Frequently Asked Questions

Do you have some questions that need answering? You have found the right page! If you don't find an answer here, please give us a call at (602) 595-0620. A member of the Cherrypick Investments team will gladly assist you and answer any questions you may have.

Questions About Selling Your Home

Who usually sells their houses to Cherrypick Investments?

That is a great question!  All kinds of homeowners sell houses to Cherrypick Investments.  They sell their properties for all kinds of reasons, including:

 

  • Relocating to another city or state

  • Facing foreclosure because of delinquent mortgage payments

  • Needing to liquidate assets due to divorce, medical bills, or other cash need

  • Wanting to sell a property inheritance quickly

  • Not having the money or desire to make home repairs

  • Selling a problematic rental property

 

One thing that most of the sellers have in common is that they need to sell quickly to a reputable home buyer who can offer them a fast, hassle-free closing and all cash sale.

What is an "ugly" house?

By "ugly," we don't just mean cosmetically ugly.  We are also referring to homes with serious repair or structural issues, homes that keep people in a bad situation.  "Ugly" homes include:

 

  • Houses in undesirable areas or in high crime areas

  • Houses in areas prone to storm damage, such as flood plains

  • Houses that are no longer convenient for homeowners

  • Houses with bad memories for the homeowner, such as death, tragic experience, or divorce

  • Houses with negative mortgage financing terms or high interest rates

  • Houses with high payments or upside-down mortgage balances

  • Houses that cause any other type of disadvantage to the homeowner

How does the process work when selling your home to Cherrypick Investments?

If you are interested in selling your home to Cherrypick Investments, you will not have to go through a paintstakingly long process.  Here is our home buying process:

 

  1. Call us or fill out our contact form to g ive us some simple information about your home

  2. We'll have a team member immediately schedule a visit to your home

  3. Our team member will visit your home, explain the process of selling your home, answer all of your questions, and evaluate your home's condition.  They will then make a fair, no-obligation offer to purchase your home for cash.  Accepting the offer is completely up to you.

  4. If you accept the offer, we will set up a closing within seven days.  We'll pay cash for your home, pay all normal closing costs, and you will get out of your ugly home fast!  That's it!

Can I expect a market value offer for my home?

Cherrypick Investments will consider the condition of your home before making a fair offer to pay in cash.  In determining the offer, we will discount from the estimated retail value after it's fully renovated.  This means that we will buy your home, but at a price that is below market value due to the necessary repairs, renovation, and other factors.  We buy homes for cash in order to renovate them and resell for a profit.

 

That being said, you will enjoy the conveniences of an all cahs closing when selling your home with Cherrypick Investments.  You will not have to deal with any mortgage approval hassles, you won't have to pay any closing costs, and you won't have to make any repairs to your home.  Close as quickly as within seven days of receiving a cash offer, and you're out of your ugly house for good!

How is the offer price determined?

Cherrypick Investments considers various factors when determining a cash offer.  These factors include:

 

  • Condition of your home

  • Repairs needed to resell your home

  • The time it will take to finish these repairs

  • Value of your home compared to similar homes in the area

  • Real estate commission required when reselling your home

  • Maintenance costs, such as taxes, payments, insurance, utilities, homeowners dues, etc.

Does Cherrypick Investments buy condos and townhomes?

Yes!  We buy all kinds of homes, including:

 

  • Single family homes

  • Duplexes

  • Apartment buildings

  • Townhomes

  • Condos

  • Some commercial properties

Do you buy mobile homes?

No.  We are unable to purchase any kind of mobile home.

Do I have to pay a fee in order for Cherrypick Investments to buy my home?

No.  You never have to pay anything!  Our offers are all cash, no obligation, and they are made at no cost to you.

Do I have to sell to Cherrypick Investments if I contact you for an offer?

No.  You are never obligated to sell to us when we make an offer.  You may choose to accept or not to accept.  It is completely in your hands.

Questions About Buying a Home

Why should I buy a house instead of renting?

When you are renting a home, you are paying the landlord for a service.  The service is the landlord giving you a home in which to live, and keeping that home in good condition.  When you move out of the rental home, you are leaving that home behind . . . and all of the money you put into the rent!

 

On the flip side, when you buy a home, you get to keep that house.  You are still making monthly payments on the home, but you are not losing that money.  Instead, you are building equity.  Another benefit of buying a home is that you may be able to deduct the cost of your mortgage loan interest and proerty taxes from your federal income taxes.

What kind of houses does Cherrypick Investments sell?

The houses that we sell are typically pre-owned homes in desirable communities.  Many of the homes we are selling were in need of repairs and renovations when Cherrypick Investments purchased them, but we have put a lot of work into turning them beautiful homes.  Not looking for a move-in ready home?  No problem!  We also sell fixer-uppers.

How much can I afford to spend on a home?

The answer to this questions is different for different people.  To get an idea of how much money you have to work with, you need to look at your income and your debt.  A general rule is to keep the cost of your home from 1 to 2 times your annual income.

 

When going through a mortgage preapproval process, the lender checks to make sure your monthly debt payemnts do not exceed 40% of your gross monthly income.  In general, your monthly mortgage payment should not exceed 28% of your gross monthly income.

How much money will I have to come up with to buy a house?

Generally, when purchasing a house you will have to pay the following costs up front:

 

  • Deposit made when you make an offer on the house

  • Down payment

  • Closing costs

What expenses are included in a mortgage payment?

A mortgage payment is made up of four costs, sometimes referred to as PITI:

 

  • Principal

  • Interest

  • Taxes

  • Insurance

 

This means that your monthly mortgage payment will include a portion of your principal loan balance and interest on the loan, 1/12 of the annual property taxes, and your monthly homeowner's insurance premium.

 

But, don't forget about the other monthly expenses that you will have to pay when purchasing a new home.  These expenses can include utilities and homeowner's association fees.

Once I find a house to buy, how quickly should I expect to move?

Generally, you should plan to move out of your existing home about 45 days after you sign your new purchase contract.  While we usually close very quickly, we suggest planning on 45 days.  If you are currently a renter, your landlord will most likely require 30 days' written notice of moving out.

 

 

Questions About Investing in Real Estate

How much money do I need to get started in real estate investing?

Lenders typically require 10% of the purchse price of your prospective investment property as a down payment, plus closing costs.  You also need funds to cover renovation and repair costs, utilities, insurance, taxes, and other fees during your holding period.  A Cherrypick Investments team member will be happy to guide you to a specific amount of money.

How do I find investment properties?

Skip the tedious process of finding discount properties!  A Cherrypick Investments team member will gladly guide you through the investment process.  We will help you find the best opportunities to act on as a first-time investor!

How do I determine if the price of a potential investment property is fair?

Cherrypick Investments can help you find the prices of similar properties in your market.  We will help you find the correct data that will tell you whether the asking price is fair or not.

 

Don't forget about your natural intuition and your eyes, though!  Take a drive through the neighborhood and take note of how homes are maintained, landscaped, and the number of homes for sale or rent.  This will give you insight into what a fair price for the prospective house is in that market.

I don't want to do the renovations myself. What do I do?

Cherrypick Investments will point you in the direction of qualified, trustworthy contractors who can help you with your renovations.  Another option is to purchase an already renovated property and rent it out.

Can you help me find financing?

Yes!  Give us a call to set up an appointment with a Cherrypick Investments team member.  We will help you find a lender that will fit your financial needs.

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