Reasons why Real Estate Investors Should Consider Selling to Zvestors

Reasons why Real Estate Investors Should Consider Selling to Zvestors

Reasons why Real Estate Investors Should Consider Selling to Zvestors

There are two main types of real estate investors. Firstly, there are “fix-and-flip” investors who purchase undervalued properties intending to renovate and upgrade the properties before selling them for a profit. Secondly, there are “buy-and-hold” investors who purchase properties for long-term cash flow from rental income and also for appreciation. This article will go through reasons why these investors should consider selling their properties through a company like Zvestors.

Fix-and-Flip Investors

There are two keys to success as a fix-and-flip real estate investor. The first key is that the investor purchases the property at the right price and accurately estimates the repair and renovation costs and the holding costs. The second key to success is speed. These aspects are closely related. Even the most experienced fix-and-flip investors can get the numbers wrong. Real estate markets can change quickly, and every property hides special surprises. The best plans can go wrong and take longer than expected to implement. The kitchen cabinets that “just needed to be refaced” might end up as a gut-renovation of the kitchen. Unexpected foundation or structural issues. A leaky roof. Previous renovations that weren’t properly permitted and which need to be remedied.

It is not only the additional costs that are a problem, but also the additional time that the flip takes will increase the holding costs of the property and mean additional interest payments on the financing that weren’t factored in.

An experienced fix-and-flip investor knows to factor in a margin of error to accommodate unexpected expenses or delays on a project. But this is no guarantee, and the investor may need to consider alternative exit strategies on a property if things take an unexpected turn.

Buy-and-Hold Investors

Buy-and-hold investors are long-term investors. They are purchasing a property with the expectation that they will rent it out over the years. Depending on the investment scenario, over the investment period, the buy-and-hold investor calculates that the rental income will cover:

  • Mortgage payments on the property and thereby build equity in the property over time;
  • Running costs on the property, including property management fees, taxes, HOA fees, and utilities, as applicable;
  • Repair and maintenance costs of the property over time; and
  • That there is an expectation that the property value will appreciate over time, potentially enabling a cash-out-refinance of the property to enable investments in further rental properties.

Again, not every investment goes according to plan. Running costs of the property can increase over time, causing the property to be no longer profitable. An HOA could charge a large special assessment, property taxes can be reassessed, and unexpected repairs or renovations can come up. On the income side, there can be vacancies or non-paying tenants that take months to evict.

The other topic to address with buy-and-hold investors is that investment objectives can change. Real estate markets can change and cause property in a particular neighborhood to no longer meet your investment objectives. This can happen if a particular neighborhood starts to deteriorate but also if a neighborhood gentrifies. In the former case, you may no longer be able to rent the property for the same amount as previously resulting in declining revenue. In the latter case, you may have the cost of significantly improving your property to meet the rising standards of the neighborhood and prospective tenants.

Zvestors Helps Investors Dealing with the Unexpected

For both fix-and-flip and buy-and-hold investors, it is the unexpected things that can derail your business. It is important to emphasize – there is nothing wrong with realizing that a fast exit from an investment property is necessary to maintain your profitability so that you can move on to other, better investment opportunities.

With Zvestors you can sell your house fast, sell your house for cash and sell your house as-is without further renovations required.

Selling through a real estate agent will cost you thousands in commission, and a typical sale to a buyer who intends to live in the home can be a long and drawn-out process with offers that are contingent on home inspections and costly repairs being done.

A company like Zvestors will make you an offer on your property in as-is condition. You don’t need to pay commission or for costly repairs, and the sale will close quickly with cash in your pocket.

Don’t let the unexpected slow you down. Contact us for a free consultation and an instant quote.