Re: Help! I have negative cash flow. - Posted by Jim FL
Posted by Jim FL on October 21, 2002 at 01:08:16:
Ron,
First, I would not try to go around the agent or hide anything. I just don’t beleive in pulling the wool over the eyes of anyone, not good business. (And I’m not implying you would do that.)
If the TRUE value of the property is less than the listed price, I’d guess the agent has dropped the ball.
So, instead of trying to sell the house yourself with a L/O or contract sale, figure out some things first.
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You have a balloon payment coming up, so if you L/O it, or sell on contract, you NEED to take care of the balloon payment.
It is not realistic to expect a T/B’er or contract buyer to get financing within 6 months.
So, get that the financing on the house to be longer term.
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Is there a market for rent to own, or seller financing in this area?
If so, will you be able to structure terms for a buyer that will cover your expenses, create some cashflow, and produce some cash now?
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How to cancel the listing?
This is something you will need to read the listing agreement and talk to the agent or their broker about.
Frankly, if I wanted to get out of a listing agreement, for the reasons you are needing to, then be honest.
Talk to the agent first, and if they will not play ball, talk to the agents broker.
Tell them you are not happy with the service you are getting, the house has not sold, and is hurting you to hold it vacant.
So, you want and need to get out of the listing.
You do not have a buyer waiting in the wings, so you are not trying to get out of paying commission.
You are thinking of what you can do to move the house, or to hold it without further financial pain, and perhaps might just rent it, and attempt to sell it later.
Heck, the agent or broker might present you with some other options.
You are in the house for less than your asking price, so you do have some room to work with, but not much.
Bottom line, you are not happy with the service, so you can always DEMAND the listing be cancelled.
Trust me, if you make it clear you are not happy, they will let you out.
You certainly have the ability, not that you would do this, to make the listing agents job of selling the house difficult, if you wanted to, and they know that.
When/if you get the listing cancelled, you should work on getting the place refied to some long term financing, and market the house for sale at the same time.
Get aggressive!
Create signs for the yard, windows of the house, flyers to place everywhere, fax the flyers to local mortgage brokers, directional signs, ads in the paper, and signs around town about the house.
Basically get the fact that the house is for sale with terms out there to as many people as you can, and calls will follow.
You could even consider seller financing it, and selling the note.
This would require you to get buyers with better credit and a decent downpayment, but you can get it done if you push hard.
Plenty of options available, but again, the financing issue needs to be taken care of first, in my opinion.
And remember, you have a TON of people here on this board and others who you can brainstorm with.
Good luck,
Jim FL