So your fix-and-flip has flopped, and now you're stuck with a revamped property, no buyers, and a costly loan payment that's draining you dry. You're not alone. Many investors have been right where you are, and I promise: It's not the end of your business. In fact, you might still be able to make a hefty profit on that home with the right strategy.
Are you having a hard time finding a buyer for your investment property? Here are eight things you can do to help.
1. Improve your marketing
Your first option is to up your marketing game. Enlist a videographer and market the property on Instagram, improve your listing description, or invest in staging and retake your listing photos. These are all great ways to increase exposure for your property as well as make more of an impact when you do.
2. Change your agent (or get one)
If you already have a listing agent, it might be time to consider a change. Who you have is either not well-versed in marketing or not putting in the work. Either way, talk to other area investors about agents they've used, and consider switching -- as long as your contract allows you to.
If you don't have an agent yet, think about getting one. A real estate agent will have a good pulse on local buyers (and their preferences) and should have a wide network of other agents and brokers to pull from as well.
3. Contact a wholesaler
Selling to a wholesaler can have some big benefits: They typically pay in cash, there's no lender to deal with, and you don't have to pay commission (unless you have an agent of your own). You might have to cut your price down a bit to make it happen, but if it's a good property in a decent location, there's probably a wholesaler willing to make a deal.
4. Offer seller financing
If you really want someone to bite, offering owner financing can be the way to do it. Buyers don't have to jump through all the hoops that come with mortgage financing, and you open yourself up to buyers who wouldn't otherwise be eligible to buy a home (lower credit score, no down payment, etc.)
5. Improve the property
Maybe the problem is the property itself. Take some time to compare it to others in the neighborhood. Are there features it's lacking? How does its curb appeal measure up? Ask your agent to run some comps and see if anything stands out. If you find major discrepancies, a few careful upgrades could make all the difference.
6. Lower your price
If there's interest in the area but not in your property, take a step back and make sure your price is in line with other comparable properties in the area. What have neighboring homes been selling for lately? Are you aligned with them? Sometimes, lowering your price just a few thousand dollars can make all the difference.
7. Sell to an iBuyer
Depending on what market you're in, iBuyer companies like Opendoor, Offerpad, and Zillow Offers (NASDAQ: Z) (NASDAQ: ZG) may be willing to buy your home without so much as a home inspection. You might have to take a price cut for the deal to work, but it could help you cut your losses and move on to your next investment quickly.
Your last option: Stop trying to sell your property and rent it out instead. That might mean renting it out to long-term tenants or just renting it occasionally on platforms like Airbnb or VRBO. In some cases, selling your current property and living in your investment may be the best option (if your current home is more marketable than your investment property).
The bottom line
Finding a buyer isn't always easy. If you're having a hard time, take a step back and analyze your marketing efforts, consider bringing in a new agent, and think about new ways to sell and price your property. If those strategies don't work, renting it out may be your best bet.