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By Kathy Kennebrook
Another way Kathy Kennebrook suggests to sell properties, especially properties that need repairs is by implementing a Work For Equity Plan. This is a good way for you to get a higher dollar amount for properties that need some work instead of simply wholesaling them. This is another way to drive potential buyers to your properties no matter what your current market is doing.
So what does Kathy Kennebrook mean by Work For Equity? Simply, it means that you have a property that needs some repairs that you want to sell. Instead of wholesaling it, you will sell it to an end user or homeowner who will do the repairs in exchange for some of the equity in the home. You can either sell your properties this way or lease/option your properties using this method. Kathy Kennebrook has done both successfully.
For example, say you have a home that all fixed up would be worth $150,000 and it needs around 20,000 in repairs, perhaps paint, carpet, appliances, or bathroom rehab. You should have purchased this home for around 82,000 or less if you structured your purchase correctly. You could then lease/option or sell this home on a Work For Equity program for around 115,000-120,000. This gives your buyer an opportunity to gain some sweat equity in the property by doing some of the work themselves and allows you a big paycheck at the end without having to do any of the repairs yourself. Kathy Kennebrook likes using this technique to sell properties since it gives a potential buyer the opportunity to purchase a home when they might not have been able to do so otherwise.
You have to be very specific about the terms when selling or lease/optioning a property this way as to what repairs are going to be done and in what time period. Kathy Kennebrook provides a list to the buyer of repairs that need to be done and she goes over it in detail with them. Kathy Kennebrook then has them sign an agreement stating that these repairs will be completed within a specific timeframe which might be 12-24 months, depending on what you and your buyer agree on. Kathy also keeps tabs as to what repairs have been completed. While the repairs are being done to the property, Kathy Kennebrook also has her mortgage broker working with her buyers in order to get them qualified for a mortgage once repairs are completed. She will allow the buyers to live in the property while repairs are being completed as long as the repairs are not something that is going to create a dangerous situation for the buyers.
This is a really good way to sell homes that need work and make more money on them than you would if you had just wholesaled the property. Selling homes on a Work for Equity program will bring you buyers that would otherwise not be able to purchase a home so it creates a win-win solution for all involved, and brings you buyers you would not have had before. In a sluggish market, this is a really good way for you to sell properties that need rehab and make really good profits on your deals.
For more information on buying and selling houses quickly in any market, visit Kathy Kennebrook’s website at marketingmagiclady.com.