GCU News & Blog

Author: Zach Cohen

  • How to Sell Your House in Minneapolis Without Commissions and Hidden Fees

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    Selling a house can get pretty complicated and costly, especially with conventional real estate agents. With big commissions, closing costs, and probable repairs, the fees just add on top of each other and eat into your profits. Still, if you’re after a method that would help you in selling your house in Minneapolis without commissions and hidden fees, you are not alone, and there are strategies that could help you.

    One of the most straightforward and hassle-free ways to sell your home is by working with Minneapolis house buyers who specialize in buying homes directly from sellers. Here’s how to sell your house in Minneapolis quickly, efficiently, and without unexpected costs.

    The Downsides of Traditional Real Estate Sales

    When you sell your home through a traditional real estate agent, you’re typically looking at the following:

    1. Agent Commissions: Standard real estate agents charge a 5-6% commission of the sale price. On a $300,000 home, that’s potentially $18,000 out of your pocket.
    2. Closing Costs: Sellers are often responsible to pay 1-3% of sale price in closing costs. These expenses include title insurance, escrow fees, and transfer taxes.
    3. Repairs and Staging: Many buyers expect homes to be move-in ready. This could lead to thousands of dollars spent on repairs, upgrades, or professional staging to make the home more appealing.
    4. Delays: From listing your home to closing the sale, the traditional process can take several months. This can be a significant burden if you’re on a tight timeline.
    5. Uncertainty remains: Even on a found buyer, financing might kill the deal or an inspection might reveal undesirable information, adding stress and possibly delaying.

    How to Avoid Commissions and Fees

    Fortunately, there are alternatives to the traditional route that can save you time and money. Here are the top methods to sell your house without commissions or hidden fees:

    1. Sell to a Cash Buyer

    Cash buyers purchase homes directly, and you will, therefore, not pay commissions to any agents. Also, with most cash buyers, homes can be purchased “as-is,” so you may avoid costs of repairs, cleaning, or staging.

    Cash buyers don’t waste time with loan approvals and appraisals, thereby fast-tracking the process. Having the liquid cash allows you to quickly close and get on with your plans.

    2. For Sale by Owner (FSBO)

    The other alternative is to sell a house yourself, with no commissions. At any rate, FSBO has its challenges. You will have to deal with marketing the property, setting a price at which it will be competitive, negotiating with prospective buyers, and handling all legal paperwork. Where this cuts out the agent’s fees, it could be extremely time-consuming and might not always result in the best price. You might still be faced with closing costs and other fees.

    3. Work with a Local Home Buyer

    Local home buyers often specialize in helping homeowners sell quickly and hassle-free. They understand the market in Minneapolis, hence they can offer the best price in the market. Unlike other national corporations, with local buyers, the experience would be more personalized, as they often cover closing costs, leaving you with more money in your pocket.

    The local buyers are also interested in rejuvenating communities, meaning there is an intent to ensure the process is hassle-free and rewarding to both parties.

    Why Choose Minneapolis House Buyers?

    Minneapolis homebuyers are ideal for anyone looking to sell their property fast and without the usual hassle. What sets them apart from others are the following characteristics:

    • No Commissions or Fees: You pay no commission to a real estate agent, no hidden fees, and no closing costs when you sell to a direct home buyer. You get a straightforward, transparent offer with absolutely no strings attached.
    • Sell As-Is: They will take your home off your hands, whether it needs extensive repairs, serious cleaning, or upgrades. No expensive out-of-pocket expenses or prep work will be needed on your part.
    • Fast Closings: We can close in as little as seven days, but we will accommodate whatever timeline fits your schedule. If you are in danger of foreclosure, relocating because of a job, or simply need the cash quickly, this flexibility is priceless.
    • Local Expertise: Working with a local buyer means you’re partnering with someone who knows and cares about the Minneapolis community. Their understanding of the local market ensures you’re getting a fair deal.

    How It Works

    Selling a house to a buyer in Minneapolis is supposed to be easy and stress-free. This is generally what the process looks like:

    1. Contact a Buyer: Call or go online to provide the buyer with basic information about your property, including its location and current condition.
    2. Schedule a Property Visit: A representative will come out and inspect your property, usually within 24-48 hours, to assess its current condition and value.
    3. Get a Fair Cash Offer: Following their inspection of your property, this buyer will provide a no-obligation cash offer based on the current market value and condition of the property.
    4. Close on Your Schedule: Once the offer has been accepted, you are able to work with the buyer to close at a time that best suits your needs. Many sellers appreciate the flexibility this offers.
    5. Get Paid: On the day of closing, get your money hassle-free and with no additional costs or delays. That’s it.

    Additional Tips for Selling Your House

    If you’re exploring multiple options for selling your house, keep these tips in mind:

    • Know Your Home’s Value: Research similar properties in your neighborhood to understand your home’s value in the market. This will help you assess offers and make informed decisions.
    • Watch for Hidden Costs: There may be any amount of fees or costs associated with any method used for selling. Transparency is paramount.
    • Choose the right buyer: Be sure to deal with reputable buyers with good performance reviews, proven to buy a house in Minneapolis.
    • Consider your timeline: If you need to sell quickly, prioritize options like cash buyer offers that can close fast. If you have more time, then you could consider FSBO and other methods.

    Final Thoughts

    Selling your house in Minneapolis doesn’t have to be costly or stressful. You can avoid commissions, hidden fees, and lengthy processes by dealing with cash buyers or local home buyers.

  • Guide to Selling an Inherited Property on Long Island

    Inheriting a property may be a blessing and a challenge all in one. This is because the opportunity to inherit a very valuable real estate presents many responsibilities in regard to taxes, maintenance, and what to do with the house in question. In that regard, if you want to sell an inherited property on Long Island, here is a guide to lead you through the process successfully.

    For assistance with a fast cash sale, click here to learn more about how you can sell your inherited property on Long Island effortlessly.

    Understand Your Inherited Property

    Take stock of what you’ve inherited before making any decisions. This includes:

    Title and ownership: The ownership has to be legally transferred to your name. Ensure the property is legally in your name, and all documents, including wills and death certificates, are available.

    Outstanding debts: Look for any mortgages, liens, or debts against the property. It will present you with a detailed view of the financial obligations attached to the property.

    Condition: The state of the property, any repairs, or renovation that may be in order. Highly consider the services of a professional home inspector, who can uncover most latent defects.

    Zoning and regulations: Determine what zoning laws, property restrictions, or permits affect the property’s use or resale. 

    The better your understanding of these issues, the more sound decisions you can make about selling.

    Evaluate Your Options

    When selling an inherited property, you have several options:

    Sell As-Is

    Selling it as-is means there is no worry of pricey repairs or renovations. It is a fantastic option in the case of an outdated property or a property in bad condition. This keeps you out of a lot of hassle by letting the next owner take over improvements.

    Renovate and Sell

    If the property has a good address and will go for more money with some improvement, then consider strategic renovations. Zero in on high-impact areas: kitchens and bathrooms have a big impact on increasing a home’s market value. Balance the cost and time against the return on your investment.

    Rent the Property

    If not ready to sell, renting out can provide a steady stream of income. This may require some immediate investment in repairs and property management but is worth the effort as a long-term strategy.

    Sell to a Cash Buyer

    Selling to a cash buyer is one of the best options when it comes to speedy, hassle-free selling. Cash buyers don’t mind buying properties in as-is condition, enabling one to sell a home quickly without dealing with repairs. This option would be perfect if you either wish to avoid the traditional home-selling process or seek immediate funds.

    Address Legal and Financial Considerations

    Selling an inherited property involves unique legal and financial aspects, including:

    Probate Process

    First and foremost, make sure the property has gone through probate, if that is necessary. The probate process serves to validate wills; ownership can thereby be legally transferred. If you have property in a trust, you may not have to go through probate, which might accelerate the process. You may want to check with an estate attorney.

    Taxes

    Depending on the house value and sale price, inherited properties could be subject to capital gain tax. Fortunately, there is normally an IRS stepped-up basis where the basis of the property is revalued to the current market value at the date of death. Other applicable taxes include property tax and transfer tax. For specific obligations in your situation and ways of minimizing taxes, it’s best to consult with a tax advisor.

    Multiple Heirs

    If multiple heirs are involved, make sure everyone agrees on the sale. Open communication is key to avoiding disputes. If disagreements arise, consider hiring a mediator or attorney to help resolve conflicts and move forward amicably.

    Debt Resolution

    If the property comes with outstanding debts, such as a mortgage or home equity loan, ensure these are resolved prior to the sale. This may involve paying off the debts directly or negotiating terms with the lender.

    Set the Right Price

    Pricing an inherited property correctly is essential. Factors for consideration include:

    Market conditions: The real estate market on Long Island can be a function of location, appeal, and demand. Research current trends to determine the best time to sell.

    Comparables: Look at similar properties in the area to determine competitive pricing. Online real estate platforms and professional appraisals are very important.

    Property condition: Price for as-is or post-renovation sale. If your property will require a great deal of work, be realistic regarding how this can impact buyer interest.

    Professional appraisal: An appraiser will give an objective view as to what your property is worth. This may help you avoid overpricing or underpricing your home.

    With the help of a real estate professional or cash buyer, you can come up with the best price for your property.

    Market Your Property

    You will want a solid marketing strategy in place if listing the property on the open market. This includes:

    Professional photos: These can create a great first impression and attract more buyers. 

    Online listings: Zillow, Realtor.com, or other major local real estate sites for maximum exposure

    Social media platforms: Facebook and Instagram to reach out to targeted audiences in particular.

    Open houses and showings: Give people the opportunity to view your property in person. Staging a home helps to bring out the most desirable features in it and will make it more attractive to buyers.

    Agent: A real estate agent will help you market your property effectively because he or she knows the Long Island real estate market and will help you find qualified buyers.

    Otherwise, avoid the headache and hassle altogether and sell to a cash buyer directly for speed. Cash buyers handle all marketing and paperwork, so it is a good option to go quick.

    Close the Sale

    Once you’ve found a buyer, work with a real estate attorney to finalize the sale. Ensure all paperwork is in order, including the deed, tax documents, and any required disclosures. Address any final concerns or negotiations to ensure a smooth closing.

    Cash buyers usually expedite the process at closing, while many sales can be completed in days or weeks. Cash sales have fewer contingent problems, thus decreasing the chances of the deal falling through.

    Selling a property that has been passed down in inheritance can be challenging on Long Island, but it can also be an enriching experience when adequately guided. In the case of looking to sell quickly or maximize the value of your property, there is a solution available for you.

  • Top Benefits of Selling Your Milwaukee Home As-Is

    Selling your Milwaukee home might remind you of the major time, effort, and money that you had to invest in repairs or upgrades before listing your house. On the other hand, selling your home ‘as-is‘ presents a smart, headache-free opportunity for many homeowners to sell their homes. This approach does away with costly renovations and lengthens the process of selling, offering convenience and peace of mind to the seller.

    If you’re considering selling your Milwaukee home as-is, learn about the top benefits below. Ready to explore your options? Connect with trusted homebuying professionals here to explore your options.

    Save Time

    Selling as-is can speed up the process considerably. Regular home sales can take upwards of several months, mostly because, where there’s any need for repairs or upgrades, it’s just one of those long processes. By selling it as-is, you are relieving yourself from all that headaches, such as preparing it for the market, doing inspections, and waiting on your buyer’s financing.

    For those facing job relocation, financial difficulties, or other time-sensitive situations, selling as-is can expedite the entire process, providing a quick and efficient solution. You’ll gain valuable time to focus on your next chapter without being bogged down by the traditional real estate process.

    Avoid Costly Repairs

    One of the major selling points of selling your home as-is is not having to pay for repairs and renovations. From fixing a leaky roof to bringing a really outdated kitchen into the new century, all the way down to foundation issues, these repairs can add up fast. In many cases, sellers find themselves investing thousands of dollars into improvements that may not add much value to the home.

    Selling as is means buyers understand that they’re buying the property in its current condition. This rules out financial liability for bringing your home to market standards and makes it easier to sell a property without out-of-pocket expenses. You won’t have to work with contractors, permits, and repair delays that always seem to pop up.

    Sell Even in Difficult Situations

    Life is complicated, and such things as foreclosures, divorce, and inheriting unwanted property can be thrown at you. For these scenarios, selling a home as-is is a cut-and-dried solution. You also won’t have to endure the emotional and logistical nightmare that comes with improving a home you might not want to keep.

    As-is sales are extremely convenient in cases where you are working with a distressed property or even a house that requires major repairs. Many professional homebuyers deal with such properties to ensure that the sale of your house is trouble-free. They understand the various problems you may encounter and offer solutions to help you move forward with your life without added stress.

    Attract Cash Buyers

    Selling your Milwaukee home as-is will often attract cash buyers-for instance, real estate investors who are ready to buy properties straightaway. Cash sales avoid many common roadblocks, such as the need to wait for mortgage approvals or appraisals. This may be most important if you must sell your home quickly because of personal or financial reasons.

    Cash buyers usually speed up the process dramatically, taking just weeks instead of months to close a sale. Fewer contingencies or smoother negotiations are other positive points when you’re working with cash buyers. You’ll avoid last-minute surprises that could ‘upset the apple cart’ of the sale, such as financing falling through or buyers requesting additional repairs.

    Minimal Stress and Hassle

    It can be very stressful to prepare a home for sale in the traditional market, from staging and showings to negotiations with potential buyers. The selling as-is removes much of this hassle and thus makes the process more straightforward.

    Whether one is feeling the pressure of an impending deadline or seeking to avoid the intricacies of a regular sale, selling as-is has become the ultimate convenient and stress-free option.

    Fair Offers for Your Home’s Current Value

    Many people fear selling as-is means accepting a lowball offer. For the most part, professional home-buying companies make you competitive, fair offers based on your home’s current market value. You may not get full retail, but by avoiding a lot of costs like repair, agent fees, etc. you’ll save money.

    Equally, working with a reputable home-buying company provides transparency in every step of the process. The buyers assess the condition of your property and make an offer that directly relates to its value; this way, you can sell your property without surprises.

    Flexibility in Closing

    For many, selling a home in Milwaukee ‘as-is’ is an attractive option because it easily allows flexibility when it comes to closing time. Traditional real estate sales are characterized by inflexible deadlines and multiple parties: agents, buyers, inspectors, and lenders coordinating efforts toward the completion of the transaction. This usually makes it take quite a while, beset with stress and all sorts of vagaries.

    And selling your home as-is gives you control over the timeline. Whether you must close quickly for a compelling financial reason or want time to finalize your next move, most professional home buyers are usually willing to work around your schedule and help you obtain what you need with less pressure.

    As-is buyers understand life situations are different, and their ability to tailor the closing process to your needs can make a world of difference. They remove unnecessary hurdles and delays that help create a direct and stress-free experience for the seller.

    Make the Smart Move Today

    Selling your Milwaukee house as-is can save you a lot of time, money, and headaches. It is perfect for those who would not like to deal with expensive repairs, fight personal issues that are irreconcilable, or simply love the speed and efficiency of having a house sold fast. In selling as-is, you’re not just gaining financial freedom, but you also free yourself to attend to more important matters in your life with peace of mind.

    Explore your options today and see how selling as-is can simplify your journey, offering you a quicker path to move forward while avoiding the complexities of traditional real estate sales.

  • Investing In Airbnb’s: Everything You Need to Know

    Investing in rental properties can be a profitable venture for professional real estate investors and everyday working-class American’s looking to gain financial freedom or save for retirement. With the advent of short-term rentals made popular by sites like Airbnb and VRBO, a new investment opportunity for real estate investors has been born. 

    Investing in Airbnb’s is attractive because of the potentially increased monthly revenue generated by the short-term market rents. In some cases, short-term market rents can be 2-3 times higher than long-term market rents. Hence, the unique opportunity for real estate investors.

    If you’re an active or future investor interested in investing in Airbnb’s, the article will go over the various strategies for investing in Airbnb’s, how to identify profitable Airbnb investment opportunities, what costs should you plan for, and the best markets to look for profitable Airbnb investment opportunities in. 

    Strategies For Investing in Airbnb’s

    There are two main strategies for investing in Airbnb’s: Buy and Rent and Fix and Rent. 

    1. Buy And Rent

    With the Buy and Rent strategy, the investor is buying a turnkey property that is ready to rent. With this strategy, there is no rehab or heavy maintenance to be done on the property. In, theory the investor could purchase the property and then have a rented cash flowing asset the next day. 

    2. Fix and Rent

    With the Fix and Rent strategy, the investor is buying a distressed property to renovate it and then rent it. This strategy is also called the BRRRR investment strategy (Buy, Rehab, Rent, Refinance, Repeat). The advantage of the BRRRR Strategy or the Fix and Rent Strategy, is that investors can recover the initial cash invested upon refinancing with a DSCR loan (more on this later). 

    Both strategies above, end up in the same place: The investor owns a cash flowing real estate asset. The tradeoff is that in the Buy and Rent Strategy you are tying up your initial investment long-term whereas with the Fix and Rent strategy you’ll have to do a considerable amount of construction before recouping your investment upon refinancing.

    How To Assess an Airbnb as An Investment

    The principal used in identifying any profitable rental property is as follows: “The monthly rent of the property should cover the monthly cost to own and operate the property.” This analysis is easier said than done and is dependent on several factors which we’ll discuss below. 

    1. Long-Term or Short-Term Rentals

    The monthly rent of a rental property is largely dependent on whether you plan to hold it is a long-term rental or a short-term rental. If you plan on holding it as a long-term rental, you can estimate the monthly rent using Zillow’s Rental Property Estimator. If you plan on holding your property as a short-term rental, you can use AirDNA’s Rental Property Revenue Calculator. This tool will allow you to estimate the monthly rent you will bring in from listing the property on Airbnb and the tool accounts for anticipated vacancy, seasonal price fluctuations, and operating costs (Maintenance, Property Manager, etc.). 

    2. Operating Costs

    The next factor to consider is operating costs. These costs include Property Taxes, HOA Fees, Insurance, and Property Management Fees. When assessing an investment, you can find the figures for Property Taxes and HOA Fees on the NMLS listing or you can ask your realtor. You can generate an insurance quote from any number of online enabled insurance companies. Finally, for Short-Term Rentals you can assume a property management fee of 10% of the monthly rental revenue. 

    3. Financing Costs

    Most investors chose to borrow to help finance their real estate investments. For Airbnb rental properties, there are a handful of specialty investment property lenders which will finance up to 80% of the property purchase price. Therefore, to ensure your investment is “cash flowing” you must include you monthly mortgage payments into your investment property analysis. You can determine your anticipated monthly mortgage payment by requesting a quote from your lender. 

    With this information in hand, the ratio used to determine if you will have a profitable rental property is called the Debt Service Coverage Ratio (DSCR). The DSCR is calculated as follows:

    DSCR = Monthly Projected Rent / (Monthly Mortgage Payment + Operating Costs)

    If your rental property has a DSCR greater than 1, it means that your property will bring in more monthly rent than it costs to own and operate the property. As an investor, you should only consider properties with a DSCR greater than 1.

    How To Finance an Airbnb Investment

    Depending on whether you’d like to Buy and Rent or Fix and Rent, there are several financing options available to real estate investors. All the financing options include a small equity investment from the Real Estate Investor and a loan (mortgage) collateralized by the property. Both Bank and Non-Bank lenders provide loans on Airbnb’s – we’ll discuss the pros and cons of each in this section. 

    1. Financing For Fix and Rent

    In the Fix and Rent scenario, investors typically leverage two types of loans: a short-term bridge loan and then a DSCR loan.

    In this scenario, investors buy distressed properties that most banks will not finance. So, the first type of loan you’ll need is a short-term bridge loan to buy and renovate the property. Most hard money lenders will provide loans up to 80% of the Purchase + 100% of the rehab funds for first time investors with good credit scores (680+). 

    Then upon completion of the project, a hard money lender will refinance the property with a DSCR loan. DSCR loans are 30 Year Fully amortized loans that are based on the monthly cashflow of the property. DSCR Lenders will provide up to 80% of the appraised as-is value of the property. The requirement here is that the property must be cash flowing (i.e. must have a DSCR > 0). 

    2. Financing For Buy and Rent

    In the Buy and Rent scenario, investors are buying turnkey rental properties. Banks compete more actively in this space because the properties are in good condition at purchase. However, banks provide financing based on an investor’s personal income. So, an investor cannot qualify for long-term financing on a rental property unless they could otherwise afford it.  

    DSCR loans are the main way of financing Buy and Rent Airbnb’s and are based on the properties DSCR not the investor’s personal income. 

    There are several Hard Money and DSCR Lenders that work with investors. Among them, Ridge Street Capital is highly recommended and operates in 35 States across the U.S., including Texas and the surrounding areas. 

    The Best Cities to Invest in Airbnb’s In Texas

    Texas is one of the top states to invest in Airbnb’s because of its several cities well supported by tourism and major business centers. Below we’ve listed the top 2 Texas markets for Airbnb’s.

    1. Austin

    Known for its vibrant culture, tech industry, and year-round events like SXSW, Austin consistently ranks as a top Airbnb market nationally. The cities numerous activities and attraction of business travellers’ results in high occupancy in the downtown and suburban areas of Austin. The city’s rapidly increasing prices have made it difficult to identify economical Airbnb’s opportunities in the most sought-after regions of the city. 

    2. Dallas-Fort Worth

    The DFW metroplex offers a growing Airbnb market, largely driven by a high demand from business travellers. Suburbs like Arlington, with its proximity to AT&T Stadium, are also hotspots for short-term rentals, providing investors with steady income potential.

    Texas’s growing population and robust economy make these cities prime locations for Airbnb investors.

    Getting Started with Airbnb Investing

    Investing in Airbnb properties is an exciting opportunity to generate income and build wealth. Whether you choose the simplicity of a turnkey property or the equity-building potential of the fix-and-rent strategy, success begins with a solid plan. Start by identifying a promising market, running the numbers to ensure profitability, and securing the right financing tailored to your goals. With the right strategy and diligent preparation, your journey into Airbnb investing can unlock a profitable and rewarding future in real estate. 

    Author Bio:

    The author Zach Cohen is the managing partner of the Ridge Street Capital, an investment property lender that finances Airbnb’s across the U.S. on a weekly basis. Zach has originated over $30M of U.S. Real Estate Debt on single family, multi-family, and commercial investment properties. Zach loves working with local real estate investors with ambitious goals of building big investment portfolios. He is hyper-focused on serving the niche of regionally focused real estate investors and dedicates his time to constantly improving the company’s processes to make getting investment property financing more efficient. He is a former Aerospace Engineer and active entrepreneur with core values of integrity and determination.