Owning a house you don’t want in South Jersey can hold you back in many ways. Learn how in our latest post!

Many people hold on to an unwanted property, not realizing what it is really costing them. Between the financial aspect, the frustrations, and the missed opportunity costs, owning the wrong home is likely setting you back in ways you haven’t even thought about. Below, we discuss 5 common misconceptions people have about owning the wrong real estate in South Jersey.

You Won’t Be Able To Find A Buyer

Many people who feel stuck or burdened by an unwanted house, hold on to it for longer than they should because they don’t think anyone else will want to buy it. However, there are typically investors and those looking for a fixer-upper who are looking for a property just like yours. As they say, one mans trash is another man’s treasure. Don’t assume you won’t get a great price for the property until you put yourself out there. You can start with a free, no-obligation offer from Tactical Investing Inc.!

You Won’t Be Able To Get A Great Price

If you aren’t a fan of the house yourself, you may believe others won’t be either. You may have convinced yourself that just because the house isn’t the prettiest on the block, that you won’t be able to get a good price. This, however, is not the case. When you find the right buyer for your home, they won’t try to nickel and dime you. Professional home buyers such as Tactical Investing Inc. will ALWAYS pay you a fair price no matter the condition of the property or the situation you are in.

One Day They’ll Fix It

So many people hold on to a property with the intent to fix it up, however, in the end, they never do. Instead, the basement will sit half-finished for another 5 years, the kitchen will remain dark and cramped, and the needed repairs will go undone. If you are really going to fix it, you would have already. If you are solely holding onto a property for what it maybe one day, you might want to find a house that is already what you are looking for in a home.

The Value Will Go Up

Sure, over time property values tend to rise, however, this isn’t always the case. When the markets are unstable, homeowners must be aware that there is potential for their property value to drop dramatically at any time. There isn’t anything worse than owning the wrong property, hoping the value will rise, only to find yourself with a property that is worth less than when you bought it. If you feel like you are stuck with the wrong house, the time to sell it is now!

They’ll Get Used To It

While you might get used to some of the problems, they will most likely just continue to drive you crazy. Frankly, that’s no way to live. Worrying about your property on a regular basis, paying for repairs, and dealing with problem after problem isn’t fun for anybody. While you might get used to some things, the question is, do you really want to? You don’t have to settle. You can liquidate your unwanted property, turn it into cash, and move-on to a house that makes more sense for your current situation.

If you own a house you aren’t completely satisfied with, don’t trick yourself into thinking it is what you should settle for. There is no rule that says you need to own the house forever.

Tired of owning a house in South Jersey? We are here to help! Reach out to us today! (215) 882-9828

Real estate investors across the country are turning to lease options in order to sell properties. It can bring in more cash in the long run and will give you the power and flexibility to focus on other investments in the meantime. In our latest post, we explain why real estate investor should consider lease options in South Jersey!

As a real estate investor, you may have a property you want to sell but haven’t been able to unload at the price you want. It happens all the time but you don’t need to take a loss. By utilizing a lease option, you will be able to get the price you want, bring in extra income, without any risk. Keep reading to learn more about how lease options can benefit you!

Sell For The Price You Want

When you list a property in South Jersey, there are no guarantees that you will get your asking price. You may find your property sits on the MLS stagnantly, forcing you to drop the price. By utilizing a rent to own, or lease agreement with a potential buyer, you will be able to receive the price you want. You will set your sale price in the beginning, letting the tenant know what they should expect. While they might try to negotiate the price, they don’t have much bargaining power, so what you ask for, you will likely get. The only thing to be aware of is any major market fluctuations while the agreement is in place. Even if prices rise dramatically, you will still need to sell them the home at the originally agreed upon price. On the flip side, if the market drops, you will still be able to get today’s price for it.

Generate More Income

Each month the tenant will pay you a higher than average price to rent the home. In some agreements, a percentage of this amount will go towards the down payment. In other cases, it does not. This all depends on the terms of your agreement. Either way, you will be generating more monthly income from the property than if you were to simply rent it out. You will also guarantee yourself a tenant over the lease term. They will have a sincere interest in the property, not wanting to break the lease for any reason.

Other Benefits

With this greater interest in the property, you will find that your tenants will take extremely good care of the home. They will treat it as if it were there own, making the repairs and ensuring all maintenance is being taken care of. Some tenants will even want to complete upgrades or special projects to the home while living there. Of course, this is subject to your approval, but it can’t hurt having them add value to the home in case of a default. You can rest assured that they will not cause damage to the home or allow it to become damaged, run-down or dirty. They will have much more pride in the home than just your average tenant.

No Risk

The tenant is going to do everything possible to make sure payments are received on time. If they default on their payments, the deal is off and you wind up keeping the additional amount they paid in rent each month. If this does happen, you can then opt to relist the property, with a whole new pool of prospective buyers. If it still isn’t the right time, you can find another candidate for a rent to own agreement. Either way, you will come out ahead.

Learn more about how lease options can benefit real estate investors in South Jersey! Get in touch with Tactical Investing Inc. today! (215) 882-9828

If you want to invest in rental real estate in South Jersey then one of the first things you’ll need to do is determine the value of the property. After all, how else will you know if it’s the right investment for you? In this blog post, we’ll share with you the 3 ways to value a rental property in South Jersey so you can know right away if you should invest in a property…

When you’re looking at rental real estate to decide whether to invest in it or not, the asking price is just one way to value the property. That’s the price the seller values the property at. Your job, as an investor is to apply some of these 3 ways to value a rental property in South Jersey and compare it to the asking price to figure out if it makes sense to you.

3 Ways To Value A Rental Property In South Jersey

#1. Cash Flow Potential

What is the potential income you’ll make each and every month from this rental property? Consider both gross and net so you can more easily calculate whether you’ll be cash flow positive right away. Ideally you’ll want to be cash flow positive (although there might be a strategic reason to temporarily not be cash flow positive).

Have you seen our list of cash flowing rental properties? Click here and fill out the form to check them out.

#2. After Repair Value

When working with a distressed seller, you’ll want to weigh their asking price against the value of the house after all repairs are made. As an example, a seller might be asking $75,000 for a house and you know the after repair value (ARV) would be $100,000. So you need to figure out how much it will cost you to make repairs. If it will cost you $25,000 to make repairs then there’s no profit for you, you so might need to counter-offer to a lower price.

#3. Value To Tenant

This is a surprising and often overlooked way to value your property – what is the value of the property to a tenant? If you buy a low-priced rental property but then learn that it’s far away from anywhere that a tenant wants to live, the property might not be a good investment. So look at the location of the property in proximity to work, shopping, etc., to help you determine whether a tenant will want to stay in your property and how much they’ll pay.

Summary

If all this seems complicated to you, here’s the great news! You can actually skip all the calculations and estimates and just talk to us. We have rental properties with a lot of these numbers crunches already… plus many of them are already cleaned up, fixed up, and ready to rent (some are even rented).

We believe there isn’t a faster way to invest in real estate in South Jersey.

Want to see what investment properties we have available? Click here now and fill out the form, or call our office at (215) 882-9828.

There are many benefits of owner financing for homeowners in South Jersey! Learn more about the perks of using a rent to own contract to sell your house in our latest post!

Rent to own contracts are not standard boilerplate agreements. There are many aspects of the deal that can be modified to better suit a buyer or a seller. The terms of the lease, down payment, and responsibilities of both the buyer and seller can all vary from contract to contract. When the agreement is structured correctly, a home seller has the potential to come out ahead when all is said and done.

Cash Upfront

Just because you opt to use owner-financing, doesn’t mean your buyer will be able to avoid a down payment. When a seller offers financing for a property, even if it is short-term in a rent to own situation, they will still want to collect a down payment up front to secure the deal and to protect the seller from any loss. This upfront cash is often referred to as the option fee, which gives the buyer the option to buy at the end of the lease term. This fee can be anywhere from 2-7% of the final purchase price, however, a smart investor will keep this number on the low side to ensure they aren’t inadvertently pushing away any potential buyers by asking for an option fee that isn’t affordable.

Guaranteed Income

When you use owner financing or rent to own agreement to sell your house you will help ensure that you are bringing in an income each month. Your buyer or tenant isn’t going to risk defaulting on their agreement, so you can almost guarantee your money will be received on time every month. Having extra income can mean huge changes for you and your family. It can be like having a second job, without having to do all of the extra work. Many landlords are desperate to find a tenant. When owner financing comes into play tenants will line up at the chance to buy a home outright.

A Larger Pool Of Buyers

Offering owner financing to help sell your house in the South Jersey area will bring in a whole new pool of buyers. People who aren’t able to qualify or afford a down payment on a traditional mortgage will be able to come to you. Of course, you will need to run background and credit checks so you don’t end up in an agreement with the wrong person. But by offering owner financing for your property in South Jersey, you will be able to find many more potential buyers for your house. You will also be able to help someone who has a dream of homeownership, but who isn’t quite ready to do it all on their own.

Get Your Asking Price

Buyers are usually willing to pay your asking price in exchange for the opportunity to purchase your home. Your price should be reasonable and in-line with what other properties are selling for in the area. You may have to wait a year or two for the house to officially close. If you don’t mind collecting a rent payment, instead of the total profit from the home right away, you’ll likely be able to collect your asking price, without having to lose any money on the sale. You will have the upper hand in negotiations as your buyers aren’t going to want to have their offer be rejected.

A Fast Sale

By opening the door to new buyers, you’ll likely encounter many people who will jump at the chance to buy. Typically, you will be able to find a competent buyer right away. A traditional sale could have you waiting for months until a suitable buyer is found. By signing a rent to own agreement right away with a potential buyer, will immediately limit your liability and will help you end a good amount of ownership costs that you had previously been facing.

Freedom From Expenses

Once you have a tenant or prospective buyer in place, typically repairs and maintenance expenses will fall on their shoulders. That’s not to say you are off the hook for all costs, but you will be able to alleviate the majority of the routine repairs and maintenance costs homeowners often face. By eliminating these expenses from your budget each month you will be able to save up even more money toward the purchase of a new South Jersey investment property.

There is nothing that says you need to hold onto a house forever. The traditional methods of selling don’t always attract the right buyers. Offering owner financing on the sale of your property can quickly tun=rn the tables, helping you find a buyer almost immediately.

Learn more about the perks of owner financing for home sellers in South Jersey! We’ll answer all of your questions, contact us today! (215) 882-9828

Are you a landowner in South Jersey? Don’t let it just sit there! In our latest post, we offer 4 ways to add value to your land in South Jersey!

Whether you are interested in selling land, holding onto land you already own or looking to buy land in South Jersey, it can never hurt to increase the property’s value. While it may not be as obvious as improving a single-family home, there are things you can do to increase the value of your land in South Jersey. Below, we offer a few of our suggestions to make your land more than just another piece of dirt.

Clear It

Land can often come with old foundations, dilapidated structures, and debris that has gathered over time. It can also have an excessive amount of shrubbery, trees, and roots that will interfere with the development of the land. You don’t necessarily have to bring the bulldozer in for minor growth, but you do want it to be easy for potential buyers to be able to develop the land if they so choose. By clearing the land you will improve the aesthetics and make it easier for potential buyers to be able to envision what they will be able to do with the property. If you are actively selling your land, be sure to mark the boundaries so people know exactly what they are getting.

Develop It

If it makes sense to develop the land yourself without breaking the bank, it is an option that should seriously be considered. Make sure you have an accurate idea of what developing the land will cost you so you don’t get in over your head. Once the land is developed, you will be able to sell at a great profit or you can choose to rent out the property yourself. The beauty is, that you will have the option and ability to make the decision that will be most profitable for you. Another option is to have utilities put on the property if they aren’t there already. Simply doing this without actually building on the land will greatly improve the value of your raw land. Just make sure the costs to do so make sense.

Provide A Clear Vision

When presenting your land to potential buyers, don’t forget to consider the perceived value. Consider what can be done with the property at its highest and best use. Maybe a three-bedroom rental makes the most sense, or maybe a duplex. Run the financials for the development costs as well as the potential profits. Having these numbers readily available will give investors an easy way to see what the property is capable of.

Create Income

Even if you are ready to sell your land in South Jersey, it doesn’t mean you can’t let it generate income for you in the meantime. Leasing the land to a business owner for parking, a neighbor for their toys, or to a farmer to house their cows are all examples of ways to generate income from an empty piece of land. Plus, when your land is an income producing asset, you will automatically increase the value f the land to potential investors. A piece of land with little overhead, yet still generates income is a dream come true for many investors looking to buy land in South Jersey.

If you are a landowner or a potential landowner, knowing how to add the most value to your property is important. There will likely be a time you choose to sell if you don’t plan on developing, and you’ll want to know how to get the best price for land in South Jersey.

Let us help you add value to your land in South Jersey! Contact us today for more information! (215) 882-9828

Real estate investors and private sellers are turning to lease options in order to sell property they no longer want. It can be a practical, efficient and lucrative way to sell. Learn more about how it works in our latest post! 

Do you feel stuck or burdened by a home you want to sell? Have you tried listing it without any reasonable offers coming in? With a lease option, you can sell the house for the price you want, while making an extra income until the house closes. Keep reading to learn more about how to set it up, as well as the pros and cons it can offer you!

What Is It?

A lease to own agreement will give your tenant a way to lease your house with the option to buy at the end of the lease term. It is typically a win-win situation that will benefit both the buyer and seller. It isn’t always the first thing property owners think of when deciding to sell, but as you will see below, there are a number of benefits to consider.

What Are The Benefits?

Guaranteed Tenants

It is highly unlikely that your tenants will want to break the lease. They have a sincere interest in the house and will be paying a higher than average rent plus a deposit they will lose if they decide to leave the property. If they default on the lease, the agreement is off and they are out the extra money they have spent.

Higher Than Average Rent Payments

In some cases, a portion of the monthly rent payments will go toward the down payment on the house. In other cases, the higher than average rent is pure profit. The inflated price is the cost of letting the tenant postpone the purchase by allowing them to lease.

Sell For The Price You Want

Seeing as the tenant is more eager to buy, you likely won’t have a problem with them agreeing to pay the price you want for the home. As long as it appraised at the price you want, your tenant will pay. If you list the house on the MLS, you won’t have any guarantees of getting the price you are after for the property. You may even have to lower the price if it isn’t selling right away.

Tenant Pride

Seeing as your tenant will have a much larger interest in the house, they will do more to take care of it than the average renter. They treat the house as if it were their own, going out of their way to keep things nice.

What Are The Drawbacks?

Locked In Price

The price is negotiated form the beginning, so if your home value jumps up 20% during the agreement, you will still have to sell for the pre-negotiated price.

You Won’t See Your Cash Right Away

You should only do a rent to own agreement if you do not need the cash from the house right away. While you will receive a deposit and higher rent payments, the balance owed to you won’t be paid for a couple of years.

How Do I Set It Up?

Setting up a lease to own agreement is similar to setting up a rental agreement but with an option to buy at the end of the lease term. As with any real estate agreement, the terms of the deal should be made very clear to both parties. Both the tenant and the owner need to know what their roles and responsibilities are in relation to the home. For example, in most cases, the tenant will be responsible for the repairs, maintenance and even the property taxes on the home during the duration of the lease period. Working with a professional such as Tactical Investing Inc. can help you to ensure the agreement is handled correctly.

Learn more about using a lease option to sell your house in South Jersey! Get in touch with us today!

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