Why you shouldn’t pay cash for your turnkey rental

by | Jul 13, 2020 | Uncategorized

Everyone loves a cash buyer! at least this is what the popular perception is. If you meet a home seller then this perception would further get solidified. For homeowners, seeking to sell their homes, getting a cash buyer is their favourite fantasy coming true. A cash buyer brings greater credibility and the promise of a quick closing to a transaction as there are no uncertainties involved as compared with getting the finance. With finance, there are lengthy and time taking processes involved in getting the loan approved and at the end there is no certainty that the loan would get approved.

Cash buyers who have not acquired the mindset of a smart investor usually save money or take lumpsum amount from their retirement fund to invest in a property, thinking that they have saved themselves from the complicated financing process and that their offer would get top priority over all the other offers. While this holds true in case of a home seller but a turnkey rental for sale is a different ballgame all together.

Turnkey rental companies are not particularly concerned with selling the property quickly because they will get their money eventually. For them be it a cash buyer or somebody who is getting finance, they are on equal pedestal. They are in the business to get the best deal and for that they are willing to wait.

In such cases, buyers with substantial liquid cash in hand must think of spending the money with an investor mindset. If they finance the property, all they must pay for is down payment and closing costs and monthly instalments will be paid by the tenants. This way, cash buyers will still have lots of money left after buying a turnkey rental for sale.

Real estate investing is all about looking at the return on investment after all the necessary expenditure like down payment, closing costs, property management fee, insurance, and interest. With American Made Home Solution’s turnkey rental on sale, you can easily get returns of 15-16%, which is considered outstanding in the real estate investing.

All the aspiring cash buyers, if they are thinking about investing on a turnkey rental for sale, can do well by getting some smart investing advice from American Made Home Solutions and can actually invest on more properties and earn a lot more with their cash in hand.