The third of the five offers we make is called the price lift offer. So, what exactly is this?
In certain situations, sellers can’t accept cash or cash plus offers because it doesn’t take care of their financial needs. With a price lift offer, we establish a partnership between ourselves and the seller.
We will basically come in as a partner to rehab the property and then sell it on the open market.
All the profit is then split between us and the seller.
For more details and information, you can visit our website at:
https://www.effortlesshomebuyers.com/
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
Find out more at
https://www.TheStorageStud.com
https://titanwealthgroup.com/
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https://thestoragestud.podbean.com/e/effortless-home-buyers-what-is-a-price-lift-offer/
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Now we're moving on to the third of the five offers that we make to our sellers, which is called the Price Lift Offer.
So in certain situations, the sellers are unable to accept our Cash or a Cash Plus Offer because it just doesn't take care of their financial needs, maybe their mortgage is higher than our offer and they don't want to pursue a short sale of any kind. This is when we decide to use the Price Lift Offer. How the Price Lift works? This is actually a partnership between the seller and our company. What we end up doing is we'll come into a partnership. We will go ahead and rehab the property as your partner, we will pay all the funds to rehab that property and then sell it on the open market to a homeowner. So how that works is then we split all the profit.
So how the profit is aligned or how it's affixed to the seller and to us is first, the offer that we make to the seller all those proceeds will first come out and go to pay off any type of mortgage there is on the property. Then, the next set of funds go out to pay the difference between the mortgage and what we initially offered the seller on our Cash Plus Offer. Then after that additional funds go out to pay for the construction, then go to pay for the holding cost and then finally to pay for the selling costs. And at the end of all of those costs being deducted, then there's profit left over that profit is split 50/50 between the seller and Effortless Home Buyers to allow you to walk away with more cash in your pocket than the Cash or the Cash Plus Offer.
Now with the Price Lift Offer, the timeline is not as fast. So instead of taking 30, 45 or 60 days to close, it may take up to 6 or 9 months. And the reason why is we have to close on the property, we have to then go ahead and start the rehab process, which depending on the severity of the repairs needed, it could be anywhere from 2 weeks, all the way up to 6 months. And then at that point, then we need time to market the property, we'll stage it, we'll take photos, we'll put it on the MLS and then we'll start marketing for a homeowner that wants to live in that property. Then once the homeowner says, yes, I want to buy this property. They go under contract with us and then it might take another 30 to 45 days for their lender to approve the deal and close. So all in all the Price Lift process may take anywhere between the 6 to 9 months, but we'll put substantial more cash in your pocket than say, the Cash or the Cash Plus Offer.
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