We Buy Homes... Pretty Homes... Ugly Homes... 

No Equity Homes...    YOU NAME IT...    WE'VE DONE IT!

Did you know there are at least a 12 Different Ways to Sell Your Property that Realtors won’t tell you about?

We buy Galveston house properties fast for cash for all different purposes including to keep as rental, to resell after making improvements, or to resell with owner financing, a rent-to-own plan, or even to just live in ourselves.

I’d like to talk to you about your options! I'd Like To Buy Your Property!

Our offers can even sometimes be combined with traditional listings using what we call "combo plans" that allow sellers to work with specially trained real estate agents and investors simultaneously to provide property owners with both a plan A and plan B for selling their property.


Quick Cash Sale


The fastest way to sell any home is to sell it to a CASH buyer. This is because the cash buyer does not need to get qualified for a loan or wait for loan documents to be drawn up. Cash buyers can make decisions quickly. Cash buyers can also take care of all closing costs, back payments or taxes, or whatever it takes to get the deal closed. A non-cash buyer typically requires about 30-60 days to close on a home – most of that time is spent waiting for the lender to approve everything. Additionally, lenders require inspections, surveys, an appraisal, and possibly even repairs that cash buyers do not require. A cash buyer can close virtually immediately.

The disadvantage to selling for cash can be the price. Virtually 100% of cash buyers are investors that are buying the home so that it can eventually be resold. This “flipping” of the property means that the cash buyer has certain overhead expenses that must be covered in the transaction.

For example, the cash buyer will have to pay the following expenses:

    • Closing costs on the purchase (2%)
    • Commissions on the resale (6%)
    • Closing costs on the resale (3%)
    • Monthly carrying costs until the home is resold (~4-5% typical)
    • Needed repairs/remodeling ($5-10K to $100K+)

These costs total to ~15% or more of the resale value of the home, which means that cash buyers can only afford to buy the home at 55% to 65% of its full market value in order to make a modest profit.

When you see a sign saying “I Buy Houses For Cash” it means “I’ll pay you about 60% of the homes value, and do it fast”. For some people, such as sellers with lots of equity that need or want money quickly, this is a great deal. For others with little or no equity, or that want to make more money selling the home, this is not an option.

Galveston Home Buyers will buy your home for cash and offer you several other options. Contact us if you would like to explore this further.

















Owner Financing

One of the best ways to sell a home a little faster and for a little more money is to offer the home with owner financing. Owner financing allows a buyer to buy a home by, essentially, paying a monthly mortgage payment to the seller. It’s like rent, except that the buyer is really buying the home and taking full responsibility for maintenance, improvements, taxes, etc.

Selling a home in this way saves the buyer thousands of dollars in financing fees and that savings can be put directly into the buyer’s (or seller’s) pocket.

Homes with low-interest rate mortgages offered with owner financing are also attractive to people that might not be able to get as low of an interest rate on their own or in today’s mortgage market.

Any home (and mortgage) can be offered with owner financing if the right legal arrangements are made.

The disadvantage of selling with owner financing is that the buyer, like any buyer, could default on the loan. In this case, the home becomes the seller’s problem again, and the seller may have to foreclose on the buyer. If you have a fixed low-interest rate mortgage, Hippie Hollow Homes may be able to buy your home through this program orbroker the sale of your home to someone else using the correct legal procedures.

It’s also a great option to explore as part of a “combination plan” to sell your home by marketing it to several buyers simultaneously (including listing it with one of our affiliates). Contact Us if you would like to discuss this further.


Lease Option   


A creative way to lease a home without taking responsibility for maintaining it is to offer it for sale as a Lease Option. A Lease Option is done by essentially leasing a home and selling the tenant an ‘option’ to buy the home at a later date for an agreed upon price.

Typically the tenant pays an option fee (down payment) of 3-5% of the agreed upon sales price and then pays a slightly higher than average monthly rent of which a portion (10-15%) is credited toward the future purchase. The tenant also agrees to pay for all maintenance and repairs (beyond what insurance might cover).

The disadvantage to offering a home for lease-option is that, like leasing, the tenant may stop paying rent, damage the property, and/or never exercise their ‘option’ to buy the property. This happens about 70% of the time, by the way.

It is also important to understand that a lease option is a complicated transaction that is strictly regulated by state laws that restrict how these transactions can be structured. Because of these laws, most investors are no longer selling properties using this technique, and Galveston Home Buyers recommends against selling this way in Texas. If, however, this strategy is ideal for a particular seller, Hippie Hollow Homes can structure a transaction that has the same benefits, but is done in accordance with Texas laws.


Is a lease option legal in Texas?

Yes, but practically speaking, no. Texas Senate Bill 629 regulates how these transactions must be structured. The regulations include requiring notifications and lender agreements that are probably not practical or possible. Failing to structure these transactions legally has penalties so severe to the seller, that it is not likely to be worth attempting.

What are the alternatives to lease option?

Instead of doing a lease option, the owner may choose a different strategy such as selling with owner financing, selling subject-to, or selling with a wrap-around mortgage.



Wrap-Around Mortgage


A creative alternative to leasing may be selling with owner financing, using an instrument called a wrap-around mortgage, or “wrap”.

A wrap is simply a new mortgage that is created that “wraps around” the old mortgage.

Example:

  • Home value: $200,000
  • Existing loan amount: $180,000
  • Existing interest rate: 7.25%, fixed
  • Purchase price to investor: $110,000

The owner can sell the home to a new buyer with the following terms:

  • Sales price: $205,000
  • Down Payment: $10,000
  • New “wrap” mortgage amount: $195,000 (the balance on the new loan)
  • New interest rate: 8.5%

In this example, the homeowner pockets the $10,000 down payment (which helps cover closing costs), and collects the monthly mortgage payment of $1,500 (8.5% on the $195,000 loan), which is used to pay the existing mortgage payment of $1,225 (7.25% on the $180,000 loan) resulting in $275/month in positive cash flow. Note: every deal is different – this is a pretty good one.

Of course the seller must also make provisions for taxes and insurance by creating a new escrow account to account for these expenses. Or they can pass the existing escrow to the end buyer. Or they can simply rely on the end buyer to cover these expenses without an escrow account. Beyond that, several other minor details must be worked out, and it is important that the transaction be structured legally and properly.

The disadvantage to selling with a wrap is that it is always possible that the end buyer will stop making payments, in which case the original seller must foreclose on the property, re-establish possession, make any needed repairs, and resell the property again. Obviously, these activities could incur significant expense. By some estimates, this occurs in 70% of these types of transactions, however, this depends greatly on many factors, and can be structured in ways that make the success rate higher.

Hippie Hollow Homes has extensive experience selling homes with wraps and buying homes with various forms of owner financing. One of our strategies is to list a home for a client and simultaneously offer the home for sale with owner financing (which may attract more buyers faster). If you are interested in this strategy, and others listed on the website, give us a call – we can help!


Subject-To


Another technique to sell a property quickly is to sell the property “Subject-To” the existing financing. This is a variation of owner financing (see wrap-around mortgage), however, in this transaction the seller deeds the property to the buyer, who in turn makes the payments on the loan directly to the lender going forward. After the new buyer purchases the home at the title company, the seller is no longer involved with the property. This is functionally similar to a loan assumption; however, technically, it’s not an assumption, because the seller’s name is still on the loan. Note: virtually no loans in recent years are legally assumable.

Example:

  • Home value: $200,000
  • Existing loan amount: $180,000
  • Cost of sales: $15,000 (typical for this value of home)
  • Sales price: $190,000

Normally, this home would have to be sold for $205,000 or more to pay off the loan and cost of sales. Selling subject-to, enables the owner to sell the home to a buyer for $190,000 with no closing costs other than title insurance and small fees paid by the buyer.

The benefits to selling a home subject-to are that the buyer does not need to qualify for a loan, pay for appraisals, origination fees, or loan applications. These savings make the transaction more affordable.

The disadvantage to selling subject-to is that the loan is technically still in the name of the seller. In other words, if the buyer defaulted on the loan, it would affect the seller’s credit. Therefore, if you are a seller, selling a property subject-to, you will want to make sure the buyer has strong financial credentials, and is buying the property using this technique to save money, and not because they cannot afford a conventional loan.




Loan Modification

Do you need help with your mortgage Loan Modification?

We are experts at negotiating and stopping foreclosure fast!

Our partners at A2Z Real Estate Solutions, Inc. we will work passionatly to correctly restructure your loan by skillfully negotiation with your lender.

We will provide our clients with the following benefits:

~ more afordable payments
~ lowered interest rates
~ save your credit
~ save your home from foreclosure

If you want to keep your home we may be of some help by completing a Loan Modification with your lender. 

Use our professional services and key contacts we have with most lenders to complete a successful Loan Modification.

Most owners do not know what it takes to convince their lender to reduce their payments and principle. We can usually cut them both in half!

~

 $500 to start!

~ 

50% money back guarantee!

If we cant get a successful loan modification we will proceed with buying your home!



Short Sale 

Often the only way to sell a home with little or no equity (and avoid a possible foreclosure) is a short sale. A Short Sale involves an investor (buyer), working with the homeowner to negotiate with the homeowner’s lender. The goal of the negotiations is to postpone a pending auction and negotiate a discounted payoff on the loan (or loans). Using this method, the home can be purchased at a somewhat reduced price and a foreclosure can be avoided.












Example

Standard loan payoff:

Home Value: $200,000
Existing loan payoff: $210,000
Sales price needed to break even: $225,000

This home would have to be sold for approximately $225,000 to cover all loans, taxes, closing costs, commissions, etc. Unfortunately, the home is only worth $200,000, so the homeowner would have to come up with $25K to cover the difference, or give the home up to foreclosure, or SELL IN A SHORT SALE.

Short Sale payoff:

Home Value: $200,000
Negotiated loan payoff: $165,000
Sales price needed to break even: $180,000

After the loan is negotiated, the home can be sold for anywhere from $180,000 to $200,000 with no foreclosure and no additional cost to the homeowner.

The advantage to a short sale is that it may be the ONLY way to sell a home where the loans add up to more than the home is worth. And, it’s the best way to avoid a foreclosure.

The disadvantage to a short sale is that, like everything, it does affect a homeowner’s credit. A short sale is simply better than a bankruptcy and much, much, much better than a foreclosure (the “Atomic Bomb” of credit scars).

Short sales are highly complex negotiations that take significant time, paperwork, and expertise. They are among the most complex transactions in real estate. In addition, it can take from 2-4 months (or more) to negotiate with the seller’s lender.

Galveston Home Buyers and it's partners/affiliates has performed over 500 of these transactions and has achieved a very high success rate from our detailed processes and experience. If this is your best option, Galveston Home Buyers can help.

Forbearance


The best way to keep a home when a homeowner has a temporary financial hardship is a forbearance plan.

A forbearance plan is an agreement made between a lender and the homeowner where the lender allows the homeowner to miss a couple of payments (or forgives a couple of already missed payments) and then requires the homeowner to make up the payments later – in most cases by making payment-and-a-half payments for several months in a row after the missed payments.

The disadvantage to a forbearance plan is that most people are either not eligible for these plans, or those that are, are not able to ever catch up once the payment-and-a-half payments period begin. They just cannot afford the new payments.

Galveston Home Buyers can recommend service providers that can help negotiate these plans for homeowners or Galveston Home Buyers can simply buy the home and solve the problem.


Deed-In-Lieu


The best way to sell a home that is about to be foreclosed on, especially one that you can’t sell through a short-sale, or any other program, is a deed-in-lieu.

A deed-in-lieu involves signing your deed over to your lender in exchange for the lender agreeing not to foreclose on the home. In nearly all cases a lender will ask the homeowner to try to short sale the home before they will accept a deed-in-lieu.

The disadvantage to a deed-in-lieu is that the lender frequently will not offer this option and the homeowner has no control over the timing or terms. A deed-in-lieu may also generate less favorable legal and credit ramifications than other options.

Hippie Hollow Homes recommends that homeowners who are considering a deed-in-lieu first pursue a short sale and then sign a deed-in-lieu only if the short sale is not successful. Hippie Hollow Homes has helped hundreds of people through short sale programs. We can help you too!


Auction


Another fast way to sell a home is through an auction. Typically, the home is put up for auction at a date 2-4 weeks out, with an advertised reserve price set at 70% of fair market value. Then, the auctioneer charges the seller a 5-10% up front marketing and advertising fee. About a month later, they hold the auction – usually it’s a “Closed bid” auction where bids are due by the end of the auction day. During the pre-auction marketing period, several open houses are held in which prospective buyers can look at the home and even order inspections, if they wish to. When the home is actually sold – to the highest bidder over the reserve price – it is sold as-is.

The hope is that several people will be drawn to the home due to its low reserve price, causing a competitive bidding situation when the auction day comes. If this happens, the homeowner may achieve the goal of getting the home sold quickly at a price near the fair market value.

The disadvantage to this strategy is that in a slow market, it’s possible that no one will bid on the home or perhaps only a few people may bid and you may only hit the minimum reserve price – in which case the homeowner could have just sold the home for cash faster and without having to pay for the advertising or put up with the hassles of the auction. If you would like to explore this option further – give us a call!


Equity Partnering


Equity partnering involves selling a home that has equity (when the home is owned outright or is worth more than what is owed on it) to an “investor partner”.  The investor partner then in turn resells the home (possibly as-is or possibly after renovating it) in exchange for agreeing to share some of the profits with the original owner.  This can be a good program for a homeowner that wants to renovate their home, but does not have the cash to do so.

There are many variations to this – only limited by the creativity and experience of the investor partner.

Example of Equity Partnering:

  • Home Value (after repairs): $200,000
  • Renovation/repairs needed: $30,000
  • Total of all loans/taxes owed: $110,000
  • Purchase price to investor: $110,000
    • The investor buys the property, completes the renovation, and resells the property on the retail market to an end buyer.
  • Investor expenses (renovation): $30,000
  • Sales price to end buyer: $200,000
  • Costs of sale (commissions and closing costs): $15,000
  • Total profit: $200,000 – $15,000 – $30,000 – $110,000 = $45,000
  • Profit share paid back to original owner: $15,000 or more (typically 1/3)

Note: depending on the home, location, amount of renovation, etc. an investor may or may not be willing to do equity sharing on a home. Renovating homes is high-risk, and there must be enough profit to justify the transaction.

Other forms of equity partnering involve homes not needing renovation in which the investor partner finds a new buyer that is willing to pay the existing mortgage going forward, and then refinance the home in the future, at which time a profit is shared with the original seller and the investor partner.

All of these transactions are fairly deal specific and fairly complex. Galveston Home Buyers has extensive experience buying and brokering homes using these types of creative financing strategies. Give us a call and we can discuss your specific situation..



House Swapping


The best way to move without having to buy or sell your home on the open market is house swapping. Working with a company that buys and sells many homes occasionally yields an opportunity for two or more homeowners, that want to live in different homes or areas, to trade houses.

House Swapping Example:

  • Home #1 Value: $180,000
  • Home #2 Value: $210,000
  • Homeowner #2 can pay homeowner #1 $30,000 and then both homeowners basically swap deeds for their properties

The disadvantages of house swapping are few, however these transactions are very rare because it’s unusual for two or more people to have exactly what the other party wants.

Galveston Home Buyers buys and sells a high volume of homes and can occasionally broker a home swap in exchange for a fee from one or both homeowners. If successful, this is faster and cheaper than selling using other strategies. Specifically, you can save on Realtor commissions on both sides which in the above example could amount to $10,800 for the $180,000 priced home and another $12,600 for the $210,000 priced home. That’s a total savings of over $23,000.


Listing Your Home


The most proven way to get a full fair market price for your home is by listing your home with a licensed real estate agent.

An agent can market your home through the MLS (multiple listing service) which is where 90% of people go to look for a home to purchase. Agents also have experience in pricing and marketing homes to sell. Of course some agents are much, much better than others, and it’s critical to choose the best one – namely one that has EXTENSIVE experience. Hiring an agent is like buying an insurance policy. When things go wrong (which is common in real estate) having the right one will save thousands or tens of thousands of dollars.

The disadvantage to selling with an agent is the sales commission (6% of the sales price) and the time it takes to sell conventionally. Also, while the home is listed, the homeowner will need to keep paying the mortgage, taxes, insurance, utilities, etc. and keep the home looking good for prospective buyers.

For most people, that have equity in the home, this is still their best option, however, it is only one of many options and strategies available.

We, at Galveston Home Buyers, are not real estate agents. We are investors and utilize strategies that agents will not tell you about. We do, however, have an affiliate Real Estate Brokerage company that can assist you in listing your home for sale. These Realtors® sell our properties for us – they are the best.

When you call us to discuss selling your home, we will always talk to you about listing your home with our Realtor® affiliate, and we will make you additional offers as well. We call this a “combo plan”. If you want one of our offers, great. If you want to list your home with our Realtor®, no problem, you can still take our offer as a back-up, and the Realtor® will agree to let you sell to us at any time, and you won’t have to pay them. We would rather you list your home with one of our agent partners so if something changes and you have to sell we are able to buy your home without worrying about an agent, their fees, and/or lack of knowledge.


Leasing


The best way to hold onto a home long-term without paying the mortgage yourself is to lease it. Its not technically a sale, but can be used instead.

Leasing, also known as renting, involves having a tenant pay a monthly rent that, in most cases, the homeowner uses to pay the monthly mortgage. If the rent is higher than that mortgage the homeowner gets positive cash flow. If the rent is below the mortgage, the homeowner must make up the difference each month.

The disadvantage to leasing is that the tenant may stop making payments, may not make payments on-time, or may trash the house leaving you with a large re-hab bill and no tenant paying the mortgage while you are getting the home ready to be re-leased. Regardless of what the tenant does (or doesn’t do) the homeowner must continue to pay for all necessary maintenance and repairs and pay the mortgage even while the home is vacant between tenants.

In most cases, only homes with a lot of equity (that could easily be sold through many of the programs we offer) are the homes that can generate enough rent to pay the carry costs on a home. Additionally, most people don’t want to be landlords. For these reasons, few homeowners that need to sell end up leasing.

Galveston Home Buyers only recommends leasing as an option to those homeowners that want to hold onto a property long-term and have the financial means to lose money on the property short-term. If leasing is something you are considering, consider hiring full-time property manager. Call us and we’ll put you in touch with one or our reputable and pre-screened affiliates.


Wanna hear more? Rather use our Construction or Property Management Services? Feel free to explore our website and Let Us Know How we Can Help... Call Today>> Talk to Cody - 409-622-3523!