Posted by rc on November 05, 2006 at 14:17:47:
fwiw
What to do in a soft market? House ain’t movin - Posted by Redd
Posted by Redd on November 02, 2006 at 21:07:18:
I know this is very common amongst us investors but I don’t know what to do.
I have a 2-fam on the market. I remodeled 1 of the apts and painted the exterior. The other apt was occupied when I bought it. The tenants are paying below market rent and the apt could use $4K in cosmetics.
I’ve run out of money and can not afford to fix-up the occupied apt. Some say, throw them out and fix it. I’d do it but the little I get from them helps with my mortgage plus I do not have the $$ to fix it.
The only marketing method I am using is listing it with a Realtor. It’s been on the market for 6 weeks. There has been very little traffic.
HELP.
Drop the price - Posted by Gene
Posted by Gene on November 03, 2006 at 09:55:55:
Old comps don’t matter in a soft market.
The only reason a property dosn’t sell is the price. Drop the price and it will sell.
Otherwise you can increase the value to reflect the price you are asking.
Gene
Re: What to do in a soft market? House ain’t movin - Posted by Charles Parrish
Posted by Charles Parrish on November 03, 2006 at 24:06:44:
Consider having a Reserve Public Auction. All you will have to pay is the cost of advertising. Many auction companies will advance the marketing cost if you are short on funds, or conduct an absolute auction for free.
With many auction companies there is no commission, no settlement costs and sold in as is condition with no contingencies for anything including financing.
Within three weeks your property could be sold. If the property does not reach your reserve (the amount you would be satisfied with), you do not have to sell.
NEXT: Offer to purchase your mortgages. If you have a first and second that total $100,000 and you can negotiate a discount of $20,000, you could turn a stressful situation into a profitable one. (You do not need the cash, if will come from settlement).
Have your lawyer or title company write to the mortgagees to make your offer. Arrange for settlement for 30 days, enough time to settle after your auction sale.
NEXT: Offer the property for sale with 100% financing. The new buyer would take the property subject the existing mortgages and pay you your equity profit monthly.
NEXT: Put together a joint partnership; have five friends put up X dollars with shares in the building. You use the money to improve and profit. Grow the value and sell within a few years for a nice profit for all partners. Show your partners what the potential return will be.
NEXT: Conduct your own SEALED BID AUCTION. Advertise your property, have a few open houses. Offer it at any price above X. Let the bidders know that on Friday at noon all offers will be opened and the highest bidder gets your great investment and you get the cash.
NEXT: Offer it for what you owe.
Send me a note if I can help you.
Charles Parrish
Auctioneer/Investors
Re: What to do in a soft market? House ain’t movin - Posted by Steve
Posted by Steve on November 02, 2006 at 21:13:33:
Sell to an investor for terms.
amen, brother - Posted by David Krulac
Posted by David Krulac on November 03, 2006 at 13:17:12:
you been reading my mind again?