HELP!!! Newbie Can't Sell Houses!!! - Posted by Rek (MO)

Posted by ak on November 16, 2000 at 11:42:53:

Why not become the bank? Sell the houses to people that you qualify yourself. Do a simple credit check, see why there credit is shot and then sell them equitable title to the home (keeping legal title for yourself) for a small downpayment and and enough money per month to cover the spread on loans that you have if any. If there is no loan on the property then simply create a cashflow situation for yourself. You need to look at the market you are in right now. Are the homes selling for a profit? No then look at getting someone into your homes that may not be able to qualify for a traditional bank loan. The way that I see it, it is a win-win situation. You are not the landlord, you simply hold legal title to the home and they hold the equitable title to the home so they are the ones that are going to be responsible for the home not you, and they get the pride of ownership and tax benefits. By retaining legal title to the home you avoid the potential due on sale clause that a bank may hold to the property.

HELP!!! Newbie Can’t Sell Houses!!! - Posted by Rek (MO)

Posted by Rek (MO) on November 15, 2000 at 17:01:52:

Here’s my problem,
Before ever even considering financing houses myself, I purchased several foreclosures at a large discount off of retail price. I have 5 in my inventory right now. All are listed with real estate agents and have so far generated only a fair number of calls. I have 2 under contract right now, but they have been on the market for approx 6 months. The others are in slow selling small communities and range in price from 19,000 to $55,000. The problem I am having is finding qualified buyers in that price range. Either they don’t have the cash to put down, or they have bad credit. I feel that I have made some excellent buys and would like to take full advantage of them. Am I a complete moron for listing these with an agent and trying to cash out? Does anyone have any suggestions as to what they would do with them?



Re: HELP!!! Newbie Can’t Sell Houses!!! - Posted by JohnBoy

Posted by JohnBoy on November 15, 2000 at 19:09:13:

Owner finance them. If you need to get some cash out of them, refinance them yourself once you get a tenant/buyer in it. Or you can get some cash down from one of the buyers that have bad credit, possibly carry back a small second (if needed) depending on how much you get down from your buyer and get them a new first to get some of your cash out. Even people with bad credit can get a first mortgage if they have enough down and/or a combination of their down with a seller carry back. Get with a GOOD mortgage broker that can help you with getting your buyer financed. Maybe a 70% LTV would get them qualified if that would work for you. Then you carry back a second for the difference minus what they can put down.