Typically, we do not list properties on the MLS (Multiple Listing Service). Instead, our approach involves direct purchasing of properties, providing you with a streamlined and efficient selling process. By bypassing the MLS, we expedite the sale and offer you a hassle-free experience.
However, we have a team of real estate agents we work with closely on deals such as Novation adding to our arsenal of tools to give you the best option for you to sell your home.
A cash offer in real estate refers to a buyer offering to purchase a property without the need for financing from a bank or mortgage lender. Here’s how it typically works:
Yes, we buy properties in AS-IS condition. Whether your property needs minor repairs or significant renovations, we’re interested in purchasing it. By buying properties in their current condition, we aim to streamline the selling process for you, saving you time and hassle. You won’t have to worry about making costly repairs or renovations before selling. Our goal is to make the transaction as convenient and straightforward as possible for you.
When determining a cash offer for your property, several factors are considered. These include the current market value of your property, its condition, location, any necessary repairs or renovations, and comparable sales in the area. Typically, we’ll conduct a thorough assessment of your property to understand its value accurately.
Once we have evaluated these factors, we’ll present you with a fair cash offer that reflects the market value of your property and takes into account any necessary adjustments. Our goal is to provide you with a competitive offer that aligns with your expectations and ensures a smooth and efficient transaction.
We determine the cash offer by analyzing comparable (comps) in the area, known as the After Repair Value (ARV). We utilize platforms such as Redfin and Propwire to identify the most suitable comps, ensuring accuracy and competitiveness in our offer. Our goal is to ensure transparency and convenience throughout the process, while guaranteeing you receive a fair and competitive offer for your property.
No, you won’t incur any commission or closing costs with us. We cover the closing expenses. This sets us apart from realtors, who typically charge 6% or more in commission fees, and selling through them could take six months or longer. Our priority is to ensure your selling experience is seamless and stress-free. With us, you can proceed confidently, knowing there are no hidden fees.
A title company, also known as a title insurance company, plays a crucial role in real estate transactions by ensuring that the property being transferred has a clear title. Here’s an explanation of what a title company does in real estate. (more times than not an attorney is involved in the transaction and title search).
1. **Title Search**: One of the primary functions of a title company is to conduct a thorough title search on the property being bought or sold. This involves examining public records to trace the history of ownership and identify any outstanding liens, mortgages, or other encumbrances that could affect the property’s title.
2. **Title Insurance**: After completing the title search, the title company issues a title insurance policy to protect the buyer and lender against any defects in the title that may arise after the transaction is complete. Title insurance provides coverage for losses resulting from title issues such as undiscovered liens, errors in public records, or fraud.
3. **Escrow Services**: In many real estate transactions, the title company also acts as the escrow agent. This involves holding funds and important documents, such as the purchase agreement and deed, in escrow until all conditions of the sale are met. Once the transaction is finalized, the title company disburses the funds and records the deed with the appropriate government agency.
4. **Closing Services**: The title company typically coordinates the closing process, which involves bringing together all parties involved in the transaction to sign the necessary paperwork and finalize the sale. This may include the buyer, seller, real estate agents, lenders, and any other relevant parties. The title company ensures that all documents are properly executed and recorded according to local laws and regulations.
5. **Title Clearance**: If the title search reveals any issues with the property’s title, such as outstanding liens or judgments, the title company works to resolve these issues before the transaction can proceed. This may involve working with the seller, lenders, or other parties to clear up any title defects.
Overall, a title company plays a vital role in real estate transactions by providing title insurance, conducting title searches, handling escrow services, and ensuring that the transfer of property ownership is conducted smoothly and legally. Working with a reputable title company can help protect buyers and lenders from potential title issues and provide peace of mind throughout the transaction process.
Creative financing in real estate refers to alternative methods of funding a property purchase or investment beyond traditional bank loans. Here’s how it works:
Creative financing strategies can offer alternatives to conventional loans and open up opportunities for both buyers and sellers in the real estate market.
Yes, creative financing is legal as long as it adheres to all relevant laws and regulations governing financial transactions. Creative financing refers to non-traditional methods of financing real estate deals, such as seller financing, lease options, subject-to transactions and much more.
Creative financing can offer several benefits to sellers in the real estate market:
Overall, creative financing can empower sellers to take control of the selling process, attract more buyers, and achieve their financial goals more effectively.
Novation in real estate refers to the process by which one party is replaced with another in a contractual agreement, effectively transferring both the rights and obligations of the original party to the new party. It’s commonly used in situations where a buyer wishes to take over the obligations of an existing contract, such as a lease or mortgage, from the original buyer.
Here’s how novation works in real estate:
Novation can be a complex legal process, and it’s essential to consult with legal professionals experienced in real estate transactions to ensure that all parties’ rights and obligations are properly addressed and documented. Additionally, novation may have implications for taxes, liabilities, and other legal considerations, so thorough due diligence is necessary before proceeding with the transfer.
Balloon payments in real estate typically involve a large, lump-sum payment that is due at the end of a specified period, often at the conclusion of a shorter-term loan. Here’s how they generally work:
Agreement: The borrower and lender agree on the terms of the loan, including the principal amount, interest rate, and repayment schedule. With a balloon payment, the repayment schedule usually spans a shorter period than the actual amortization period of the loan.
Regular Payments: During the term of the loan, the borrower makes regular payments, typically smaller ones, consisting of both principal and interest, based on the agreed-upon schedule.
Balloon Payment Due: At the end of the loan term, the borrower is required to make a large, one-time payment to satisfy the remaining balance of the loan. This balloon payment is usually significantly larger than the regular payments made throughout the term.
Options at Maturity: When the balloon payment becomes due, the borrower typically has several options:
Benefits:
The benefits of a balloon payment include:
Lower Monthly Payments: Balloon payments can reduce monthly payment amounts, making properties more affordable in the short term.
Improved Cash Flow: Lower monthly payments can free up cash flow for buyers, allowing them to invest in other ventures or cover additional expenses.
Flexibility for Buyers: Balloon payments provide flexibility for buyers who may plan to refinance or sell the property before the balloon payment is due.
Higher Overall Profit for Sellers: Sellers benefit from receiving a larger lump sum payment at the end of the loan term, potentially resulting in higher overall profit compared to traditional loan structures.
Faster Payoff: Balloon payments often lead to a shorter loan term, allowing buyers to pay off the property more quickly and potentially save on interest costs.
Attractive Terms for Investors: Balloon payments may attract investors seeking short-term financing options with lower initial payments and the potential for higher returns in the future.
Overall, balloon payments offer advantages for both buyers and sellers, providing flexibility, improved cash flow, and potential financial gains.
If the buyer (whether it’s us or our partners) misses three payments in a row, ownership automatically reverts back to the seller (you) without the need for any legal procedures. Throughout the entire life of the loan until it is fully paid, there will always be a third-party servicing company facilitating it. If we miss payments, ownership will revert back to you via the third-party company.
“SubTo” is a commonly used abbreviation in real estate under the umbrella of creative financing that stands for “subject to existing financing.” In a “subject to” transaction, the buyer purchases a property, taking title to it, but the existing mortgage on the property remains in the seller’s name.
Here’s how a “subject to” transaction typically works:
Agreement: The buyer and seller agree to the terms of the sale, including the purchase price and any other relevant terms.
Title Transfer: The buyer takes legal title to the property through a standard purchase and sale agreement.
Existing Mortgage: Instead of paying off the seller’s existing mortgage, the buyer agrees to make payments directly to the lender on the seller’s behalf. The seller’s mortgage remains in place, and the buyer assumes responsibility for making the mortgage payments.
Ownership: While the buyer takes legal ownership of the property, the seller’s name remains on the mortgage. When the buyer makes payment on the mortgage payments, ultimately building the sellers credit even higher.
Benefits for Buyer and Seller: “Subject to” transactions can benefit both buyers and sellers. Buyers may be able to acquire properties with existing financing in place, avoiding the need for a new mortgage or down payment. Sellers may be able to sell their properties more quickly and without the need for costly repairs or renovations.
