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Why Selling Your House to an Investor Can Be a Smart Move

If you’re looking to sell your house quickly or without the hassle of traditional home-selling methods, working with an investor can be a smart move. Here are a few reasons why:

  1. Fast closing: Investors can often close on a sale within a matter of days, rather than the weeks or months it can take to sell a house through a real estate agent.
  2. No need for repairs or updates: Investors will typically purchase a house as-is, which means you don’t need to make any costly repairs or updates before selling.
  3. Simplified process: Selling a house through a real estate agent can be a complex process, involving numerous showings, negotiations, and paperwork. When you sell to an investor, the process is usually much simpler and more straightforward.
  4. Cash payment: Investors often pay in cash, which can be beneficial for sellers who need to sell quickly or who are looking to avoid the potential complications of financing.

Of course, there are also potential drawbacks to selling to an investor, such as the possibility of receiving a lower offer than you would through traditional methods. However, if you’re looking for a fast, easy, and hassle-free sale, selling to an investor can be a smart choice.

Selling Your House For Cash: Common Myths and Misconceptions

There are many misconceptions out there about selling your house to an investor. Here are a few common myths, debunked:

Myth #1: Investors only offer lowball prices. While it’s true that investors may offer less money for your home than you would receive on the market, they can also offer a fast and easy sale that may be worth the tradeoff.

Myth #2: Selling to an investor is risky or fraudulent. While there are some unscrupulous investors out there, there are also many reputable companies that can provide a fair and transparent sales process.

Myth #3: You can’t negotiate with investors. While investors may have less flexibility than buyers on the market, you can still negotiate the terms of the sale and push for a higher sale price if you feel that the offer is too low.

Myth #4: Investors only buy ugly houses. While investors may be more willing to purchase homes in need of repairs or updates, they can also purchase move-in ready homes if it makes sense for their business model.

Myth #5: Selling to an investor is only for desperate sellers. While selling to an investor may be a good option for those who need to sell quickly or without the hassle of repairs and updates, it can also be a smart choice for those who simply want a fast and easy sale.

By understanding the facts about selling to an investor, you can make an informed decision about whether it’s the right choice for you.

How Cash Sales Work and What You Can Expect as a Seller

By now, most of us have seen the advertisements, or heard about the option of selling your home for cash. As a seller, especially if you’re looking to sell quickly and avoid the hassles that go along with a traditional home sale, you might be wondering whether or not there’s a “catch” when it comes to cash sales. Is it as simple as it sounds? What kind of documentation is required? Are there any downsides to selling for cash?

We caught up with real estate expert Charlie Einsmann, one of Clear Sky’s owners, to find out just how cash sales work and what you, as a seller, need to know. Einsmann and his partner, Sam Jacknin, started purchasing homes for cash in 2004, and founded Clear Sky Properties, LLC in 2005. “Cash for us is the same thing as purchasing homes using a combination of cash, equity lines of credit and broker lines of credit, which are backed by substantial assets,” says Einsmann, “so purchasing a home for cash is really just purchasing a home without needing the bank’s money.”

Both owners have more than 20 years’ experience in real estate, with Einsmann starting out as a traditional realtor before branching out to other parts of the industry. “We started out purchasing a fix/flip in 2004, and have been investing in similar properties ever since,” he says. “We’ve also kept some of the properties rather than flipping them, and have used those to build a large rental portfolio.”

The duo has gone on to build up a thriving real estate business, not only purchasing homes for cash, but also helping other investors finance properties. They also recently jumped into the world of podcasting with their series, “Basement Tales”, which provides tips on real estate investing.

With so much experience and expertise, it makes sense that Clear Sky Properties has all the information you need to decide whether or not selling your house for cash is the way to go. Here’s a breakdown of all the pertinent information we took away from our Q & A with Einsmann:

What are some of the requirements or documentation a seller will need in order to have Clear Sky Properties purchase their home?

The only thing we need is proof of ownership and information on how much is owed on the house. We have a simple three-page sales contract, and we take care of the rest of the paperwork needed to close.

How long does the process take?

We can complete the sale in as little as two days. It might occasionally take longer if the title company has to wait for final payoff information for any loans or liens on the property, but we can still close in two days and escrow the payoffs if the sale is urgent.

Do you require inspections or appraisals?

There are never any inspections or appraisals. We purchase your home as an “as-is/where-is” sale.

Is there ever a situation where you aren’t able to purchase a home, or a reason you might be unable to work with a particular seller?

The only situation where we wouldn’t be able to purchase a home is if the total amount owed on the home far exceeds the purchase price. However, if the amount owed vs. sales price is negligible, we simply pay that additional amount as well.

There is never a reason we can’t work with a seller, but it is important that we verify who the seller or sellers are, and we will need to be made aware if there is more than one seller. There might also be a situation in which a seller is incapacitated, in which case we can help facilitate a guardian ad litem to help with the sale. 

What are just a few of the positives when a homeowner opts to sell their home for cash? Any negatives?

I can’t think of any negatives, but there are definitely a lot of positives when you sell your house for cash. It is the quickest way to sell and is only dependent on the title company, as opposed to finding qualified buyers, having people traipse through your house, and dealing with a mortgage lender. There are also no contingencies like appraisals or inspections. We’ve been able to purchase homes in less than 24 hours, making for a quick and seamless transaction.

With such a simple, easy process, it makes sense that many sellers are choosing to sell their home for cash. The experience and know-how behind Clear Sky Properties makes the process even easier, and as a seller, you can feel confident that no matter the condition of your home or the circumstances of the sale, you’ll have your house sold and cash in hand in no time!

How Selling Your House for Cash can Benefit you Financially

People sell their homes for a variety of reasons. Sometimes, they’re simply upgrading, downsizing, or moving to a new city. But other times, they sell because they need to liquidate and get the equity out of the house right away. And while real estate is generally a good investment, in some situations, selling, and selling quickly, can be a good move financially.

A traditional home sale can 30 – 45 days, or longer. But when you sell your house for cash, you’ll have money in hand almost immediately, and there are circumstances where it makes sense to take advantage of this option.

Job loss

Right now, the unemployment rate in the U.S. is at an all-time high. As our country struggles through a global pandemic, many businesses have closed down, some permanently. And while there is a light at the end of the tunnel, with jobless rates dropping slightly in recent months, we are still well-above pre-pandemic levels.

If you’ve lost your job and know that it may take some time to find another, or you get offered employment in another city, selling your house for cash might be the best way to keep yourself financially solvent. Rather than depleting your savings to make a house payment, you’ll be able to use that money, along with the cash you take away from your home sale, to keep your finances stable as you start a new job or career path.

Divorce

Divorce, which is often emotionally devastating, can be financially devastating as well. Between lawyer fees, child custody, or just trying to divide up joint property, it’s a lot to deal with, regardless of how amicable the overall split might be. Making the decision to sell your home for cash can streamline things, and both parties will be able to get their equity out of the house and move on quickly.

Rather than having to go through the process of putting the house on the market, dealing with realtors, buyers, mortgage lenders and all the potential pitfalls that go along with selling a home, selling for cash means one less worry.

Looming foreclosure or bankruptcy

As most of us know, when your home is foreclosed on, your credit takes a big hit. After foreclosure, it’s not uncommon for even the best credit scores to drop by upwards of 100 points, which can take years to rebuild. The same goes for bankruptcies. What sounds like a solution to mitigating your outstanding debt can turn into a long-term credit nightmare and prevent you from qualifying for any kind of new credit, much less a mortgage, for years.

Rather than allowing your home to sink into foreclosure, or filing for bankruptcy, selling your home for cash is a real and immediate solution. You can pay off your mortgage and cash out your equity, all without marring your credit or ruining your chances of future home purchases. Your cash proceeds can help you start over, and you’ll be able to do so without waiting for a potential sale to go through or dealing with the foreclosure process.

Your house needs a lot of repairs or improvements

Upgrades and repairs are often expensive, which is why many people tend to defer maintenance or avoid making improvements to their home. When it comes time to sell, most buyers will want to have a professional home inspection before closing, and those inspections often unearth a multitude of needed repairs.

When you sell your home for cash, you’re able to sell it in “as-is” condition, which means you aren’t shelling out extra money on repairs or maintenance issues. You also don’t have to worry about cosmetic improvements like painting or putting in new carpet, all of which can be both time-consuming and expensive. You’ll be able to walk away from your old house without having to deal with any of the potential repair issues that come with a traditional sale.

Family emergencies

It’s impossible to predict when a family crisis might arise. Whether it’s an accident, illness, or some other unexpected event, an emergency of any kind can be frightening, not to mention financially stressful. When you have to worry about money during a family emergency, it only compounds an already traumatic situation.

Health issues or unexpected disasters can make a quick mess of your finances, but if you sell your home for cash, you’ll be able to get what could be much-needed money in a short amount of time. Being able to concentrate on dealing with the emergency without worrying about where the money will come from can be a huge benefit to you and your family, and selling your home for cash can help give you peace of mind.

No matter what your own situation might be, there are plenty of times when it just makes good financial sense to sell your home for cash. Clear Sky Properties can offer a quick sale, putting that cash in your pocket and giving you the chance to move forward, without leaving your finances in tatters.

Five Things You DON’T Have to do When You Sell for Cash

Selling your home can be a stressful and time consuming endeavor. From prepping it for the market, retaining a real estate agent, and hoping you can actually get qualified buyers, there are a lot of things that have to fall into place for a home sale to happen. Even with the help of a realtor, you’re looking at a lot of work, time and money, and no matter what, there are almost always at least a few hiccups in the process.

That’s why more and more people have started utilizing real estate experts who will purchase your home for cash. Being able to sell your house for cash is appealing for many reasons, as it removes a lot of the pressure from those sellers struggling to get their house on the market. All the things you have to do to before you can sell your house, as well as concerns about whether or not your buyers are qualified and making sure the deal doesn’t fall through, are real worries that homeowners have to think about when it comes time to sell.

When you sell your house for cash, that to-do list and worries become things you really don’t have to think about anymore! Instead of all the things you’ll have to do to sell your home, take a look at all the things you don’t have to do when your home is purchased for cash:

You don’t have to get (and pay!) a realtor

Depending on where you live, most realtors take a commission of 2.5 to 3%, based on the sales price of your home. As the seller, it is your responsibility to pay that fee, which can add up to tens of thousands of dollars. Sellers are also often required to pay the commission for the buyer’s agent as well, which means you’re losing upwards of 6% of the sales price of your home. With a cash purchase, you don’t have to worry about any realtor fees or commissions.

You can avoid expensive and time consuming upgrades or maintenance

In order to get your home looking as good as possible before you put it on the market, your realtor is likely to suggest that you take care of any deferred maintenance and do some upgrades around the house. This can mean painting, new carpet, fixing that cracked window, or even replacing the roof. These projects are, at the very least, time-consuming, not to mention often quite expensive. Going with a cash purchase means your house can be sold “as-is”, without having to invest in any kind of repairs or improvements.

You don’t have to wait 30 – 45 days to close

There are plenty of reasons you might not want to wait around for the buyer’s mortgage lender to schedule a closing date. Maybe you’re moving to a new state and need the money right away, or maybe you have a family emergency that makes selling and getting that cash quickly a necessity. Whatever the reason, if you sell your home for cash, you can close on that sale in as soon as one week, putting your house’s equity directly into your hands without waiting for the finalization of endless closing documents.

People aren’t going to be traipsing through your house

Putting your house on the market means opening it up to potential buyers, which means keeping your house looking staged and perfect at all times, not to mention having to vacate the premises every time there is a showing. No one really loves having strangers wandering through their homes, especially right now when we have a global pandemic on our hands. If you sell for cash, there aren’t any buyers or realtors coming in and out, no open houses, and no stressing about the house being pristine while you’re trying to pack and move.

You don’t have to worry about the deal falling through

There are a million ways a home sale can fall through, and as a seller, it can be financially and emotionally devastating. Your buyer comes in, loves the house, makes an offer, and you think it’s all a done deal. Then an issue pops up with the inspection, or the appraisal comes in lower than expected. Or maybe those perfect buyers end up not being as qualified as you (or their lender) thought. The time and trouble of an “almost sale” can be difficult to recover from, but with a cash sale, those potential deal breakers are non-issues.  Your signed contract guarantees the purchase of your home, without the potential hassles of inspection repairs or buyers backing out.

Getting your house sold can feel like an insurmountable task, but it doesn’t have to be that way. Here at Clear Sky Properties, we not only make it easy for you, we make it a positive experience. You’ll have cash in your pocket within a matter of days instead of months, all without any of the stressors of a traditional home sale. And instead of having a million things to do to make that home sale happen, you’ll be able to enjoy all the things you don’t have to do!  

Focus and Action

Every real estate investor has a three-part dream. Firstly, they hope to find a deal of huge economic value. The second part of the dream is that they recognize the opportunity that they see. Finally, the investor must be ready and able to act on their discovery. The investor is rewarded when he/she makes all parts of the dream happen. If you really want to experience regret, find a great deal and then pass on it because you don’t see the value. When the next person comes along and extracts the value, you might have a real fit over your missed opportunity. Recognizing that there is a deal may cause excitement; but wait until it is complete before celebrating. The final step of acting/closing can require courage; but being well-prepared to act reduces stress. Action alone is insufficient to bring success because acting on bad deal or without direction can cause devastating monetary losses. Knowing that there is a deal but not being ready to act on it is also a recipe for long-term regret.
Getting prepared for the last step, action, is our first step in the process of putting a successful deal together. We don’t have knowledge of when deals will come up in the market or what they will be; however, we do know that we need to be ready for the times that the deals show up. Our banking, accounting, back-office, and contractor network is always at the ready. When we discover a deal, we are ready to “roll out” and put it together. This readiness enables us to focus on deal acquisition and analysis at critical times. We do not find ourselves in front of a prospective seller debating on if and when we can buy a property. We arrive ready to buy the property at any moment and close in a day.

Eight Habits that Help Average People Make Millions

I grew up an average person in an average community having average parents. I am also the most uneducated person in my family from a college viewpoint. What separated me from the rest? Well, it is simple but it is hard. Below are eight simple but hard habits that helped catapult me from an ordinary wage earner to making a much better living. You also have to understand that I started with zero: no trust fund, no money in an off shore account, and certainly no mentors…

  1. Set Short-Term Goals and Long-Term Goals. You need to get into a habit of setting goals. Here is a simple path that I have always followed. First, you need to set your long-term goals. Once you have set your long-term goals, do a list of the short-term goals needed to achieve the long-term goals. Once you have the list of short-term goals, you need to set your daily schedule to achieve your short-term goals. The most important part of this is to cross off the short-term goals as you reach them. This will give you the confidence to maintain the course. As you are crossing off goals, you might be also adding new goals as things change.
  2. Aim continually to leave your 9-5 job behind. The first thing you need to do is quit your job. It’s called a J-O-B, which means JUST OVER BROKE. You are working a 9-5, you are getting someone else richer, you have got an hourly rate/salary, you are limited to how much money you can make, and you cannot really go beyond the industry average there, right? Most multi-millionaires and billionaires own businesses because there is no limit to how much you can earn in a business. You can flip one, 10, or 100 properties. But for the person with a job, there are only 24 hours in a day—and many of those hours are taken up while you’re only getting paid an hourly rate/salary.
  3. Understand Good Debt Vs Bad Debt This country has so much unsecured debt (bad debt): student loans, car loans, credit cards, etc. Only spend what you can afford to spend, which means the money that you have in your account should be the money that you are spending. There is also good debt. Any debt or leveraging used for your investments is good debt. Just be cautious to not get over leveraged. Leveraging is a smart way to increase your net worth if used correctly.
  4. Stay frugal. When I started my journey as an entrepreneur and a business owner, I understood that I had to keep costs to a minimum and drive revenue. That means do not buy a new phone (unless you need one), do not buy a new suit, and do not buy anything that is not necessary for your day-to-day living. There is no need to spend money on things that do not give you a return on investment. Instead, spend one dollar and get two back.
  5. Learn to sacrifice everything and anything. This is probably the hardest step. There are not any walks in the park, and there are not any extravagant vacations. I worked very hard and I still do work 12 – 14 hour days. I try to take one or two days a week off. Every dollar that I have I invest back in my business. Nothing comes easy in life. You have to work hard, you have to sacrifice, and you have to do whatever it takes. You have to put everything on the line. If you want to succeed, there are not any excuses and it’s going to take a lot of hard work. I do not believe in luck. I believe in hard work.
  6. Methodically invest in property. I am not sure what the statistics are out there, but the majority of multi-millionaires and billionaires all have very large property portfolios. There are many ways that you can invest in real estate, as you know. Regardless of the niche you use, you want to get to a certain level of financial status where you can buy and hold. One way to create long-term wealth is by buying and holding properties. They hopefully will appreciate in value, which will hopefully continue to expand your multimillionaire status, and you will also receive residual income from them so you can achieve true financial freedom and enjoy your life.
  7. Surround yourself with the right people. You need to figure out where the people you aspire to be like, hang out. In real estate it is easier. I bet you, your first million dollars earned that some of these people might be at Real Estate Investor Association events. Just find the events. Surround yourself with other real estate investors who are doing great things. They say you are who you are with. So make sure that you network. Throw yourself out there. Go to conferences, shake hands, talk to people, email them, cold call them. Network equals net worth. If they are worth $10 million, at least they will pull you up and you will be worth a couple million. You are who you are with. Have the right people around you.
  8. Become an Expert I am an EXPERT in the residential real estate investment field. Did I just wake up one day and someone crowned me an expert? No, it took years of reading, educating and actually doing it. How do you find distressed assets? X’s and O’s of hard money lending, tax lien certificate investing, buy and hold investing. These are some of the areas that we are EXPERTS on! So take the time and work to and learn and do. Nothing can replace experience!