Selling your portfolio and ridding yourself of your existing properties is a big decision (and not one you want to take lightly). Usually, it means you are shifting away from property investing as an asset class, or you want to cash in your gains, freeing up extra capital for new and more lucrative opportunities.
But how do you get it right? That’s the topic of this post. We explore how the pros sell their property portfolios, and what you need to do to master the process. By the end, you should have a more solid understanding of a suitable strategy.
Define Why You Want To Sell
The first step is to define your goals and explain to yourself why you want to sell. Are you looking to make a quick profit or is there another reason for your decision?
In some cases (like a bad economy) you might want to sell your entire portfolio (or a lot of it) and plow money into other projects.
In other cases, you might want to test the waters, selling your least profitable properties first and using the money to find higher capital return opportunities.
Explore Your Options
The next step is to look for various channels through which to sell. In some cases you might want to use a traditional real estate agent if you have a positive or long-standing relationship with them. They can help sell properties individually and give you a heads-up on what they are probably worth.
You could also try selling the property to a fast buyer for cash. This approach gives you the money immediately and prevents you from having to go through all the usual headaches. (However, you will likely have to sell at a lower price).
Lastly, you might consider using an investor sales agency. These work with people who invest in properties and can point them in the right direction.
Get Professional Help
After exploring your options, the next step is to assemble a team. You want people who can handle the entire process smoothly, helping you get the results you want.
Start by finding someone who can help with real estate photography. Presenting your properties in the best possible light makes them more sellable.
Next, look for a solicitor who understands how to sell investment properties. Get them to double-check all the deeds, titles, and paperwork to ensure everything is sound.
Having an accountant onboard can also help if you anticipate paying capital gains tax. These professionals can walk you through the implications of your decisions and tell you where you might face bills.
Prepare Your Properties
At the same time, it also helps to prepare your properties for sale. You want to get an appraiser to check their fair market value so you can set a realistic asking price before making any necessary improvements. Then, you’ll want to go ahead with work you expect to increase the value further. Don’t just spend money for the sake of it. If there’s no return, leave it to the property’s new owners to sort out.