Home Selling Challengs

Investment Property

Investment Property Liquidation: Investment property can be an extremely profitable venture if it is managed properly. The problem is most investment property is a part-time investment for owners with full-time jobs. As a result, many absentee owners don't have the time to manage them properly and have thus allowed their properties provide them with poor returns... and this is just the ones with paying tenants. If you add the challenge of poor tenants (or no tenants), below market rents, legal fees, excessive management or maintenance fees, then the investment property heads into a negative spiral and loses even more of its value and provides an even smaller return. Finally, add to this the challenge of an out-of-town landlord and an investment property can become a significant weight around the neck of its owner. As a result, we have spent 20 years developing and refining our Investor's Advantage Program™ that allows investor owners to liquidate these diminishing assets and move their money into more profitable and manageable assets. We will work with investors to provide an all cash, as-is, no fees offer professionally tailored to their personal specifications. In fact, we can even take over existing tenants, work with you on your §1031 exchange, and assume responsibility for outstanding issues like problem tenants or maintenance surprises. We make selling simple. The following are just a few examples of investment property challenges and how we've helped owners turn their equity into more profitable ventures.

Bad Renters: As mentioned above, bad tenants can quickly turn a reasonable investment into a losing proposition. Failing to pay rent and violating the terms of the lease are just the tip of the iceberg. A bad tenant can very quickly cause extensive physical damage, cost an owner thousands of dollars in legal fees, bring in all sorts of undesirable pets and guests into the home, and overall just make it very difficult to even show the home to a prospective buyer, let alone sell it. As a result, we have developed our Investor's Advantage Program™ to address these roadblocks and make selling an investment home incredibly easy and straightforward. In addition to providing investors with an all-cash, as-is offer, we can even assume the lease (and the problems) of a difficult tenant and allow you to move on to your next investment.

Vacant Property: We often see investment property that has been sitting vacant for a year or more. Investment property owners are notorious for allowing their property to sit vacant while they "sort out" their options and determine the best course of action. All the while, the grass is growing, the heat is off, squatters sometime move in, the property becomes harder and harder to sell, and their overall return drops like a rock. The avoids this downward spiral by moving very quickly to provide an as-is, all-cash offer…even before the tenants moves out. We can then tailor a custom offer that closes almost immediately after the tenants move-out (or sometimes before) so that the investor can 1031 their money into their next investment and keep it from sitting idle while the property deteriorates. If, however, the property has already been sitting vacant for an extended period of time, our 20 years of experience allows us to see the true potential in the home without getting distracted by the long grass and the raw, unfurnished, and chilly interior.

Multiple Properties: Many experienced investors have accumulated a collection of rental properties over the years. Most often these are filled with long-term tenants paying below market rents in properties that have had few, if any, updates over the years. The owners often want to sell either the whole lot to tap into their equity or slowly liquidate one property at a time for tax reasons. The trouble for these investors lies in finding the funds to bring them up to financeable and marketable condition while the tenant continues to provide a steady stream of income. If the properties have significant deferred maintenance, the cost for improvements could be substantial, not to mention challenging with a tenant in place. In addition, if the desire is to sell all the properties together, then there are very few buyers set up to purchase the whole portfolio for cash in their as-is condition. We, on the other hand, have the experience and a solid source of funding to purchase either one or the whole portfolio at a fair price yet without the owner so much as spending a dime on improvement. Our 20 years of experience allows us to very quickly assess the entire portfolio and provide the owner with an all-cash, as-is offer that meets their specific timelines and needs.

1031 Exchange: Since one of the benefits of owning investment property is the ability to do a tax-deferred exchange, many owners want to coordinate the sale of their existing property with the purchase of a "like kind" property. The obvious challenge is finding a buyer that will work with the investor on coordinating the timing to ensure IRS timelines are met, transferring the funds into a profitable new project, and working with a 1031 exchange facilitator that can guarantee a smooth transition. If any of these three legs comes up short, the whole transfer will be put in jeopardy and, even worse, the investor may face substantial tax consequences. At Phoenix Redevelopment, we have successfully worked with on hundreds of these types of exchanges with our partners at Ticor Title. As a result, each investor has achieved their goals of a seamless transition from one investment to the next.

Out-of-Area Owners: Given that many investment property owners live out of the area, selling an investment property remotely can introduce a whole slew of additional complexities. From preparing the property for resale to coordinating signatures on the transaction paperwork to simply "keeping an eye on it" while it sits vacant, an investment property can add many more layers of critical tasks that must be managed carefully for a successful sale. Even selling the property to a direct cash buyer like Phoenix requires careful coordination and an experienced, professional buyer. There are so many moving parts that there must be a logical and clear plan in place to ensure all the players are on the same page to ensure success. At Phoenix Redevelopment, we have developed the Investor's Advantage Program™ to address these exact concerns. This step-by-step program is designed to systematically approach the multitude of issues (and potential roadblocks) in an out-of-state transaction and resolve each one. At Phoenix, we make selling simple... even if you're thousands of miles away.