I’ve been getting a lot of questions lately from our clients about selling their investment properties.
As you can imagine, with this sellers’ market, everyone with a rental has thought about selling.
I mean, we’re in a once in a lifetime window right now. Really savvy investors know it…… and want to take advantage of selling. It’s a perfect selling situation.
Then on top of that, all of the sudden, everyone wants to be an investor. We have a lot of investors looking for properties right now.
There is such a small opportunity of timing before this window closes, we’re getting calls every day from landlords asking questions about selling.
I wanted to answer the top 6 questions I’m hearing. The number one biggest question is:
1. Can I sell my rental with the tenant in it?
YES. We do it all of the time. Actually, over the past few months, we’ve been doing this for sellers a lot. The list you see on the screen of rental houses we’ve sold recently. Almost all of them with an ongoing lease.
2. What happens with my tenant?
The tenants lease and lives will not change. The lease stays in place and all of the current conditions remain. Their deposit moves over and we take care of all the details. It doesn’t affect them.
3. Will this stress my tenants out?
The truth is, that’s how it’s presented to them. Some of them do immediately get concerned, but we’re very experienced and equipped to explain and set their minds at ease.
Landlords are often very nervous about telling the tenant. We understand this. We’ve gotten pretty good at and discretely and diplomatically cover all the details with them.
4. What about inconveniencing my tenants?
This is a really big priority to us. Cooperating with these tenants is very key. We work with them and make this process as painless and as quick as possible. We know that in many cases this is stressful to them. We make this easy and smooth for them.
5. Will we have to sell lower than the market with a tenant?
You know… historically, this is the case, but that IS NOT the case now. There is such a demand for these properties today; this is NOT a factor right now. Actually, most of the properties I put on the screen earlier were sold above the market.
We find investors or regular buyers that are willing to wait. We have a database of hundreds of active investors and buyers. Investors today are quite aware that there are no deals. They are paying full market value for these properties and having a good, paying tenant is very appealing to them.
6. Should I sell now or wait.
Well, that really depends on your situation. Do you want to get your money out for other purposes? IF you want take advantage of the market and cash out. IT’s perfect. Right now, TODAY, you can maximize your profits. But if you like being a landlord and want to continue building equity and sell in 5 or 6 years. The rental market is really good too. Rental prices are at an all-time high and the rates are at an all-time low.
The real answer is what’s right for you.
Keep in mind, there are tax considerations. Capital gains considerations. You may very likely be exempt from taxes like the homestead exemptions. You can do a 1031 exchange. We can help you with this.
Just let me know if you have any questions about that. I can point you in the right direction.