Saturday, June 7, 2014

Rental Property - Keep Your Income and Give Away the Expense

Baywatch Resort Condos for Sale

If you own a vacation rental property and want to sell, you may find yourself in a dilemma.
Two things typically said by Vacation Property Owners’

1) I just carried the property through the winter and had to pay a bunch of negative cash flow.

2) I don’t want to sell in the summer because I want to keep the positive cash flow for myself.

Here is the dilemma:

Seller: I want to sell but need to recoup the negative income of the winter by renting in the summer.

Buyer: I want to buy the property in the summer so I can have some extra cashflow to carry the property through the winter.

 My Goal for the Seller:

1) Maximize price
2) Collect the Summer Income
3) Shift the negative cash flow to the next owner

 Here is how we do it:

1) Maximize price – The way we get you top dollar is by exposing your property to the most people we can. We do this by making sure we are marketing your property when the demand is at its highest. Demand is at its highest during the summer months.

2) Collect the Summer Income–The way we accomplish this is by listing the property right now. The property will take at least 90 days to sell. So, if it is June then that means it will not get a contract until the end of August. Then, it will take 45 days to close the transaction.

a. List in June

b. Sell in August
c. Close in September

3) Shift the negative cash flow to the next owner – When we follow the above points, you will end up closing the transaction right before the rental income starts to decline.

Following this method allows you to collect all of the summer rentals and have it sold when the rentals taper down. This is the way we make the most income and then shift the losses of the off-season to the next buyer.

We are committed to protecting the equity of those that hire us. We are aggressively applying this strategy right now. If you are interested in selling and eliminating the negative cash flow of the off- season then please contact us immediately. Also, see my June Newsletter for more information about selling cycles and a new video.

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