REI Wealth Monthly Issue 14 | Page 62

CREATIVE REAL ESTATE STRATEGIES FOR SELLING PROPERTIES AT FULL PRICE LEX LEVINRAD This is an example of putting yourself in your buyer’s shoes. Because no appraisal is required you could sell the house for any amount that you and the buyer agree to, as long as they can afford the payment and as long as the payment is reasonable compared to what that same house would rent for. The determining factor for the buyer is their monthly payment not the purchase price. However, your sales price should still be reasonable relative to comparable sales in the neighborhood. I suggest you print out three of the highest recently sold homes and save them for your records to justify your sales price. If you are going to do a wraparound mortgage or seller financing, it is critical that you utilize an attorney and do not try to do this by yourself. Using an attorney also has the added benefit of being able to establish an escrow account for the buyer, where the buyer’s payment includes their property taxes and insurance. This enables the buyer to send the payments directly to the attorney, who in turn, will send your portion to you and keep the remainder in escrow for taxes and insurance. Having the buyer know that you have an attorney representing you will be an added benefit. One final thing to note is that there are currently new regulations about seller financing that might require sellers to be licensed as a mortgage broker, in order to offer seller financing. Some exemptions apply if you are the owner of the house, but the laws are constantly changing, so please consult with your attorney about current Federal and State Laws before considering any creative strategies like seller financing or lease options. Lex Levinrad Lex Levinrad is a South Florida real estate investor that has been wholesaling, buying, fixing and flipping homes for the past 10 years. He has written 7 books about investing in real estate, and is a nationally renowned real estate speaker and coach. Lex’s Website: http://www.lexlevinrad.com