Re: first property blues - Posted by JPiper
Posted by JPiper on August 20, 1999 at 10:28:17:
It doesn’t appear that you have any magic answers here that will make this situation go away.
What you don’t say in your post is what these remaining repairs are. That’s important. Is the house livable without the repairs? Is the house in a condition where a retail type buyer could obtain a loan on the property? A further important question is what the cost of these repairs is. Without the answer to these questions it’s going to be difficult to answer your question effectively.
However, it would appear that one option (if the house is livable) is to sell it to a retail buyer who is interested in a “deal” and who is willing to make some cosmetic type repairs. If the house is in good enough condition for this buyer to obtain a loan, this “might” work. Another alternative though is to sell the house with some form of owner financing (again if it is livable). This solution does not in and of itself give you your cash back, but it stops the bleeding?.and perhaps after the buyer completes the repairs he can refinance?thus giving you your cash back out.
If the house is not livable?.or if the repairs are too costly and/or complicated for the average retail buyer, you have a problem. One solution to this would be to get a second mortgage on the house. It appears you have sufficient equity to obtain a second. This cash could then be used to complete the repairs. You’re not going to profit when you sell, but the loss won’t be as heavy as the next alternative.
You could sell to a rehabber. The problem with this is that if you were selling to me?I would only be offering in the 30’s?.depending on what exactly the repairs are. This gets you out of the situation, but you experience a heavy loss.
Post the current condition of the house, and what the remaining repairs are together with their cost, and perhaps we can amplify on your options. Either way, your goal at this point should be to recognize you have evaluated this property incorrectly from the outset, and that at this point your goal should be to minimize your losses. Rehabs are NEVER easy, even for the experienced?.and that fact should be kept in the forefront of anyone’s mind as they evaluate a prospective rehab.
Also understand that out of life’s painful experiences there’s always a lesson to learn, which when learned can help to propel you to an even higher level. Try to focus on recognizing the lesson to be learned here?not focus on berating yourself. We all make mistakes. Once you recognize the lesson, learn it, pay the price, and then move forward. It’s just a deal. There’s a better one right around the corner.