“Cash is King”, but the Rook, Bishop, and Knight Protect the King
Selling Your Rental Properties
So, you are a property owner, and you want to sell. Whether you have one rental or a portfolio of 100 doors, it’s important to craft a purchase plan that addresses your specific concerns. Investors like us can and often make purchases with cash. However, the more sophisticated well-funded firms can craft solutions to meet the sellers’ needs beyond simply cash. Some of the more common concerns we see from landlords are capital gains implications, problem tenants, looming capital improvement expenditures on the horizon, or the desire to retire while retaining an income stream.
The Knight: Tax Moves
We have experience crafting solutions with investment property owners, which has helped them achieve their goals while lowering their tax burden. Be it to minimize or defer capital gains tax or to maximize tax-loss harvesting, a good buyer will be nimble enough to help you arrive at the optimal solution. The folks we buy from need the buyer to have the flexibility to coordinate the timing of the purchase for a less stressful 1031 exchange or selling properties outside of enterprise zones for assets inside enterprise zones.
The Rook: Property Issues
Some investors just buy turnkey properties. Not every investor can take on the difficult tenants, squatters, code violations, and other issues with the property. At Home Sell, we can also look at payment plans, short-term owner financing, or other creative options that build a solid win-win deal.
The Bishop: Preserving Income
Liquidating your portfolio should be a relief if you are retiring; however, reinvesting the proceeds can quickly become an unforeseen burden. Many retiring landlords may be conservative investors who just want a steady headache-free monthly retirement income to continue. With CD yields at less than 1% and inflation on the rise, selling looks challenging for those who want to preserve their capital. To simultaneously alleviate the burdens of being a landlord and reinvesting the proceeds, we have used various tools such as master lease options and long-term owner financing in situations where continued secured income was what the seller wanted at the time of sale.
To conclude, when you have built up a portfolio of rental properties, and you want to exit, you need a creative, cash-strong, experienced buyer who can think outside of the box to work with you in your specific situation.
(203) 815-1890