At some point it will be time to sell your investment property, it may be a headache, your tenants are killing you and you need to get out. It could be approaching the end of its economic life as a tax advantage for you or you may even see some big profits if you sell now. Whatever the case here are 6 areas of concern when selling investment Real Estate.
1.Tenants – Good and bad can cause problems for a seller. Tenants like to talk whether or not they have any idea of what they are talking about. Tenants have killed deals and have misled buyers to wrong conclusions. Your tenants are afraid of change, they may not like you or your management company but they feel safe because they know you.
2.Property Managers – On site managers can get in the way especially if they are concerned about their future employment. Your off-site property management companies will be very helpful with the transition to a new owner. If you have been dealing with them honestly they may hope to follow you to your next project.
3.Maintenance Contracts – Have all contracts with your maintenance companies up to date, inspections complete and truthful answers to any deferred maintenance questions. Warranties, replacement and repairs files complete and up to date.
4.Code Enforcement – Problems can occur if you have made improvements to the property without obtaining the proper permits and completed necessary inspections. Additions, electrical upgrades, new baths, new kitchens, decks structural repairs or renovations all may need to be permitted. Going back after the fact is expensive and may result in fines.
5.Banking and Accounting – Prior years tax records, accounting records audited and unaudited, bank statements. The better records you have the easier it is to verify your expenses and prove cash flow. The easier it is for the buyer to confirm the price and get financing.
6.Realtors – Depending on your property you may need a commercial or a residential real estate agent. Don't get them mixed up. With multi family 6 units or more use a commercial agent, single family or 4 units or less use a residential agent. Commercial agents will charge 10% to 12% or more you are paying for their knowledge, expertise and contacts its' well worth the price.
Bill Carey offers insights to the buying and selling process of residential real estate for F*R*E*E information and reports see
http://www.BillCareyRealtor.com
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