I was at a real estate investor mastermind meeting last week and was introduced to a simple concept that I think has the potential to revolutionize the way you sell your real estate deals.
It’s an idea most of us intuitively understand, but probably haven’t formalized into an actual strategy that can be used literally anytime you sell a property. In a nutshell, it’s about positioning yourself so that you control the selling side of a transaction. When implemented correctly, this strategy not only makes the sales process smoother and less cumbersome, it also enables you to increase your margins.
Ask a typical real estate investor what his last sale was like and chances are you’ll get a story along these lines:
Typical Selling Scenario
After rehabbing the property to the nines, I listed it for sale somewhere near the top of the neighborhood. There were recent sale comps of 189K, 185K and 192K … but none of them were as nice as my property so I listed mine for 199K. The property sat on the market for 45 days and so I took the first offer that came in at 190K. During the due diligence period, the buyer determined that certain items needed to be upgraded in order to meet their expectation of the property. Not wanting to lose the contract, I ended up lowering the price by 5K to satisfy the buyer and allow them to make the upgrades after closing. Instead of selling for 199K as I had hoped, I ended up settling for 185K and got pushed around by the buyer in the process.
Now how many of us can relate to this story? I know I can. For years, I’ve listed retail properties at the high end of the …read more