Creative Approaches to Selling a House
While most of what I do is cash offers, oftentimes that isn’t the best option. Sometimes selling a house results in a big tax hit. Or perhaps you have a rental property and would prefer to get the income over time instead of all it once.
For most sellers, I present four potential options:
- Cash offer – this is best if you need the cash quickly, but it’s also the lowest price.
- Interest-only payments for a fixed term – we agree on a price and interest rate for a period of one year or more. I take title, send you monthly interest payments and pay you the balance after I rehab and sell the home.
- Principal-only payments for a fixed term – we agree on a price and period for one year or more. This is similar to option #2, but typically the final agreed-to price is higher.
- Lease option — in this scenario, you retain title to the property, but I lease it from you for up to five years with the right to purchase it in the future. I also pay you an option fee that grants me the exclusive right to purchase your house at some point in the future. This usually gets you the highest price possible.
While these are the most common options, there are many other creative approaches to selling property. In fact, there are so many options that I co-host the Creative Real Estate Podcast, where we talk to real estate investors, accountants and lawyers about the many options available to you.
If you’re interested in selling your house or rental property in a creative fashion, contact me today for a no-obligation, unconditional offer.