In today’s world, there are thousands of different types of payment methods, currencies, and trading systems used to exchange money for goods. Real estate is no different. There are several ways to purchase property, and each of them come with advantages and disadvantages. We buy houses in Philadelphia, PA primarily 3 ways. How do we decide how to pay for a property? It all depends on the situation, the short-term plan, and the long-term plan. If you see a house that is being sold on Craigslist, it is in your best interest to buy that house in Philadelphia using cash because it is faster. That’s just one example, though. Let’s explore the real estate strategies by reviewing 3 ways that we buy houses in Philadelphia today.
We Buy Houses in Philadelphia Through a Bank
This is your standard house purchasing strategy that many of you probably already know about. Typically, an owner occupant home buyer will use this payment method to buy a house that they plan to live in for a long time. Real estate investors will occasionally use this strategy as well. An example of when Brotherly Love Real Estate buys a house in Philadelphia through a bank is when the property still produces a strong cash flow and return even when putting a 20% down payment. Here’s an example:
- Purchase Price: $100,000
- Down Payment (20%): $20,000
- Renovation Cost: $50,000
- All-in Total Cost: $70,000
- Resale Value: $225,000
- Total Profit: $75,000
Purchasing property through a traditional bank typically has a longer wait time for the financing to be approved. That is one of the downsides. If the seller needs to ‘sell my house fast‘, then you may lose the deal if you cannot close quickly enough.
We Buy Houses in Philly Cash
The grand master real estate investing strategy is buying properties using cash money. Cash is King! And it is extremely useful for many reasons. When we buy houses in Philly using cash, we stand out from other offers. Often, homeowners will consider selecting a cash offer over a traditionally financed offer because there are less things that could go wrong during the closing process. This is a best practice for first-time home sellers. Always consider the best offers. You will most likely recognize the signs around Philly stating that we buy houses for cash. The reason companies promote that is because it is one of the strongest factors in an offer for your home. Buying homes through a traditional bank is not only slower, but your financing can still fall through somewhere along the process, leaving the seller hanging. Make offers with confidence, and buy houses in Philly using cash whenever possible.
Buying Houses with Partners
Team work makes the dream work. There is no question that partners can complicate things in business, as well as make things much easier. We buy houses in Philadelphia with partners if it makes sense for that specific real estate deal. If you are low on capital and need helping buying a house, you can reach out to partners to help you close the deal. Are you planning to buy multiple properties this coming year? Don’t be afraid to reach out to partners to collaborate and build wealth together through real estate.
There are various methods and ways to purchase property. You can buy houses with cash, traditional bank financing, or with partners. All 3 ways lead you to your end goal of purchasing and owning property. Consider all factors when deciding how to buy a place. We buy houses in Philadelphia in any condition, shape, or size. If you want to sell your house now, reach out to us at (215) 769-9875 and we can assist!