I bought and rehabbed two houses in so. cal. They have not sold after I rehabbed them- I am now approaching severe financial difficulties. I just lost my home in New Orleans by Katrina- that I was going to refi to help me. I need info on how to proceed to sell these houses. I have a second broker (first severely overpriced properties). I don’t want to take a bath on them, but realize I will lose money on these deals.
They are priced 875K and 975K. I have put in 130K and 150K into them for rehab. They would have been good except the market has now turned and slowed in so. cal. With all costs for broker and closing I will lose quite a bit on each (at least 50k+)
do I get rid of broker? She has advertised them heavily If so, then how do I sell them myself?
I got two low ball ofers on one house and the other nothing
3)Reading book on 5 day sale- any idea if this works?
4)I’ve looked into a chapter 12 reorg. I am not sure if this might be a good way out.
I would appreciate ANY info and help on how to proceed. Anyone else gottem themselves into a situation like this? What did you do? How did it work out?
the 5 day sale did not work for a friend of mine in august.
i would fire your broker.
list the property yourself on MLS and realtor.com for $149.00
offer the buyers agent 3.5% so they push your house to their
clients in order to gain a higher commission.[most sellers currently
offer 4% to be split equally between buyers and sellers agent.
i and my friend both tried this in San diego recently with great
success.
I guess to give the best advice on these I would really like to know how much you paid for them! Here is the thing it looks to me like you have put 150k of your own $$ into this project! so I am looking at only basic numbers here! If that is 150k total that is 75k per house right?
So $875,000 sales price
75,000 repairs
52,500 Realtors costs at 6%
18,000 holding costs @4,500per month (LOW END)
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$729,500.00 Minus any loans
The best way that I see in order to make this work is try to carry 15% see if you can open the door for buyers with great income and less then perfect credit there are people out there that have 5% to put down so in this case it would look like this!
875,000.00
131,250.00 your note
43,750.00 there 5% down!
700,000.00 note on the first!
So at 12% interest per month on 131,250 they would pay $1,350.05 a Month (give or take $100.00) the great thing about this is after 2 years of paying 1,350.05 per month they still owe you $130,237.04 that is after paying $32,400.00 so you made back 30k of your loss. That’s what I would look at doing!
Now Remember this is going to open the door to 1,000’s of buyers! Also look at it this way that is on the cheaper house so double that number $2,700 per month you do 10 of these a year that is $27,000 a month now you can retire!