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7-STEP SELLING PROCESS - Coggle Diagram
OPTION 1: FSBO SELLING
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CONS
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You have to qualify buyers, need a good lender and title company to help.
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Even though historically, 85% of all FSBOs do not sell, there is still a possibility it will work.
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OPTION 6: LAND CONTRACT
A Land Contract is similar to "Subject To," but instead of us taking the property, we usually sell it to a third party.
The terms, price and payments are all dictated by you, the seller.
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CONS
When you sell this way, your name stays on the mortgage and you have to continue to make your payments.
If the buyer defaults, you might have to go to court to get it back.
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you can sell it again to a new buyer - usually for more than you sold it previously - and still you won't have to do repairs.
ANALYSIS
You can charge more than your monthly payment (on your current mortgage) and create some positive cash flow.
This is the way that most high ticket property (like real estate) was sold up to about a hundred years ago
Selling on a land contract will make it possible for us to sell it quickly with our online marketing techniques - usually within 30 days or less.
OPTION 7: LEASE OPTION
You lease your house to a tenant and give them an option to buy as a predetermined price within a specific time period.
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They have the right to exercise the option to buy anytime within the option period for the specific price you set.
PROS
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If the buyer DOES exercise the option, you get full market value.
CONS
You will get full market rent, but you will not get MORE than market rent.
It's possible the tenants will default, but we screen them, make sure they are employed and have an income sufficient to make their payments.
If they default, you must evict them like any tenant.
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You don't get a deposit on the property (this is not done with lease options), this makes some sellers uncomfortable.
ANALYSIS
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We get your "OK" and ask you to you sign a one page lease option memo to make it legal for us to do this - it doesn't lock you in to anything, you can cancel anytime
The sooner we get your go ahead, the sooner we can place a buyer (upon your approval), into your property.
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