Investment property can provide a great return on investment. Sometimes you may want to move on from one investment to a greater one, among other reasons you would want to exit out of a property. To make an easy exit you can sell to an investment company, sell to a cash buyer, or offer seller financing.
An easy exit out of an investment can be to sell to an investment company. This can allow you to make a profit on your property as the investment company will be able to buy at a higher price. You could also bring in another investor if you still want some benefit from the profits. You would share profits but can still make a great return on investment by doing a joint venture and reduce your risk. When you do sell you can do a 1031 exchange to defer the capital gains tax, leaving you with more money for your next investment.
Selling to a cash buyer can help make an easy exit out of an investment property. Selling for cash is fast and easy compared to selling to someone with a mortgage. Cash offers can close much more quickly because they do not have to wait for appraisal before securing the mortgage. You may also be able to get more money from a cash buyer than from a buyer with a mortgage.
Selling an investment property is great for making returns on your investment. When selling your property, you can offer seller financing. This may lead your buyer to pay more. Another benefit is that you will continue to get monthly payments including interest. Most deals will include 30% down and balloon payments. You do get taxed on this income; however, it is only what you receive each year and includes taxation on just the principal. While this can be a straightforward way to get out of a property, there is some risk involved that you could have to take the property back if the buyer defaults on the payments.
In investing, sometimes you need to move on and move up. This may be the case with your investment property in which you need an exit strategy. To make an easy exit you can sell to an investment company, sell to a cash buyer, or offer seller financing.
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