Hey Guys,
So, my partner and I have a property on the east coast, across the street from the ocean. New, perfect, huge, nice area, all good things. Problem is, I trusted some real estate “pros” and I may have made big blunder. Basically, I think a got a great property below market value (a lot less). I took some equity out to furnish. The rental agency has done a horrible job and has only fullfilled 20% of the 2007 rental projection. So, as you may have already guessed, I’m running out of money. We are listing the property to sell below appraised value. I put a lot of time and effort into this condo, but I have to dump it. My question for everyone: How the hell do I get rid of this thing in this environment. I’m willing to lose money to get out (without aquiring more debt) and have someone else who is better financed reap the rewards. What are my options here? It’s valued way over the amount I can write off as a loss and will only get that money back when I sell. Any ideas on how to unload it? Thanks! :help
You are not alone in your dilemma. There are “investors” up and down the eastern seaboard that jumped into the water figuring that they could sell for more than they paid and that real estate can never go down in value. Well, it can and did. The greater fool theory can only work so long. If your property is really a good one in an excellent seaside location I might recommend that you take some time and dollars and start to market it in Europe.
With the American dollar in the toilet, Europeans are jumping on American real estate. The same thing happened when the commercial real estate market tanked in the late eighties. The Japanese almost bought the United States. Our real estate is a bargain to Europeans although they are encountering something of real estate bubble over there.
Other than that there is nothing you can do but tough it out or stop paying and try for a short sale.
Hey B Rock. Not alot of good news to tell you here. However, I can tell you that it’s not as bad as you may think. There are companies now that can affectively erase foreclosure from your credit in about a year’s time. My advice? Don’t spend another penny on the thing, pray it gets bought before foreclosure (and do everything you can to make this happen), but if it does foreclose, hire a credit agency to remove your foreclosure from your credit. Worst case scenario? Buckle up tight for 12 months, learn your lesson and become wiser because of it. Just my $0.05 (up due to inflation)
Thanks for the responses. I still have 6 months until I’m out of money and I’m starting to think about getting a 2nd sales job to try and cover it. That’s the great thing about outside medical sales!
In the mean time, I think I will explore marketing to Europe. Any advice on which companies to list with would be great. As far as letting it go into foreclosure, I’ll fight like hell to avoid that. I’m on 4-5 websites now and even have my own. So, I’ll pump some money into advertising for rental, and ads for sale. Maybe I’ll get that 2nd job. It makes me feel weird that I’m a pretty successful guy with a nice house and job, but because I was so desperate to make an investment, I’m in real trouble. Thanks again everyone!
You may think about offering it with owner financing by using a land trust. You may get more offers with terms like that.
Sorry about the misfortune. Since your listing it below market, you may want to visit your local REI and see if there is a willing buyer. Your next option is to get creative including lease options and Subject-2. You have to exhaust your marketing avenues, meaning - make it a mission to exposed the property to the buying public. Despite the down turn in the market, they’re still qualified buyers out there and plenty of investors. Good Luck.