I have a couple of properties in Memphis, TN that I want to sell. I heard through my property manager that some investors have had some success advertising through Craiglist. They list them as turn-key real estate investments. I've been thinking of doing this myself, but have never sold a home this way before. What I need help with is...
1. Is this the best way to go or should I use a real estate agent?
2. If I did go this route, would I need to get an attorney's office to handle the paperwork and escrow?
3. Should I try selling locally through an agent to try and include non-investors in selling the properties?
Any help would be appreciated.
Depends on if the properties "highest and best use" money wise is selling to a homebuyer, rehabber due to condition issues, or a buy and hold investor for rental income. Also a factor is if you are looking to do a 1031 exchange on these properties and tax defer into other properties or you want to sell and cash out with paying the capital gains tax.
The timeline you want to accomplish this in will also determine options.
Determine what you have and who the target buyer is.
Look up Chris Clothier on here. He manages thousands of these houses and might already have investors that would buy them or he might.
Welcome to BP. You will definitely get the help you need here ;-)
@Joel Owens covered the key factors: timing, best use, condition, desired price.
You can try to sell yourself through CL. You would just need a Purchase and Sale Agreement if you get a buyer that way. You can get referrals for a Closing Attorney right here on BP as well as any other help you need.
Another option to a straight out retail or wholesale sale is to offer seller finance. These are always super popular and especially right now.
I will send you a pm.
Happy & Prosperous New Year!
I am a licensed Realtor here in Memphis. Send me a PM with the addresses and I can give you an idea of what they are worth.
In order for another say turnkey provider or even another wholesaler to help you move them there would need to be a decent profit margin in there for that person.
You might also find that many people dont like to purchase homes with tenants in them due to deferred maintenance, older rehab, rent not high enough, those things.
Let me know what you have and I will do what I can to get you some legit info.
Are you going to sell and "cash out" (e.g., pay the taxes) or will you be reinvesting in other investment real estate in other locations? If you are going to reinvest, you should consider the 1031 Exchange as recommended by Joel above. The 1031 Exchange would allow you to sell your current properties and defer the payment of your capital gain and depreciation recapture taxes by reinvesting in other investment properties ("replacement properties").
I would assume you bought these as "cash flow rentals" and its not per se home you lived in and rented out when you moved etc.
So based on the assumption these are cash flow rentals.. the reality of reselling them will largely depend on AREA of town... Quality of the homes. And past performance of the tenants. If all of those are top shelf you could list with someone like Curt who would put on MLS and sell for you.
If they are not marketable on MLS means you have TK type stock and that is near impossible to resell without a TK marketing company doing it for you, Like Curt mentions and they are not going to sell one of yours when they can sell one of their own and make 15 to 20k.. as opposed to selling yours and making 5k commission if that makes sense.
Its one of the big shockers that those that buy turn key learn when they try exit.
One of other site you may consider is ********** And or put it on the market place here on BP.
I have some lower end Memphis stock I bought at tax sale and I offered it to a few BP players here and basically got offers at wholesale prices which is understandable .
Good luck with it.
YOu can try Craigs list in LA and SF bay area those would be the first two I would try.
report back and let us know how you make out.
Had 83 houses that I bought after the crash I held them for a while and sold them off in a matter of a few months.
I made 2 Million Dollars doing this over 4 years.
You need to find the Investor Buyers in the area of where your houses are and then Market to them.
Thank you everyone for you help. Would it be helpful to give the addresses of my properties so I can get more specific advice or am I better off keeping that private. Also, if I have tenants in leases in the properties right now what are my options?