Nov, 2023

Preparing to Sell Rental Property – Full Cycle Sale Tips

Time to Sell Your Rental Property? Make sure you have all of your ducks in a row! Ready to cash in? Rob has all the tips on preparing to sell rental property! You’ve bought, sold, and renovated your multifamily investment. Go through this checklist to make sure you are prepared to sell it!

Preparing to Sell Rental Property When It’s Time For the Sale

Rob starts out by explaining the full cycle of real estate, which is “buy-fix-sell”. The final step, of course, is selling your property. Here are some tips to get you ready for that sale:

When you are preparing to sell rental property, you must understand that it has been an ongoing process since you acquired it. The entire time you own a multifamily dwelling, you are continually repairing and upgrading it.
Gather any and all documents you will need for prospective buyers. The more information they can easily access about your property, the better. Keep all of these documents online in Dropbox or Google Drive.
Interview the selling broker. Make sure you vet them properly.
Negotiate the broker contract. A good contract benefits both sides.
Review and qualify potential buyers’ offers. The broker may provide you a spreadsheet so you can see each buyer’s qualifications.
Select the buyer. Offers will soon roll in. It’s up to you to choose the right one.
Open Escrow. This process will pave the way for the last steps in the selling process.
Manage all the buyers’ requests while Escrow is opening up. They will be looking for your title agreement, income reports, and more to make sure everything is kosher. Again, you should have digital copies online for them to review.
Maintain occupancy and collections during Escrow. If your buyer is applying for a federal loan, you must keep occupancy at 90% minimum for 90 days. Otherwise, you will need to file for an extension. Your deal will fall through if you can’t get one.

Join Our Community

Do you own multifamily properties? Do you aspire to build wealth? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Oct, 2023

506B or 506C Syndication – Regulation D Investing

506B or 506C Syndication? Multifamily investor Rob Rowsell explains the differences between these two types of Regulation D investing plans.

Regulation D Investing Plans – What is the Difference?

Rob jumps in to explain the difference between Regulation D Investing Plans. Is a 506B or 506C syndication plan right for you? Read on.

506B Investment Plans

Real estate industry pros refer to the Reg D syndication deal 506B as the “Friends and Family” plan. If you seek out this deal, the main rule is that you must have a preexisting relationship with your investment partners. Before signing the PSA, you must provide proof that you know them. You also may not solicit investors publicly for these properties. This includes online advertising, print ads, and in person public appeals through your local chamber of commerce or other forum.

506C Investment Plans

Regulation D investing plans classified as 506C are for accredited investors only. This means you must have a net worth of at least one million dollars. That net worth excludes your personal residence. You can also qualify if you have earned over $200,000 in the previous year as a single, or $300,000 as a married couple. Financial institutions also need confidence that you will earn that same amount in the following year in order to approve your plan. If you are approved for a 506C investment plan, you are free to advertise your deal to other investors publicly.

Join Our Community

Do you own multifamily properties? Do you aspire to one day? Then you should consider joining our online discussion group, the ATL Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!