perhaps the biggest difference with a refinance and a purchase is in how the closing costs are paid. In a purchase the closing costs are brought to the closing. With most refinances the closing costs are rolled into the new loan amount. You have the option of bringing the funds to the closing but most people do not. The closing costs are almost identical regardless of a purchase or refinance. The costliest item at the closing will be for the prepaid property taxes. The new lender will restart your escrow account and hold a significant amount of property taxes. Depending on when you close it can be as much as six months of taxes. Between your property taxes and closing costs your new loan will end up being thousands above the amount you currently owe.
  • Decreased Equity. Your new loan amount will directly impact the amount of available equity. Even though equity may not seem important it gives you different options in a pinch. If you needed to sell in a moments notice equity will allow you to walk away without worrying about your bottom line. It also allows you to possibly refinance and pull cash out down the road. With a higher loan amount and decreased equity you may be more inclined to hang onto the property if the market shifts.
  • Longer Term. The most common loan term is the 30 year fixed. As the name indicates this loan has set payments for the next 360 months. Before you refinance you should take note of how many years you have remaining on your current mortgage. In most cases you will be adding on years to your term and starting over. If you had 22 years left you essentially have nothing to show for the last eight years of payment. With the longer term you may be able to save money per month but at the expense of extra years. This isn’t to say that all 30 year terms are bad but you need to weigh the added years versus the monthly savings.
  • Monthly savings. It is possible that a lower interest rate may not equal monthly savings. When you add in the closing costs and property taxes your new loan amount will increase. It is not uncommon for your new loan to be anywhere from $8,000-$10,000 higher depending on the annual property tax amount. The higher your loan amount the less change in interest rate needed to make an impact. A quarter point difference on a $500,000 loan will produce a greater savings than a full point change on a $100,000 loan. Any savings need to justify the increased term as well as the closing costs. You also need to weigh the savings with your long term plans for the property. If you plan on selling in the next few years the savings won’t have as great of an impact.
  • Shorter term/higher payment. As popular as the 30 year fixed is there are other loan terms available. You may consider refinancing out of a 30 year into a 15 year. In doing this the first thing you will notice is how much lower the rate may be. The 15 year fixed works opposite of a 30. With a shorter term your payment will increase in spite of a reduction in rate. If you are not comfortable with the payment you will eventually run into trouble. One alternative to this is keeping the longer term but making one extra principal payment a year. This gives you the security of a more comfortable payment while still reducing your balance over time.
If you are considering a refinance there are a few initial steps you should take. The first is to find a mortgage calculator online and run the numbers.  Add your closing costs to your loan amount to find your new monthly payments.  You should use a conservative interest rate with your estimate.  The next thing you should do is to get an idea of current property values.  Keep in mind that you will need an increased value on an investment property.  If the numbers make sense and you think the value is there now may be a great time to refinance.
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5 Tips to help secure financing

9/27/2021

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One of the biggest hurdles for investors old and new alike is securing financing. You can have everything else with your business in place but without financing you won’t get very far.  How and where you find financing has changed dramatically over the past ten years.  It wasn’t that long ago when lender financing was the only realistic source of funding.  Today between hard money lenders, private money lenders and silent capital partners there are more financing options than ever before.  While finding financing is easier it doesn’t mean it will simply fall on your lap.  You still need to dazzle your capital source and make a solid presentation regardless of who you are talking to.  Here are five tips to help establish and secure the financial backing you are looking for.
  • Know Your Target. It is important that you treat every financing meeting with the respect and importance it deserves. You truly never know who will be the person that catapults your business to the next level. Regardless if you are meeting with your great uncle or a top local hard money lender you need to prepare the same. You should have a little background on what they want out of the deal and what their risk tolerance is. Without a personal understanding of who you are speaking with your presentation will sound repetitive and rehearsed. Don’t forget that you are the one looking for capital. Even if you have closed a few deals you still need to put your best foot forward. This starts with doing a little homework on your target either online or by asking questions to the people around them. The more you know about your target the more comfortable they will feel working with you.
  • Prepare Numbers & Answers. No lender is going to blindly open up their wallet and give you a blank check. You may eventually get to that point but only after you have built up confidence through several deals. As you plan your financing meetings you need to be ready for every possible scenario. It is human nature for a lender to want to know their bottom line potential. This should be the starting point for your presentation. In addition to the bottom line you need to know everything about the numbers, exit strategy options, carrying costs and potential setbacks. You should leave no stone unturned and be ready for whatever question comes your way. One strategy to help with this is to think about what you would want to know if the shoe was on the other foot. The more you know about every potential outcome the more confident someone will feel working with you. Nobody likes to think about the negative but by taking a proactive approach and discussing the worst case scenario you address the elephant in the room.
  • Focus On Benefit. Why would someone want to give you access to capital? As is the case with any potential business partnership there needs to be a net benefit for both sides. For you the benefit is the access to funding and the chance to grow your business. For the lender they want to know that their money is safe and they will see a positive return on their investment. During your meeting or presentation you should constantly revert back to the benefit. Every investor walks the line between risk and return. One of the things that make real estate so appealing is the potential of double digit returns. A private money lender may have money parked in a savings account currently generating somewhere in the neighborhood of 1% interest. They understand there is no risk but the returns aren’t exactly eye popping. For them the benefit is the chance to put their money at work for a strong potential return while letting you handle the real estate portion of the transaction. Whatever the benefit is you need to find it and keep coming back to it.
  • Follow Up Promptly. Even the best meeting may not produce an immediate partnership. You may have set the groundwork of a partnership moving forward but you still need to seal the deal. With every meeting regardless of how you think it went you should follow up within 24 hours. By following up you show that you want to do everything possible to make things work. This also gives you the chance to find the answer to any lingering questions or hammer home the benefit you discussed. You shouldn’t wait for them to contact you. Take a proactive approach and follow up with a phone call or leave a voicemail with an exact day to speak again.
  • Show Personality. One of the things that lenders really want to know is who they are working with. Numbers and returns are important but often times are not enough to secure a partnership. They want to feel comfortable and confident that you are just as vested in the partnership as they are. Don’t be afraid to show your personality. There are times when you should take your foot off the pedal and lighten things up. It is ok to talk about things going on in the community, your favorite sports teams or what is happening with your kids. Connecting with your lender about personal issues can be the final item that pushes the agreement over the top.
Even if you currently use traditional lender financing or have a hard money outlet you can never have enough sources of capital. Use these five tips in your next financing meeting.
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Guide to Selling your house during covid-19

9/20/2021

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In this article, we’ll explore how the eviction moratorium has affected landlords and rental property owners, how the pandemic has reshaped the current real estate market, and some strategies for selling your home during COVID-19. By being adaptable and understanding regulations related to rental investments, people can navigate the current real estate market more efficiently. 

Guide:
  • How Has the Pandemic Affected the Real Estate Market?
  • What the Eviction Moratorium Means for Landlords and Rental Owners
  • Strategies for Selling a Home or Rental Property During COVID-19
  • How 180 Homes Can Help

How Has the Pandemic Affected the Real Estate Market?
The coronavirus pandemic undoubtedly had a tremendous impact on the real estate market, and the duration of its consequences is hard to determine. The span of COVID’s effects has influenced the entire span of real estate. Stay-at-home orders have resulted in fewer houses on the market, increasing their demand among those looking to buy homes. Interest rates have lowered, so there has been an increase in individuals looking to purchase homes or rental properties as their purchasing power has effectively increased. Due to widespread economic hardship, many renters have been unable to make their monthly rent, which resulted in the CDC imposing a federal eviction moratorium invoked in March of 2020 under the CARES Act. 
All things considered, people still need a place to call their home and real estate is a never-ending industry. Homeowners and rental property owners need to adapt to the current market to sell their homes, manage their tenants, and ensure they make educated choices during this hectic period. Let’s explore what the eviction moratorium means for landlords, tenants, and homeowners protected under the CARES Act.

What is an Eviction Moratorium?
The eviction moratorium was imposed by the CDC to assist those that have suffered from financial trauma due to COVID-19, whether it might be a loss of employment or medical bills that have resulted in non-payment of rent. The order doesn’t remove the possibility of late fees or penalties charged by the rental property owner or landlord, nor does the eviction moratorium allow tenants to break their lease outside of nonpayment scenarios. As of July of 2021, the eviction moratorium was extended for parts of the country that are still struggling in their case numbers of COVID-19. The eviction moratorium has very specific requirements for eligibility. It’s not as if any tenant who wishes to skip rent can use it to their advantage. Tenants need to apply to government assistance programs and qualify under the CDC’s requirements. 
To qualify for protection, tenants need to:
  • Provide income information 
  • Prove inability to pay rent 
  • Make their best efforts to pay rent as much as possible
  • Be in a position in which they have nowhere else to turn 

While meeting these requirements may deem a tenant eligible, there are serious ramifications if application info is falsified. After ensuring they have verified eligibility, tenants must fill out and send the CDC’s declaration form to their landlords or rental property owners to indicate they are covered under the moratorium. Once the tenant has followed all required steps and provided this documentation, renters are unable to evict the tenant due to nonpayment of rent.

What the Eviction Moratorium Means for Landlords and Rental Owners
One of the biggest takeaways from understanding how the eviction moratorium affects landlords is that legal advice is valuable. Each state is different in how its eviction process works, and knowing the correct steps to take as a home or property owner renting their space is crucial for success. Often times, reverting to a local expert could be the best decision if things point towards an eviction. Real estate lawyers are a great resource for understanding what to do if tenants are not paying their rent. Here are some of the biggest points for landlords and rental owners to consider during these unprecedented times.

Evictions Are Still Possible
The eviction moratorium was put in place to assist individuals who have suffered a substantial financial loss that has resulted in failure to pay rent. That being said, tenants are not only evicted due to non-payment of rent. If the tenant needs to be evicted for reasons non stated in the moratorium, such as smoking in a non-smoking building or otherwise violating their lease, an eviction can still be pursued. It’s just important for landlords and property owners to verify all necessary information before moving forward with an eviction toward a potentially covered individual. Additionally, it’s also possible to sue people for rent rather than eviction, which effectively sidesteps the eviction moratorium. Most tenants will want to avoid legal complications and small claims court.
Explore Month-to-Month LeasesSomething that’s become increasingly common during the pandemic has been month-to-month leases. Typically, renters are accustomed to year-long leases but having a month-to-month option can be an appealing selling point for renters as well as an advantage for landlords and property renters. Month-to-month leases allow tenants to have a bit more flexibility in their living situation which can be helpful during a time of economic uncertainty. On the flip side, renters and landlords can replace current tenants easier by not renewing to tenants who have not paid their rent. Non-renewal is not an eviction but still allows landlords to save some of their sunken profits in situations of month-to-month renters not paying rent. 
Communication is KeyAs any landlord or rental property owner is well aware, healthy communication is the only way to have an accurate snapshot of your tenants’ needs. Communication is especially important for both renters and tenants during this time. Covered tenants are required to accurately follow the steps of the moratorium and communicate with their landlords of complications paying rent, and landlords should be responsive and document all correspondence. The eviction moratorium is put in place as a temporary halt on evictions, but tenants are still expected to pay their rent in the future. Keeping track of all tenant communication is highly suggested, not only to be able to guide them through the moratorium requirements but also to provide evidence if needed down the line.
Renters Have Assistance, TooFor homeowners choosing to rent out their space, it’s important to understand that housing qualified individuals under the eviction moratorium may result in financial losses and the inability to pay their own mortgages down the line. Similar to the eviction moratorium, the foreclosure moratorium was put in place to help homeowners place a pause on federally-backed mortgages. Despite this ending in August of 2021, if a home or rental property owner applied for forbearance under the Cares Act and is still struggling financially due to pandemic-related hardship, they may be eligible for an extension. 
It Might Be Time to SellAs with any major investment, rental properties are all about generating positive cash flow. When it comes to how the eviction moratorium affects landlords, it’s certainly adapted the way they have to view their rental property investments. Especially for those renting out a home, selling your house during COVID-19 could prove to be an intelligent decision due to the current demand within the housing market. If a rental property is not generating revenue from its tenants, sunken profits can be highly anticipated. The eviction moratorium has provided landlords challenges, but the pandemic as a whole has provided insight into the success of a rental property and how much revenue the property is truly bringing in. If landlords are only projected to lose profit, it might be the best time to sell.

Leave your tenant worries behind. Get a Cash Offer for your property today!

Strategies for Selling a Home or Rental Property During COVID-19
Even with the backdrop of a pandemic extremely present, the real estate world does not stop. In terms of how the eviction moratorium affects landlords and rental property owners, it’s provided an opportunity to move forward, and in many cases sell. Many rental property owners and home sellers are simply waiting for the right time to list their homes and find a buyer. As difficult as it may appear for rental property owners to consider marketing their investment within a pandemic, you can still sell your home in today’s market. 
From a buyer’s perspective, now could be seen as a great time to buy. Interest rates have once again dropped to all-time lows and many lenders have loosened some of their most restrictive guidelines. With states and individual companies embracing remote work schedules, buyers have more time than ever to investigate and research their dream home. While COVID-19 is changing the way you may go about it, selling your home or rental property is still very possible. If you’re wondering how to sell your house during COVID-19, here are a few strategies for selling your home during COVID-19 as we continue to fight against the coronavirus and its variants.

Leveraging Technology to Sell Faster
Over the past year, many real estate agents have shifted how they preview and show their listings. To maximize their time, they have started producing property virtual materials for websites or public viewings. Homeowners or rental property owners can easily take videos of their property for agents to share with prospective buyers who can view these materials and quickly decide if they’d like to move forward. The benefits of these virtual materials will outlive the pandemic as an appealing option for non-local buyers to view properties that they might have struggled to view or gain interest in originally. Virtual staging, 3-D tours, and video tools such as FaceTime and Zoom have completely transformed the way buyers can get the first impression of a property, and utilizing these technologies to perform real estate tasks is a smart decision.

Utilize Modern Marketing
In a traditional real estate transaction, initial interest is usually derived from an alert through a multiple listing service (MLS), a database utilized by real estate brokers for information regarding properties for sale. In modern markets, sellers and real estate agents have become more creative. The most common starting point nowadays is social media and online marketing. With an uptick in remote work, there has been a subsequent increase in online traffic. Sellers can use this to their advantage for organic interest in the listing through virtual tours, video tours, sponsored posts, linked websites, etc. This allows buyers to access facts and data regarding a property more often, with many of these online resources also providing alerts to agents, investors, and brokers to see new listings. By adapting to modern marketing techniques, exposure shouldn’t be an issue when selling a home during the coronavirus pandemic. 

Showing Your Property (Carefully)
As much as a virtual property tour or dedicated online marketing campaigns can provide valuable property information to potential buyers, nothing can replace the confirmation a buyer receives from physically walking through the property. Especially with the increase of vaccinations, if there is true interest in the property it’s likely that the buyer will want to see it in person. It’s important to note that not all prospective buyers or sellers are vaccinated, so it’s important to still follow county and individual state regulations regarding COVID-19. The bottom line is that if a buyer needs to put eyes on the property, they are still allowed to, so sellers should be aware of local guidelines when selling their home during COVID-19.

Contact 180 Homes for Help Selling Your House or Rental Property During COVID-19

The coronavirus pandemic has caused changes in local real estate practices and procedures that will become the new normal in a few years. While it has altered the way homeowners and landlords have conducted their business, COVID-19 doesn’t have to be a major roadblock in your real estate experience. At 180 Homes, we’re passionate about helping homeowners sell their homes with cash offers that can speed up the entire transaction. Additionally, 180 Homes has valuable insight into selling rental properties for landlords and rental property owners looking to make a change. 
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4 sources of capital for your next deal

9/13/2021

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The first step of any real estate deal is securing financing. Any grand real estate plans you have are based on your available capital. It will directly impact the market you choose, the purchase price, repair budget and everything about your transaction. One of the most common complaints in the investing business is the inability to find financing. What savvy investors know is that with a little digging there are multiple options available in almost every market. Depending your investing style and goals some of these work better than others.  Never let a lack of capital stop you from pursuing a deal.  Here are five popular sources of capital for your next deal.
  • Bank Financing. Depending on your investing goals bank financing can be your initial starting point in finding capital. Bank financing is best used for buying properties you plan on keeping for the long term. With bank turnaround times near 45 days coupled with low interest rates this becomes a viable option. There are a few hurdles when working with a bank. Gone are most of the programs for borrowers with any kind of damaged credit. Today’s investor programs require a mix of above average credit scores coupled with low debt to income and a significant down payment. If you are weak in any one of those areas your approval will be in jeopardy. On the positive side lender financing gives you the ability to take advantage of record low interest rates with a reasonable amount of closing costs. There are certain programs, like FHA, where first time homebuyers can purchase a 2 family house with just 3.5% down payment. Under this scenario they can live in one of the units and rent the other side all the while gaining valuable landlord experience.
  • Private Money. The odds are you probably know more people interested in investing in real estate than you realize. In a nutshell that is what private money is. You find a friend, family member or co-worker that has surplus capital they are willing to invest in real estate with you. This partnership can be a onetime deal or something that you continue for the long term. In the simplest terms you supply the deal and they supply the capital. You can take care of the day to day operations and they provide the financial backing. The beauty about private money partnerships is that there is no set structure that has to be achieved. You can allocate the work load and returns any way you desire. The most important thing is that you get everything on the table as before you get going. As great as working with someone close to you is it can also turn ugly once finances come into play. The more you discuss before you start the easier the relationship will be.
  • Hard Money Lenders. Over the past five years a flood of hard money lenders have entered the real estate business. While they may sound intimidating hard money lenders are a great source for capital. These are individuals or groups of individuals who lend money as an alternative to big banks. They have a set of terms, fees and guidelines that are agreed upon before any funds are issued. On one hand they are similar to traditional banks but on the other they couldn’t be more different. Instead of evaluating credit score and tax returns they look at the property and the potential profit. They can use personal assets as collateral and don’t follow the same underwriting guidelines that big banks do. Working with hard money is very similar to having a personal line of credit. This access allows you to make offers with quick, cash closings and close more deals. If you reach out to your real estate agent, attorney or mortgage broker you can quickly find a hard money lender. Additionally they are at most local real estate investment club meetings. Hard money lenders may not work for every deal but they should be considered for rehabs and flips that benefit from quick closings.
  • Existing Portfolio. You may be sitting on capital without even realizing it. If you are struggling with options take a look at your existing portfolio. Sift through every property you own and evaluate the available equity. Property values have increased over the past few years. You may have more options with your property than you think. Increased equity allows you to explore the possibility of refinancing or taking a second mortgage. With rates still low you can pull cash out and still maintain a comfortable monthly payment. The same is the case with a second mortgage. A home equity line of credit (HELOC) allows you to keep your first mortgage in place and use the HELOC to borrow from. You only repay on the capital you use and most second mortgages offer a low interest only payment option. Additionally the fees and expenses with a HELOC are minimal, at best. A final option you can find in your portfolio is the option of selling a property. You may have been waiting for the right time to sell and feel that trying to time the market perfectly is too much of a challenge. By selling and reinvesting those funds you may be able to avoid any tax penalty and get a property you really want.
With just a little legwork you can find available capital. Use these four options as a starting point for your next deal.
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