Rental properties can be compared to a game of poker. Timing can be very important. As the old saying goes: You gotta know when to hold ‘em, and when to fold ‘em.
Reasons to sell may include one or more of the following:
- When there is no more depreciation to write off on a property
- As a landlord, you are tired of the “four Ts”: Taxes, tenants, termites and trash
- A very good (1031) tax-free property exchange deal comes along
- You are suffering consistent negative cash flow, with no end in sight
- Your investment priorities have shifted, say from owning properties to owning notes
- Changed personal circumstances (injury, illness, divorce, loss of income, etc.)
- Changed business or cash flow investment strategies, i.e. retirement or a geographic change
Checklist of Ways to Market an Investment Property
- List your property with a local (investor-friendly) realtor
- Run a classified ad in nearby newspapers
- Put a “For Sale” sign in your front yard, listing the property address and contact info
- Put up more “For Sale” signs at major cross streets near your home, say on the weekends.
- Post the property for sale in Craigslist ads
- Post it for sale on the Facebook Marketplace for your area
- Create your own website and list your property there
- Do a Google search for the websites that others run for FSBOs (For Sale by Owner). Here are four: forsalebyowner.com, byownermls.com, zillow.com, redfin.com. These (and many other similar services on the internet) reach millions of buyers all over the world.
- Set up an eBay auction to list/sell your property
- Advertise on Pay-Per-Click mediums such as Google Adwords, featuring your listing website
- Create online banner ads to run on real-estate-related websites
- Join local some Real Estate Investor (REI) clubs and forums. Many of them feature classified ads, have/wants, etc. for member-to-member usage
- Join REI forums such as Creative Investors and BiggerPockets Marketplace to get the word out about your property
- Make contact with local property management companies. They often get queries from interested investors looking for properties to buy
- Create a for-sale flyer. Attend local real estate auctions, tax sales, foreclosure auctions, which are normally populated with many cash buyers. Hand out flyers about the property you have for sale, and alert each of them that you may have more properties for sale in the future
- Saturate your neighborhood with for sale flyers, door to door. It is often the case that good friends and relatives want to live near those they care for and may pass along your flyer to those they know
- Generate a list of all the properties in your area that have sold for cash over the past year or two. Mail them your flyer, along with a note asking if they might be interested in buying more properties down the road
- Look for “For Lease” or “For Rent” signs (and ads in Craigslist, etc.). Many of them own multiple properties and may be looking to acquire more. Yours might be a good fit for them.
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