Pro Tips for Selling Your Investment Properties

Guest Post by: Advantage Realty Inc.

When they first buy their investment property, most investors know they will eventually have to sell the asset. This is quite normal as most real estate investors will do this at one point or the other. Major reasons why investment property owners may sell their investments are:

  • They want to reap the tax benefits
  • The market conditions are right
  • They want to buy a cheaper property in a more profitable location
  • Selling is part of the investor’s strategy

But regardless of the other reasons for selling an investment property, owners always want to cash out on any gains to the property’s value. In all likelihood, the asset has increased in value since it was bought. And as Advantage Realty Inc. explains, that increase in value can only become tangible cash when the property is sold.

Selling an investment property is the only way to convert its value on paper to cash in the bank. But when selling a property, it is not always certain that an investor will actually get as much money from the sale as the property’s market value suggests.  A lot depends on how the asset is marketed.

In selling your investment property, what are the steps you can take to accelerate the sale and ensure you get the best price for the property?

When trying to sell their properties, most real estate investors take the most comfortable route. They use familiar marketing methods that have been around for the longest time. Although these methods are tried and tested, they belong to a past era and are no longer as effective.

That’s because the environment in which properties are bought and sold has changed. Today, everything is digital and mobile. Investors who know how to deploy modern technology, along with the traditional methods, will sell their properties faster and make more money.

Professional tips for selling your investment property

1.      Write great ad copy

Your copy is what creates a connection between your buyer and your ad. Copy encapsulates every message you try to convey via the various advertising media and platforms that you deploy. That message must be evocative and resonate with your target audience, in order to be able to move them to take your desired action. Creating great copy is the first step to winning quality attention.

2.    Use high-quality videos and photographs

Pictures and videos sell more because they are more evocative. People can relate more to the images and messages these media convey. The audience has less work to do to understand the communication because most of it is explained to them. A video ad can say in ten seconds what your written text cannot say in thirty minutes.

3.    Build your own website

Building a website that is solely dedicated to marketing your property will not cost you much, but it will give you incredible mileage in terms of reach and the breadth of your advertising options. You will be able to dispatch digital marketing tools to greater effect. And through the website, you can hold buyers’ attention fully because there will be no competing properties trying to break their focus.

4.    Use multiple listing service (MLS) listings and free websites

Using MLS listings and free websites provide you with access to a huge market. You can take advantage of the audiences these platforms have accumulated to get your property in front of as many people as possible. But to get the most value from these platforms, it is best to pay for an advert on the platform. A paid ad will help your voice get heard above the noise and single you out as a professional.

5.    Take advantage of referrals

You are often one or two persons away from the person who can buy your property. But as long as there is nothing in it for them, people have no reason to connect you to the high net worth individuals they know. A referral system unlocks the power of your connections. It lets you incorporate real estate agents near and far, as well as, your friends, family, and acquaintances into your marketing network.

6.    Buy social media ads

The people you want to reach are probably on at least one social media platform. But trying to find your buyer on social media is like looking for a needle in a haystack; you may waste a lot of time and energy without results. Paid advertising is a way to unlock the power of social media. Used properly, it will ensure that your ad is delivered to the people who need to see it.

7.    Create a virtual tour

The more information you provide online shoppers about your property, the easier it will be for buyers to make a decision. You want to make sure that only those buyers who are on the verge of buying request a physical walk through of the property. One of the best ways to do this is to make a virtual tour of the property and publish it on various online platforms.

There you go, the pro tips you can follow to sell your investment property in no time!

Fee-Only vs. Fee-Based Financial Advice

Fee-Only

Financial Advisors that are Fee-Only are paid directly for their services by their clients. They can be paid either as a percentage of assets they manage, a fixed planning fee, or hourly fees. Fee-Only planners are only paid from their clients. They can charge a one-time fee or an ongoing fee for their services.

Fee-Only advisors have fewer conflicts of interest because they are only paid by the client and their interests are aligned with the client. They only worry about the client’s needs as a result. Fee-Only advisors cannot accept any compensation because of product sales and therefore makes working with them more transparent for clients.

 

Fee-Based

Fee-Based financial planning may sound like Fee-Only but is significantly different. The main difference is that Fee-Based advisors can accept commissions from financial products, annuities, and insurance products that they sell their clients. There tend to be a lot of conflicts of interest for the financial advisor. Fee-Based advisors may do some fixed fee planning but also sell commission-based products alongside the planning fee. There tends to be less transparency with Fee-Based advice.

 

*Davis Private Wealth is a Fee Only Financial Planning firm in Wellington, Florida. As a Registered Investment Advisory firm, we have a fiduciary duty to all of our clients.

New Amazon Prime Credit Card!

As I have been meeting with clients lately, I have continuously brought up the Amazon Prime Credit Card that I recently signed up for. I feel that the benefits of this card are fantastic and worth sharing. If you shop at Amazon and/or Wholefoods a significant amount, then you would benefit the most from this card.

Here are some of the benefits of using this card:

5% back on purchases at Whole Foods and Amazon (3% if you don’t have Amazon Prime)

2% back on purchases at restaurants, gas stations, and drugstores

1% on all other purchases

No foreign transaction fees

Here is a link to all the card benefits on Amazon: https://www.amazon.com/b/?ie=UTF8&node=16070413011

I’m anticipating that our family will spend around $12,000 this year at Whole Foods (since this is Melissa’s favorite grocery store😊). So, with 5% cash back we will get back $600 each year versus the 1% we were getting on our previous card. Of course, I advise that you pay off any credit card balances each month.

 

*Financial Planning, Wealth Management, & Investment Management firm in Wellington, FL.

Wellington History – A Wealth Management firm in Wellington Florida

Wellington was once all swampland. Things got started in the 1950s when Charles Oliver Wellington, a successful accountant from Massachusetts who graduated from Harvard acquired 18,000 acres of swampland. Mr. Wellington named the land south of Southern Boulevard, and west of 441 “Flying Cow Ranch.” C.O.W. were his initials, and “flying” as he was an aviator. There was even once a landing strip for Wellington’s planes at Flying Cow Ranch Road.

Soon after, legislation was passed by the State of Florida to create the Acme Drainage District. This was designed, in 1953, to provide drainage and flooding measures to make the land more accessible for farming. This would later transform into the Acme Improvement District, adding parks and recreation to its duties.

In the 1960’s parts of Flying Cow Ranch were sold or leased to farmers. 2,000 acres soon became devoted to strawberry patches, even claimed to be the world’s largest strawberry patch. In 1953, there was recorded to be only 100 people residing in Wellington. However, it soon became one of the quickest growing areas in Florida, expanding residential areas, as well as service industries.

Major construction began when 7,200 acres of land were sold from the ranch to the Investment Corporation of Florida (ICOF) in 1972. Another developing company, Alcoa Florida joined ICOF to develop a golf course, the 150 acres Lake Wellington, and the Wellington Club. Next, Gould Florida bought out the project and added the Palm Beach Polo and Country Club, as the chairman of Gould Inc., William Yilvisaker was an active polo player. These developments would have lasting impressions on the culture of Wellington, as it is widely known that Wellington is an international hot spot for Equestrian sports.

Officially, the Village of Wellington was created on December 31st, 1995, and act inspired by a group of zealous Wellington residents that was necessary in order to qualify for state funds. Today, the Village is home to nearly 50,000 residents, offering a unique identity as a home for equestrian, golf, polo, aviation, and more. Wellington offers a friendly charm, full of beautiful neighborhoods, and boasts 11 A-rated Palm Beach County schools. The Village of Wellington’s history is far from complete, as it continues to steadily grow today.

Our firm, Davis Private Wealth, is happy to be located in such a great community as Wellington. We pride ourselves in being one of the premier Wealth Management firms in the Wellington area and all of South Florida. Located right on 441 we are in a great central location with easy access from the turnpike.

Hurricane Preparedness

The majority of our clients live in South Florida and so hurricane preparedness is a necessity. Hurricane encounters are inevitable and you want to be ready whenever one occurs. A hurricane is a powerful storm that develops over warm, tropical waters and can sustain wind forces of 39 mph or higher. Hurricanes can bring heavy rains, flooding, and heavy winds capable of damaging property. In Florida, we are especially vulnerable to hurricanes. Hurricane season is roughly from June 1st to November 30th, but hurricanes can arise before or after these days.

1. Check on your insurance. (Months in advance)

  • Verify that you have a Flood Insurance policy.
  • Look over your Homeowners Insurance policy with your agent or with us to make sure your properly covered.

2. Hurricane preparedness is essential. The steps you can take to stay safe include:

  • Create an evacuation route and be ready to leave the area if necessary. Several of our clients stayed in Georgia or North Carolina during 2017 hurricane Irma (https://en.wikipedia.org/wiki/Hurricane_Irma).
  • Locate nearby shelters in case you are unable to evacuate.
  • Note the safest room in your house, preferably with no windows towards the center of the house.
  • Keep important documents in a safe place or upload digital copies.
  • Purchase a generator to use after the power goes out.
  • Create an emergency kit.

3. Your emergency kit should include (from ready.gov). (Weeks in advance)

4. If a hurricane is approaching. (Days in advance)

  • Put up your hurricane shutters, close your shutters, or board your windows.
  • Trim trees and shrubs as well as clear gutters.
  • Bring in outdoor furniture and decorations, these are often thrown around or at least damaged.
  • Fill your bathtub before a storm for flushing and washing only.
  • Fill gas cans for back up gas and for the generator.
  • Be sure to fill your gas tanks on your cars far in advance of an approaching storm, waiting until the last minute can leave you with long lines or no gas at all.
  • Turn on your TV and check the forecast periodically for weather updates and emergency instructions.
  • Charge your cell phone batteries.