Do you need to sell your house, investment property or apartment in the Pittsburgh area? We Buy Houses in the Pittsburgh Area.
AS IS CONDITION – Every home we purchase is in “AS IS” condition. We purchase homes in any condition ranging from move in condition to homes that need of complete rehabs.
WE DO FAST CLOSINGS – If you need to sell quickly you came to the right place. In most cases, you tell us when you need to close and we will try to work with you schedule or time frame.
SELL YOUR HOUSE FAST FOR CASH – Contact us today at 412-276-6974 for more details. We will set up a time to look at your property, usually within 24 to 48 hours.
Are there any local investors groups in Pittsburgh?
ACRE of Pittsburgh is local investment group in the Pittsburgh area. They are a great resource for investors and landlords. They meet the 1st Tuesday if each month. Check out their web site at www.acrepgh.org
Adjust to the Market
It seems like everything that used to work in today’s market suddenly won’t. Nice houses don’t sell. People with good credit can’t get loans. What are we to do? You need to realize that the only constant in this business is change. The real estate business is very cyclical. We go from periods of boom to bust just like any business cycle. The key is it never happens in exactly the same way twice. The best investors will try to take advantage of this by fading the crowd and anticipating where the market will go. I know that sounds to easy, but this credit crisis is providing one of the best buying opportunities I have seen in my life.
It is not necessary to only look for a junker to get a good deal. Many times nice houses in good condition can be bought for a fraction of their value. Here are a few I came across this year. A $200,000 four unit building needing no work but with only one tenant went to auction. There were only three bidders and it sold for only $37,000! A seller had an appraisal of $77,000 on a single-family ranch home in a decent neighborhood needing no work. He had three buyers fail to get a first mortgage. The house was sold to a cash investor for $34,000. The $34,000 came from a private lender’s IRA. The key to theses deals were the investor’s ability to raise cash using owner/private financing, not banks. Since we are in the middle of a credit crisis you need to arrange private lines of credit with individuals, partners and family. Most people want to use bank lines of credit and mortgages rather than individuals. As the lending crisis continues bank lines may be called due or termed out at unreasonable payments. Don’t believe it, read the fine print in your documents you signed in a rush to get the money.
So how do we find these deals? The first place I would look is in the MLS, with banks taking on inventory at lightning speed there is a tremendous need to dump them cheap and fast. Running ads and marketing will still work but is not nearly as important as the MLS. A private seller can only drop his price so much before he must either create a workout with the lender or bring money to sell the house. If a seller has a bad loan or negative equity why do you want them to call you? Sure you could do a short sale or something creative, but it is easier to go after the low hanging fruit, the easy prey, the banks. Once the lender is the owner of the property, there is no limit to how low they can cut the price. Best of all it not their money it’s the stockholders money they’re losing!
Remember the cheetah is the fastest animal in the jungle and can run down just about any animal. When the cheetah hunts it looks for the slow or weak prey, because of this the cheetah eats every day. If you are able to adapt to the market and think like the cheetah you can create a tremendous portfolio of properties. You must listen to the market and flow with the tide instead of against it. Trying to retail house to the end consumer is a prime example of swimming against the tide in this market. As people are getting out of real estate to get into the next hot fad you need to be picking up their mistakes at pennies on the dollar. Holding the property for one to two years then sell at retail and avoid the short-term capital gains tax. If you play your cards right many of us could see our net worth double or triple in the next 3 to 5 years
In every property owner’s life, there comes a time when you have to make a decision whether it is the appropriate time to sell your rental property or not. It is crucial to put as much analysis and thought into timing the sale of the rental property just as you did when you first purchased the property. In fact, investment gurus will tell you that choosing the right moment to sell your rental property is more crucial to your success as a real estate investor. Here are a few circumstances where it might be sensible to sell your property.
When the Depreciation Benefit is Exhausted
Depreciation is a non-cash expenditure that every owner of a rental property can take. But, after several years, the depreciation tax deduction gets used up on the property. You need to consult your accountant and calculate when this depreciation no longer applies. The Financial Samurai advises that when your investment has ceased depreciating, it is the right time to sell the property.
You Have Owned the Rental Property for Over 12 Years
Usually, the 12th year of owning a rental property is a good time for you to consider selling it. However, this decision does not strictly depend on the 12th year mark. There are two factors to consider:
• Does the current state of the real estate market allow you to sell the property at a reasonable profit?
• Do you have substantial equity in the property to sell?
You need to work with a real estate professional to carry out a current market analysis for your property to help answer these questions.
You Are Experiencing a Negative Cash Flow
You are never comfortable any time you keep losing money on a monthly basis, and it costs you more money to own and maintain your property than the income it brings in. It is possible that you didn’t start off this way, and there are many factors that make a property switch from a positive to a negative cash flow. According to the Brizendine Group, losing money monthly is a strong indicator that you need to sell your property. But, you need to reevaluate this situation and not just make a rash decision when you first encounter a negative cash flow. You need to ask the following questions:
• Are rents expected to increase shortly?
• What are the tax implications? Will the gain be taxed as ordinary income or as a long-term capital gain?
It is not wise to hold on to a property when it is hemorrhaging your cash, especially when you don’t see any probability of the situation improving. However, stop and ask yourself vital questions before deciding to sell.
The Style and Décor of Your Rental Property is Dated
Some of the properties we own are over 20 years old and look dated. Everything might still be working in the home, but the layout and style are outdated. Again, several newer rental properties might have popped out in the recent few years. Thus, prospective tenants have many options and can rent homes with current layouts and décors such as stainless steel appliances, large bathrooms and closets, and granite countertops. If your style is old-fashioned, even if everything in the home works and you are competing with newer properties, it will be difficult to maintain your value. You will be forced to invest a significant amount of time and money to upgrade the property or reduce your rental price to effectively compete with the surrounding properties, or consider selling your property.
Ultimately, the decision whether to sell or not sell your rental property should depend on the short-term and long-term goals that you set when you bought the property. But, as with any other investment, there are times when you need to cut your losses or cash out. So, analyze the situation critically and ask for advice from real estate and tax professionals before you make the decision.