What are the benefits of an investor puchasing a property?
If you’re looking to sell a property (especially for cash flow or debt reasons), the best people to sell to are investors. They are often ready with cash or a great credit rating and previously known to the bank for being a good investor and trusted when it comes to making a deal and signing the dotted line.
Investors are often cash buyers because it makes the sale far easier for everybody involved in terms of time and the extra costs associated with mortgage applications. Cash buyers are able to close the sale at speed, saving the previous home owner much needed money and generally, releasing them from any further financial obligation to the lender. Selling to an investor is far better than going through a foreclosure with the bank and has much less damage on the sellers credit rating. This in turn enables the former homeowner to move on which may not have been possible previously, especially in cases where they may have owed more to the lender than the current market value of the house.
Lenders have been known to take weeks to approve short sales which is no use to the home owner in desperate need but Kristine Zelazo is a pro a getting a sale closed quickly and the previous owner released of their financial obligation to the lender. Part of this is because, in addition to specializing in short sales and as a realter, she is also a cash buyer.
Cash buyers make the short sale process much easier because they don’t need to apply to the bank for a mortgage so there is no waiting time for approval, and no waiting time therefore for the seller. The lack of mortgage application also means that there isn’t any room for things to go wrong, everything can be carried out in one swift transaction.
Lenders usually prefer to opt for short sale than a foreclosure because they minimize their own loss of money and time so they’ll often offer a discount to the buyer. All of the above mean a cash sale is a quick sale and Kristine often closes deals in a matter of days.
There are also some great financial incentives offered by banks available to home owners who opt for a short sale, so it’s well worth checking these out.