Posted by Dan on December 28, 2004 at 20:25:28:
The lease option model should help you increase your monthly spread. Offer 100% rent credits and adjust your price accordingly to cover the lost money from the credits. I only use this method, I do not straight rent. In my area this method brings me an additional $200-300 per month. P.S. Only about 10-20% of tenant buyers actually exercise their option to purchase. Good luck.
Avoid Bankruptcy - Posted by Lee
Posted by Lee on December 28, 2004 at 10:09:45:
Hello, I hope someone on this forum can give me some advice. I own a few small rental houses, we’ve had many unexpected repairs and financial hardships this year. As a result our cash reserves are gone ($70,000 in 10 months), our occupancy is at 80%(slow market and bad time of year). If we are at 100% occupancy we just barely break even, we have little to no equity and average credit (640 - 670). I do have a business plan to get us back on track, it involves selling certain money losing ventures, rebuilding our reserves, and infusions of owner capital as permited (I est. six months before I can start putting money back into this business due to other expenses). What I need right now is a short term lender to get us through the next six months. Any suggestions are appreciated.
Re: Avoid Bankruptcy - Posted by Ed Garcia
Posted by Ed Garcia on December 28, 2004 at 11:13:33:
Lee,
We need more info.
Such as, where you?re located?
Interest rates on existing properties that may be refinanced at a lower rate?
How long have you owned various properties?
I can tell you my first move would be to put everything up for sale, to see what kind of action I get. I have a feeling from your post that your sales market is just as slow as your rental market.
If you like you can call me at (909) 944-0199 and after asking you a few questions I might be able to give you a little direction.
Ed Garcia
Re: Avoid Bankruptcy - Posted by Matt G
Posted by Matt G on December 28, 2004 at 10:43:12:
Lee-
have you considered selling to raise capital? I would strongly suggest selling to keep from going Bk.Sell with lease option. they will make you sell anyway if you file BK. wish I had better advice.
Been there done that