By now, most of us have seen the advertisements, or heard about the option of selling your home for cash. As a seller, especially if you’re looking to sell quickly and avoid the hassles that go along with a traditional home sale, you might be wondering whether or not there’s a “catch” when it comes to cash sales. Is it as simple as it sounds? What kind of documentation is required? Are there any downsides to selling for cash?
We caught up with real estate expert Charlie Einsmann, one of Clear Sky’s owners, to find out just how cash sales work and what you, as a seller, need to know. Einsmann and his partner, Sam Jacknin, started purchasing homes for cash in 2004, and founded Clear Sky Properties, LLC in 2005. “Cash for us is the same thing as purchasing homes using a combination of cash, equity lines of credit and broker lines of credit, which are backed by substantial assets,” says Einsmann, “so purchasing a home for cash is really just purchasing a home without needing the bank’s money.”
Both owners have more than 20 years’ experience in real estate, with Einsmann starting out as a traditional realtor before branching out to other parts of the industry. “We started out purchasing a fix/flip in 2004, and have been investing in similar properties ever since,” he says. “We’ve also kept some of the properties rather than flipping them, and have used those to build a large rental portfolio.”
The duo has gone on to build up a thriving real estate business, not only purchasing homes for cash, but also helping other investors finance properties. They also recently jumped into the world of podcasting with their series, “Basement Tales”, which provides tips on real estate investing.
With so much experience and expertise, it makes sense that Clear Sky Properties has all the information you need to decide whether or not selling your house for cash is the way to go. Here’s a breakdown of all the pertinent information we took away from our Q & A with Einsmann:
What are some of the requirements or documentation a seller will need in order to have Clear Sky Properties purchase their home?
The only thing we need is proof of ownership and information on how much is owed on the house. We have a simple three-page sales contract, and we take care of the rest of the paperwork needed to close.
How long does the process take?
We can complete the sale in as little as two days. It might occasionally take longer if the title company has to wait for final payoff information for any loans or liens on the property, but we can still close in two days and escrow the payoffs if the sale is urgent.
Do you require inspections or appraisals?
There are never any inspections or appraisals. We purchase your home as an “as-is/where-is” sale.
Is there ever a situation where you aren’t able to purchase a home, or a reason you might be unable to work with a particular seller?
The only situation where we wouldn’t be able to purchase a home is if the total amount owed on the home far exceeds the purchase price. However, if the amount owed vs. sales price is negligible, we simply pay that additional amount as well.
There is never a reason we can’t work with a seller, but it is important that we verify who the seller or sellers are, and we will need to be made aware if there is more than one seller. There might also be a situation in which a seller is incapacitated, in which case we can help facilitate a guardian ad litem to help with the sale.
What are just a few of the positives when a homeowner opts to sell their home for cash? Any negatives?
I can’t think of any negatives, but there are definitely a lot of positives when you sell your house for cash. It is the quickest way to sell and is only dependent on the title company, as opposed to finding qualified buyers, having people traipse through your house, and dealing with a mortgage lender. There are also no contingencies like appraisals or inspections. We’ve been able to purchase homes in less than 24 hours, making for a quick and seamless transaction.
With such a simple, easy process, it makes sense that many sellers are choosing to sell their home for cash. The experience and know-how behind Clear Sky Properties makes the process even easier, and as a seller, you can feel confident that no matter the condition of your home or the circumstances of the sale, you’ll have your house sold and cash in hand in no time!