The eviction moratorium has left many investors collecting little to no rent due to the guidelines set down by the CDC. But what do you do when your tenants aren’t paying rent? Regrettably, as the order drags on, many investment property owners can no longer afford to take the loss. Most property owners turn to the more traditional style of listing a property when they are getting ready to sell real estate, without any thought to other options. When already facing not collecting rent, considering all the steps to prep the property to make it market-ready can feel overwhelming financially. Let alone selling a house with an inherited tenant on the retail market. Should you find yourself in this position, we will explore how to sell your Dallas investment property when your tenants aren’t paying up.
Real Estate Agent
Attracting the average investor to a listing in the real estate market can be extremely difficult, if not nearly impossible if you are trying to sell your Dallas investment property when your tenants aren’t paying. Many Investors prefer turnkey rentals, but a home with a tenant that is not paying rent is not turnkey. The fact that your tenants protected under the order is not something that will go unnoticed, so be prepared to be completely forthright regarding your tenant’s current status, regarding the order. An issue with listings are the inevitable showings, which means arrangements with tenants to show your investment property. Be prepared to cover the expenses for photography, marketing as well as repairs and updating the property on both the interior and exterior. Added to this are commissions and fees associated with real estate agents.
Short Sale Foreclosure
This might another option for you? A short sale is a transaction in which if the homeowner is upside down, the bank will let the homeowner sell the home for less than the loan balance. The borrower has a REALTOR® sell the home at or above the minimum price the bank has set. This saves the bank the expense of a foreclosure suit and the possible long-term cost of owning the asset.
FSBO
The other option to list your Dallas investment property when your tenants aren’t paying is for sale by owner or FSBO. Buyer will be seeking is the monthly income realized from the investment. You will want to be fully prepared to share any arrangements you have already made with your tenants for partial payments, under the guidelines of the CDC order. By handling showings yourself, you also do not have to worry about tenants responding to questions that they really should not answer to a buyer’s agent or their clients. This also eliminates your dealing with them asking you questions during showings in front of your tenants as well. One issue is having tenants that are home full-time because they are usually not working at all in many cases. This causes difficulty for tenants keeping a unit spotless, just in case there is a showing.
Direct Buyer
Ready for a faster and easy solution? Direct buyers typically close much faster than traditional transactions and purchase homes just as they are (we can close in as little as 7 days). This can mean thousands in savings to you with no updates required and no more repair bills to worry about! This also includes buying the property with full awareness of your tenants current standing under the order. Why not sell your Dallas investment property to a direct buyer when your tenants are not paying up? Selling to a professional home buyer like PREAM is extremely straight forward. They will layout every step of the process and usually have shortened, very clear contracts that are simple as-is purchase agreements. While offers are usually below market, this is for good reason! The buyer is taking on a tremendous risk by purchasing your house as-is, for your home may be more damaged than you realize! This lessens your exposure to legal risks, found in traditional real estate sales.
Sell your Dallas investment property to PREAM Home Buyers when your tenants are not paying. Sellers can expect quick, simple, stress-free transactions from PREAM Home Buyers. We have many investors looking for turnkey rentals, like yours. Give us a call or send us a message. We will to discuss all of your option, even if the best option is NOT us. Call us and be DONE! To receive your personalized, no-obligation offer. Call (469) 840-4449 today to learn more!
