How should you sell real estate? What entity will give you the best of tax benefits? How can you limit the liability? There are common questions posed by every experienced and beginner real estate investors alike.

Before your potential new buyers can deal with moving house and their relocation you will need to know a few things. The following answers will give you something to work with to make the best of profits and limiting liability in real estate investing:

How should you take the title?

The first and most common mistake you can make as an investor is to take the title in your own name. Since all deeds are a matter of public record they will be available for all prying eyes to see. Having property in your name will mean you will be always available to attorneys, creditors, and tenants. If any liability is created on the property, then you will be liable.

Whether you plan on selling multifamily, office or any other type of investment property consider what kind of documentation is helpful when you maximize your price in the marketplace. Before you begin you will need to ask yourself one simple question: What is a buyer looking for in a potential purchase? The buyer will pass through the following thought processes:

• Are the rents at maximum levels according to market values?
• What is the stabilized vacancy loss and income in the past three years?
• What are the stabilized three years of expenses?
• Is there a deferred maintenance?
• What capital improvements have been made recently?

Being coherent about the reasons as well as having reasonable data to back up your claims will make reeling the highest offers a lot easier in the long run. You need to have capital improvements out of the expenses as the one time major cash items will be mixed with the expenses, which will really undermine your net operating income. For the most part this is what the buyer is expecting to purchase from you apart from the property itself. With the right approach you will have a much easier time getting better offers.

Buyers will often look for a specific rate of return

Lenders will need to hire an appraiser to find the necessary rate of return. The cap rates will vary around 5.5 and 8%, depending on how your market is doing at this time. To solve this and to figure out the rate you will need to work on dividing your operating income with the value that is offered. It is quite important to ensure your operating income will not include the mortgage interest as well. The higher your overall net income, the higher your price will be. The process of selling will involve communication and figuring out what the potential of your property may be at this time. Once that is done your clients will handle moving house and their relocation, moving company or using other ways.