Some view real estate investors as savvy individuals looking to exploit their hard work for personal gain, but there’s actually a lot of good that the duo of an investor and agent can provide to a neighborhood. To better understand how investors are making a difference, you need to know how the agent-investor combo is helping homeowners in Salt Lake:
Agents Pinpoint Investment Opportunities
The first job of any real estate agent is to find leads and pursue those leads.
In the case of an agent that is working with an investor, the agent will find properties that can be purchased quickly and easily to be renovated or turned around to rent or sell. They focus not just on profit for the investor group but also good value for the buyer or renter in order to make the transaction a success.
Sometimes this means trying to find properties that aren’t actively on the market, and contacting the homeowner to see if they would be willing to sell. Since the investor is pursuing your property and being clear about their intentions to purchase from you, this gives you some leverage in negotiations and can speed the entire process along.
Even a lone investor is likely looking to complete upwards of a dozen real estate transactions every month, so speed is critical to their profit margins.
Speed Can Be Good
Since the investor depends on being able to put together deals quickly and close transactions, this could mean you’re able to move forward with your own plans faster than expected.
When you’re selling your home to a typical buyer, you can almost always expect a period of two months from accepting an offer until closing the transaction. If you have an investor interested in your property, the transaction could be closed within two weeks.
The reason for this difference in speed is that an investor is not waiting for a mortgage lender to go through the time-consuming processes involved in paperwork and underwriting the loan. There isn’t any waiting to lock in interest rates or hesitation on closing.
Once an investor begins a dialogue with you on the purchase of your property, chances are unlikely they will be dissuaded unless they feel the deal is not going to work out well enough for them.
Financing Is Not an Issue
Speaking of mortgage lenders and the process that comes along with using one, an investor is usually independent from mortgage lenders.
An investor or investment group will already have their financing ready to go on day one, and you won’t find yourself needing to wait for accountants to comb through financial disclosure forms, bank statements, and credit histories.
It’s possible that the investor will make a simple cash offer and then be ready to start putting everything together if you accept. This can be incredibly beneficial in helping homeowners looking for a quick sale.
If you do decide to sell your home to an investor, there are a couple of things that can make your life easier moving forward.
Some investors could be willing to make the sale contingent on a sale-leaseback, which means the investor buys the property and then leases it to you for you to continue living there for a period of time. You then have the option to purchase the property back, renegotiate terms, or move out, depending on your agreement.
The last extra bit of flexibility provided to you is scheduling closing and your moving situation.
An investor will understand if their offer came as a surprise to you, and they will want to work with you to make your transition out of the home as painless as possible.
Feel free to discuss the terms of closing and your leaving the property during negotiations, and make sure you’re comfortable with every bit of it before you sign anything.