Real Estate Investors and Their Advantages Selling your home to a local investor is often a clear-cut process. There are essentially four kinds of investors: buy and hold investor, wholesaler, flipper, and buy/flip/hold investor. Buy-and-Hold Investors Simply put, this type of investor buys rental properties. They may or may not manage their properties personally, but all of them would like to see growth in their real estate portfolio.
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Wholesaler
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This type of investor will not hold your property for long, and may sell it to another investor after 10 minutes of the purchase. Flippers These investors are the ones you see on reality shows on TV. They pay a very low price for the worst house on the block, repair it and make it attractive, and sell it for a good profit. Buy/Flip/Hold This is a combination of Buy-and-Hold and Flipper Investors and where we usually find our sweet spot. The owner has to let go of a distressed property because of financial difficulties, job relocation, inheritance, divorce or any other issue. The investor buys the distressed property, flips it and turns it into a rental. Plenty of investors combine the three types while others only do one. The amount the investor pays depends on specific factors, like the property’s condition and that of the market in the area. If you advertise your property for sale, investors will probably come to you, especially if the right keywords are used in your description, like “needs TLC” or “fixer upper.” Even without listing your house for sale, investors may still come to you. However, there’s no need to wait for an investor to find you. You can always reach out to those who are in your locality. So what advantages await you if you sell your home to a real estate investor? 1. Quick and easy cash Investors don’t usually have to get a mortgage, and you don’t have to anxiously wait for the bank to decide if you can get a loan or not. In most cases, they pay in cash, and since mortgage is out of the picture, they can close the deal more quickly than any standard buyer. For investors, closing can be as quick as two to four weeks. With that in mind, you can decide if the speedy sale is worth the cheap price you may have to sell your house for. 2. No need for repairs As opposed to a buyer searching for their perfect move-in ready dream house, investors won’t need you to do repairs or any other job on the property. Instead, they will take care of all the work that may be necessary to restore the home. Of course, you can expect a cheaper offer, but things will even out in the end if you have the right investor. There may be more advantages if you sell your home to an investor, but these two are undoubtedly the most significant.