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In today’s Maji’s Market Minute, we are going to be discussing how to buy and sell in the same market.
There are ways to do this. it is not completely undoable. But you do need to have a very savvy realtor with very good negotiating skills in order to pull this off. So what are the options? This is the big problem in our market right now. We have got a lot of homeowners that would like to sell and take advantage of this market but they are house locked. They don’t have a place to go. So what do you do?
Option 1: Your Realtor could negotiate a post-occupancy agreement. Basically, lease the property back from the buyer of your listing. That is done all of the time. I have negotiated many of those in this market.
Option 2: Have your Realtor negotiate a contingency in the contract where it would be contingent on the seller buying & closing on another property. You have to put in a time frame like two or three months.
Option 3: Get a bridge loan, but unfortunately they don’t really exist right now. Bridge loans are not really an option in this market.
Option 4: Get an equity line on the property, but this must be done way in advance. The lender will not give you an equity line if your property is on the market for sale. So you really have to do this well in advance. If you had an existing equity line you could use it to secure and purchase a new property. That would probably be the least expensive way to do it and then comfortably sell your home and pay everything off.
Option 5: Acquire a conventional loan. A regular conventional loan and/or equity line would be the least expensive options for purchasing a new property while you’re trying to sell your property if you’re lucky enough to qualify for a loan while you still own another property and also have the cash flow to float both of them while you sell the other property. So what happens to people that don’t have that ability or do not qualify or don’t have the cash flow? There is another option.
Option 6: Is a very interesting option that I will be explaining in more detail in my next Maji’s Market Minute. Basically, there are companies that I’m working with that will buy the property for you. You would identify the property you want and we would have to determine a price and terms for the offer. They would buy it for you cash so you would actually be a cash buyer. Then you would lease it back from this company until you sell your listing. It does come with some costs associated with it, but in my opinion it’s less than what a bridge loan would be. Definitely not less than an equity line but not everybody has that ability. If you have any interest in this product, give me a call. It is a very interesting product. I’m working with them now.
Like Majic, I’ll get it closed.
Maji Pace Ramos |📞305-519-7940 | 📧maji@majisold.com
