Thinking about selling your home and wondering “should I sell my house to an investor?”
Selling a house to an investor can be a quick and easy solution for those who need to sell their house. However, selling to an investor is not the right choice for everyone. It is also important to know that there are both advantages and disadvantages to this type of transaction as well.
While selling to an investor takes the hassle out of selling a home and makes it a quick and easy process, and can eliminate the need to invest money in the property to bring it up to retail market condition, it also means you will not be receiving top-dollar for the property because the investor has to make a profit to stay in business.
A good example of these types of transactions is when someone inherits a property and needs cash fast, or when someone has damaged property that they can’t afford to fix. In these cases, it is more convenient for the seller since they don’t have to deal with all of the annoying costs associated with selling their home themselves or waiting months on end for an offer on their property.
Other common investor transactions are when aging parents need to access the equity in their home to pay for assisted living but don’t have the capability or finances to pack up and move or to update the kitchen from the Harvest Gold and Avocado Green that was all the rage in the 1960’s or 70’s, or when there are title issues around an inherited property that require an attorney to get straightened out but the heirs don’t have the money or the knowledge to get it done.
At Texas Cash Investor we specialize in purchasing homes in any of these categories, whether they are retail-ready, rental grade on in need of a whole-house renovation.
Hoarder Homes and Houses in Serious Disrepair are Often Sold to Investors
Hoarder homes are also typically sold to investors who are willing to take on the task of cleaning out, sanitizing, and repairing the home. Often in these situations, the buyer and the seller do not really know what exactly they are dealing with because the clutter obscures potential problems, so the investor is partially guessing as to what he/she will encounter when the clutter is removed from the home.
When a home is in serious disrepair it is typically sold to an investor who has extensive experience in rehabbing and flipping homes. Often a seller will believe that a house needs to be demolished but an investor can see a way to save the structure and can therefore offer more to the seller than they are expecting to receive.
Texas Cash Investor has extensive experience in homes filled with clutter, to the extent that doorways and rooms are hidden, the house is littered with dead animals and human feces, piles of paper bags filled with trash so full that only narrow walkways remain in the house. We have dealt with hoarder homes of all types. We also have extensive rehabilitation and remodeling experience and often purchase flooded or burned houses, homes with extensive roof and foundation damage, even homes that need to be torn down. We have solutions for any physical distress or disrepair a property can experience.
Selling a Home to an Investor During a Divorce
Selling a house during a divorce can be difficult without help. It can take time and there may be disagreements on how or when to sell the property, what updates to do to the home, who to use as an agent, or a host of other potential conflicts. Selling to an investor can mitigate these problems and make it a quick and simple process.
People going through a divorce will often choose to sell their home to an investor because they know that the process will be relatively quick since they don’t need to deal with all of the details that are necessary when selling to a retail buyer who is using a mortgage. Investors will often do a cursory inspection and have enough knowledge regarding values and repair costs to make an offer without any further rigamarole. And since investors pay cash there are no lender requirements to hang the deal up. In fact, in many cases an investor can close in as little as 10 days, the divorcing couple can divvy up the proceeds and the property doesn’t have to be an unwanted chain tying the two together.
Texas Cash Investor provides an easy and quick solution to couples that are separating and need to divest themselves from real estate assets so they can each go their own way.
Children of Aging Parents Often Choose to Work with an Investor-Buyer
This is especially true in the case of adult children looking for investor-buyers to help with the repairs and updates of their parent’s home.
Some adult children may be willing to take on this responsibility, but others may find it difficult because they are not skilled in construction or other aspects related to real estate. This is where an investor-buyer could come in handy.
Often the children live in a different state and cannot handle the repairs and updates necessary to put the house on the market due to the distance. Not to mention that they have responsibilities to their own families at home and can’t take the time to travel and stay with their parents while the project is being done. Moreover, sometimes the parents have an urgent need for care and can’t wait for a whole-home remodel and for an agent to list the property and find a qualified buyer. Investors can take action now, buying the home as-is and even helping the family to hire movers, rent storage, find homes for pets and all the other little details that are so hard to take care of from across the country.
Texas Cash Investor has helped families from across the state (although we buy house in Houston TX and other areas in Texas, we have made a lot of purchases in these area in particular: Beaumont/Port Arthur/Vidor/Orange; Temple/Killeen/Waco;Houston/Galveston; Brazoria/Freeport/Angleton; and, Amarillo/Canyon/Pampa). We can arrange for moving and storage of personal property, we can work directly with an assisted living facility; we can pay cash quickly or pay more by making monthly payments to the seller…whichever better meets their needs. We can make arrangements for re-homing pets or deal with any other obstacle that is preventing an elderly loved one from getting the care they need.
Selling a House with Title Problems to an Investor
Title problems are common in the real estate market. It is quite common to find that many homes are not free and clear of liens, taxes, heirloom rights, or other types of title problems and this can cause a real estate transaction to fail. Some of the most common title problems that may occur when selling a home are the lack of documented ownership, mobile homes not attached to land, liens, unpaid taxes, mortgages that have not released the property from encumbrance and complicated heirship issues.
These can be very complex issues that have the potential to get in the way of selling a property. Many real estate investors are not sophisticated enough to understand the legal complexities involved in clearing a title problem and will often contract a house that they are unable to close on because they lack the knowledge and skills to get the deal across the finish line.
Texas Cash Investor is well-versed in complicated title issues and we have never met a title problem we were unable to fix. If other investors have left you hanging in a real estate transaction or have ghosted you after placing your house under contract, it is because they either offered more than the house is worth or because they have come across a title issue they lack the knowledge and experience to solve. At Texas Cash Investor, we close the deals other investors can’t.
Selling a House Inherited Without a Will
A will is an important way for someone to determine how their property and other assets will be distributed after they die. A person with a will leaves behind a legal document that will tell the court how their estate should be distributed after they die. And the court will appoint an executor to administer the distribution according to the will in a process known as “probate.”
Dying “intestate” is a term that refers to the situation of a person who has died and did not have a will. If he or she has died without leaving any descendants, the state’s laws of succession take effect and determine who the rightful owner of the property is according to specific heirship criteria. The process of transferring the property to the heirs can typically be done through an administrative legal filing. In Texas, for example, this is called an “Affidavit of Heirship.” This is a sworn statement with witnesses stating who the heirs of the decedent are. The effect of filing this document is the instant transfer of property ownership to the legal heirs without the need for probate proceedings.
While not absolutely necessary, a lawyer or title company who understands heirship laws in the state where the property exists if very beneficial. It is easy to file the affidavits incorrectly or incomplete and further “cloud the title” of the property, making it harder to sell rather than easier. But an attorney or title company alone is not enough, you also need a buyer to make the sale happen.
A real estate investor can come into play when an heir needs help putting the realty into her or his name so that a sale can happen or when there are multiple heirs and no will or executor. Experienced investors, like “Texas Cash Investor” have relationships with attorneys and title companies that can get the paperwork filed and title cleared so a sale can happen. An experienced investor can be your best resource in this situation because we often have more real-world experience in tricky title and heirship situations that even the attorneys and title companies do.
Having established legal heirship and ownership of the property, a sale to an investor would mean that instead of dividing up shares of ownership in the estate (everyone owning an equal share of the real estate and being equally responsible for the taxes, maintenance, insurance, etc.), the investor would buy it all and all heirs would receive their share in cash at market value based on how much they own of the real property. For instance, there may be 3 siblings who are each equal heirs and each would receive 1/3 of the proceeds from the sale of the property at closing.
Texas Cash Investor has sorted out heirship issues with heirs, deceased heirs’ children, distant relatives when there was no immediate family and even solved a title issue from a parent who died in 1948 leaving no will and having to rectify a broken chain of title from 73 years ago.
Selling a Home in Foreclosure to an Investor
Foreclosure can happen when an owner falls behind on their mortgage payments for more than three months in a row. Selling a foreclosed property to an investor is a good way to get out of foreclosure and take back control of your finances and your credit.
When someone buys your house in foreclosure, typically they will get the mortgage current and take over responsibility for making the payments that you were making to the bank or lender. They will then be responsible for paying the mortgage, taxes, and insurance for you and they take possession of the home.
At first glance, this might not make sense…why would you let someone take over both your home and your mortgage? Think about it this way: You owe $150,000.00 on your mortgage and are $10,000.00 behind on your mortgage payments – the bank is going to foreclose and you are a) going to lose the home; b) going to have a foreclosure on your record making buying another home nearly impossible; and c) you are still going to owe the difference between your mortgage payoff and what the house sells for at auction…so if it sells for $110,000.00 at auction, you would still owe $40,000.00 even though you lost your home.
Alternatively, you could negotiate with the lender to allow a “short-sale” which means the home is sold for a price that is short of what is owed on the loan. This is often presented as a solution to let the homeowner walk away from the problem but what they don’t usually tell you is that you can still be held responsible for the shortage at the discretion of the lender.
Now, going back to the investor’s solution…in the same scenario as above, the investor would buy the house from you “subject to the existing financing” which means that the mortgage on the house would stay in place in your name but the investor would own the home. The home would still be subject to foreclosure by the lender if the mortgage was not paid. However, the investor is going to pay the amount that the property is in arrears at closing and will take over responsibility for making timely mortgage payments to the lender as well as paying the taxes, insurance and maintenance on the home. This benefits the seller in several ways: a) the responsibility for making payment is taken on by the investor; b) the past due amount is paid to the lender immediately and therefore improves the seller’s credit standing; c) timely payments on the loan are made from the date of sale onward, creating a positive payment history for the seller’s credit record; d) prevents a foreclosure from being documented on the seller’s credit record and e) depending on the amount owed on the home and the repairs necessary to rent the home, the seller may actually receive a check from the seller at closing rather than owing money to the bank. Moreover, if the investor subsequently sells the property, the mortgage would be paid off by the title company on the sale of the property to a new party.
In making this kind of deal with an investor, it is important to know who you are dealing with and what the potential pitfalls may be and what your rights are if the investor fails to fulfill his/her obligation. First of all, the mortgage is still in your name so if the investor fails to make the mortgage payments it will negatively impact your credit and the house could potentially be foreclosed on if the investor allows the mortgage to go on unpaid. But to put this in perspective, an investor who paid to get your mortgage caught up and who made payments on the house would lose their entire investment if they allowed the home to be foreclosed on. No savvy investor will put money thousands of dollars into a property only to lose their investment.Moreover, if the investor lets the payments get behind, you as the mortgager have the right to foreclose on the investor and take your home back and resume making payments if he/she fails in the obligation of making timely mortgage payments. While this solution is often the very best solution available to a person in foreclosure but vetting your investor-buyer and knowing they are established and experienced will reduce any risk associated with selling your home in foreclosure subject to the existing financing.
Texas Cash Investor is very experienced with this solution and has never missed a payment or paid a mortgage payment late. If you are facing a foreclosure, please reach out to us to see if we can help save the home from the auction block and possibly put some additional money in your pocket.
Selling a Mobile Home to an Investor May Be Your Only Option
A mobile home not connected to any type of land is considered personal property and is titled similarly to a vehicle. And just like a vehicle, it goes down in value as each year passes.
If the mobile home has been legally attached to a piece of land and converted to real property, it is still a depreciating asset. While the value of the underlying land may increase over time, the value of the mobile home decreases sharply. Because of this, banks will not typically lend on mobile homes more than about 5 years old. A bank wants to lend on something that is going up in value or is at least stable because the likelihood that someone will just quit paying and let the property go into foreclosure increases greatly when the value of the asset is less than the outstanding mortgage.
This means you will need a cash buyer if your mobile home is more than 5 years old. And depending on where you live the availability of cash buyers may be very limited. Rural areas in particular can be very difficult environments to find a cash buyer for a mobile home
At Texas Cash Investor, we buy mobile homes on land in any condition or of any age. There are typically two types of offers we can make on a mobile home. The first is an all-cash offer…this is a quick and easy, no fuss transaction that lets you sell your mobile home immediately. The second, will result in you getting paid more money but it is not entirely an upfront payment. This offer would consist of a down payment and then a monthly note paid over a period of time between 7 and 30 years. The longer the term, the more we can offer. This puts control in the seller’s hands to choose what is most important: fast money or more money.
Selling a House to an Investor Can Be the Best Solution for Many Homeowners
Whether you are looking to sell a home that has title problems, heirship issues, is in serious disrepair or is in foreclosure, an investor-buyer like Texas Cash Investor may be your best solution. We can help with parents needing to downsize or move into assisted living. We buy homes that have been occupied by hoarders, houses that have been flooded or burned or homes that need to be sold to separate property for a divorce. There really is not a situation in which we are unable to help with the purchase of real estate. If you have one of these situations, or you just want a quick, hassle-free, cash sale, Texas Cash Investor can help.
Other investors are often a one-trick pony: a cash offer. Texas Cash Investor has creative solutions for every situation, whether that means a quick, cash offer; taking over a mortgage; paying more by making payments over time; buying a property and leasing it back to the seller so they do not have to move; a combination of these or a host of other creative solutions to any situation you have.
If you have a property and would like to sell without having to repair or update the home and without dealing with an agent, mortgage companies and all the other stresses of a traditional sale, please give Texas Cash Investor a call at (281) 214-6200. If you tell “sell my house fast Houston TX” or other areas of Texas then we can help.