When thinking about liquidating assets and property, there are a lot of moving pieces and complicated processes that can trip up even the most seasoned real estate veteran. It’s a process that befuddles many property owners, so you shouldn’t feel bad if you think you’re getting in over your head. So let’s take a moment to dive into property liquidation in a way that’s easy to understand. We also want to make sure we move quickly as time is of the essence when it comes to the liquidation of assets. Here’s how liquidating assets in Milwaukee works…
What You Need To Know About Liquidating Assets
Why Liquidate Property?
A person will often choose to liquidate property or possessions in order to pay off outstanding debt, in order to turn their assets into cash, or in order to reallocate funds in order to pay for something. Some common examples include liquidating a boat in order to free up cash to pay for a child’s college tuition or selling a second house in order to take more vacations. Or some people would simply rather have their money be liquid than tied up in assets or property. Whatever the reason, liquidating property in Milwaukee usually is a means to an end.
When a person starts to rack up debts and needs to find the money to satisfy those debts, they can often look to the assets and property they own as things that can be made liquid in order to pay them off. By converting a property into cash, you can then use that cash to settle an outstanding loan, pay off a lien, or pay for something that you’ve had your eye on. Liquidating property opens up your options.
Why Is it Called Liquidating?
While the concept is clear, it might not make total sense at first what the term “liquidating” means, exactly. When your money is “liquid” that means it’s easy for you to move around or use. It’s fluid, so to speak. When you purchase property, the money you use becomes the value of that static property and is therefore no longer liquid. It takes time to transfer that property into cash, therefore making it liquid again. So to liquidate something is to turn an asset into easily accessible money.
Why Would Someone Need to Liquidate Property?
We mentioned a few examples but let’s talk about some specific instances when liquidating your property in Milwaukee might sound like a good idea.
The first reason someone might want to liquidate property is to reduce their debts. They might have debt mounting up and need to get back out of the red. They might be in pre-foreclosure on a house and want to make their payments to get squared with the lender. They might be dealing with damage in their house or disrepair and need extra funds to fix everything.
Another reason to liquidate property would be to simply boost their emergency savings. Recent events have shown why it’s never a bad idea to have rainy day savings handy and instead of tying up your money in a house or land you aren’t using much, you could turn it back into cash and put it away for when you need it.
If you’re dealing with bankruptcy, that’s usually considering a good time to liquidate assets as you can use the money you get to pay off your debts quickly before things get worse. In this instance, a court-appointed trustee would likely determine what can be sold. Also, depending on what you owe on the property, a trustee might decide not to liquidate it or to liquidate it entirely. The good news is that bankruptcy laws prevent them from leaving you with nothing.
You might have a legal judgment against you and need to come up with the money to pay it fast. Special circumstances like that don’t always come when you have savings handy so by liquidating property you’re able to convert it into a way out of your legal woes.
If you’re dealing with alimony, child support, or any other ongoing legal or financial concern, liquidating assets and property frees up the cash needed to ensure you don’t miss any critical payments. Sure, it might not feel like the thing you expected to do with the property, but if liquidating it in order to satisfy your financial obligations and ensure the people in your life are taken care of, it’s very understandable.
Does Liquidating Property Mean I Have to Sell Everything In it?
There are two general types of liquidation: real estate and personal. Both of these versions involve liquidating assets, but you’re talking about two very different types. Real estate liquidation involves houses, land, and real estate property. These are the structures and pieces of property that can be sold to a real estate investor or another buyer for cash.
Personal property is separate from this kind of liquidation. So if you liquidated your house by selling it for cash, you still own all of the personal belongings inside. Those are separate entities that the buyer isn’t interested in. Of course, if you decided to sell those items in an estate sale or auction, then you are pursuing a personal liquidation, which is also possible. But just because you do one does not mean you have to do the other.
What Is the Downside to Liquidating Property?
Turning your property into cash when you need it is a good thing, but are there concerns? Perhaps the big concern for anyone, but especially someone who has never liquidated assets in Milwaukee before, is that the process of liquidating property can be slow, confusing, and disappointing if done improperly.
For example, let’s say you decided to cash out a life insurance policy in order to get the money fast. It’s possible that doing so will prevent you from buying another policy down the line, which is something you might want to do. There are also tax consequences to consider in that situation as well as penalties on early withdrawals. These are just some of the things to be aware of when liquidating anything.
Liquidate Your Property As-Is
If you do plan to liquidate your property in Milwaukee, you’re going to want to find people to work with who understand the process, have done it before, and know how to make it smooth and painless. And you especially want to work with people who will turn your property into cash fast. Cream City Home Buyers can absolutely help you through this process safely, expertly, and pay you in cash right away for your house, land, or property.
All you need to do is contact us with details about your house or property in the Milwaukee, Wisconsin area that you intend to liquidate. We’ll assess the property and perhaps even take a tour. Then we’ll make you a fair offer and pay you in cash if you decide to accept it. If you approve, you set the conditions of closing, often within a few days. You won’t need to make any repairs or clean up. You can walk away from the house with cash in your hand and you’ll have completed the liquidation process easily and fast.
