Raise Money to Start Your Business by Selling Your Real Estate for Cash
Are you looking for ways to raise funds for starting your business? If you own a piece of real estate that’s been more of a money pit than a cash cow, you might want to consider selling it for cash.
Why Should I Sell My Real Estate for Cash?
Maybe you’ve been holding onto a piece of real estate for, let’s just say, sentimental reasons. Is it the home you grew up in? A piece of land you once planned to build on if some ever-elusive “someday” were to arrive?
It makes little financial sense to hold onto a piece of real estate that’s costing you more money than you could ever hope to make from it. Time and weather do take their toll, after all, and maintenance is an ongoing concern, to say the least. If you’re dealing with a house that was constructed several decades ago, for example, one minor repair can reveal another more costly or even urgent one, turning what you expected to be an inconsequential outlay into a major expense.
On the other hand, selling that property the traditional way adds even more expense, in the form of commissions to realtors, costly repairs, appraisals, bank fees, and the like.
But if you can find yourself an honest-to-goodness cash buyer, you might do well to make a deal with that person.
Traditionally, cash sales of real estate take place quickly—usually within days—and require little or no cash outlay from the seller. What that means to you is that you could have the money you need to start your business within a very short time—and be on your way as an entrepreneur.
How Can I Find Cash Buyers?
In order to get the best possible cash deal for your real estate, you’re going to have to do at least some of the footwork. You can’t just sit back to wait and hope that a cash buyer will find you, because you’re ready to move now.
Place an ad in your local paper or in the local real estate section of an online listing service such as Craigslist, that reads something to the effect of, “Cash Buyer Wanted – Motivated Seller.”
Also, put yourself out there on social media and let people in your circles know you’re looking for someone with cash in hand for real property you are enthusiastic about selling quickly.
Will I Have to Settle for Less Money?
Know beforehand that you’re probably going to have to sell your real estate for less than market value, but when you consider all the fees and expenses you won’t have to come up with, you still could be getting a great deal.
Then, too, what you’ll be getting in return is a speedy transaction. Most likely, you’ll have your cash in hand within days.
What Should I Watch Out For?
Real estate has been made out to be the Holy Grail of all investment opportunities—with good reason. At the moment, massive amounts of cash are flowing through the industry.
Cash house buyers have been making bank and then some. Some of those buyers are ethical and some are not. How do you tell the difference? How can you avoid unscrupulous scammers ready to prey upon your supposed innocence?
For one thing, make sure your buyer has all the agreed-upon cash in hand before you close the deal. Some dodgy buyers insist that sellers sign an option agreement, locking them into the deal for as long as six months. Then they scramble for investors to come up with the cash, leaving you holding the bag for weeks or months instead of the mere days you were counting on.
Others use the time allowed them with an option agreement—which is almost never a good deal for the seller, by the way—to place the property on the traditional open market, making a killing when they finally sell, but paying you only a fraction of what the property is actually worth.
Time waits for no one, and you know it. If getting your business off the ground is your prime motivator, selling your real estate for cash could be the key to the door to your future.