need to get out or fix bad deal HELP

Doesn’t sound too bad
2 family
Springfield ,Mass
It’s not quite war zone but not too far removed overall I’d say C C-
western part of the state kinda ot of the way compared to Boston
Both ideas don’t sound to bad except for Money going out
I 'll explore buying down teh rate and thE ramifications
guess I’d speak with my Bank?

Not dire just yet but made this purchase over a year ago adn wasn’t familiar with half the things I know now like 50% rule and bunch of other stuff


Yes I am hopeful


what makes it a not so good deal is 50% of the rent is to cover the above expenses you mentioned and the other 50% should be PITI and some profit

the problem is I didn’t use a formula , invested without a plan and education :banghead

Hi urban investor,

I am new here and was just reading your situation. The first question is; Is the place rented or vacant ? One solution would be to put an ad in the paper that goes like this:

Desperate Seller, Rent To Own
with Buyers Assistance Program
3br 1 ba. Call Phone Number

You can put a sign in front of your property with this ad, you can put out fliers and don’t forget word of mouth ( Tell The World ).

Then when you get the flood of calls from tenant buyers first question is: How much money do you have to exercise your option to buy ? You want minimum 5% or $5000 Down Payment. Then when you have all of the buyer tenants lined up and make an appointment with them to meet you at the property the same day with their CHECKBOOK IN HAND. MAKE SURE THAT ONLY ONE SET OF TENANTS GO IN AT A TIME. YOU DON’T WANT TO CREATE WORLD WAR THREE WITH YOU IN THE MIDDLE AND BESIDES THIS WILL GET THE BUYERS MORE MOTIVATED.

Make sure you have credit applications on hand so they can fill out. After they fill out the credit application with their deposit you will let them know in 7 days who you will put in the place based on their credit. Even if they have marginal credit you can find a Broker that will work with them and get them financed in 3 to 4 months max. Of course you will need to return other uncashed down payments to buyers but the beauty of this is these people will become part of your buyers list and you can find more properties to put them in.

Where the Buyers Assistance Program comes in is you will have the Buyer contribute towards their Down Payment by getting an extra 300 dollars over your mortgage payment and crediting them back $200 toward their down payment every month. and you get an extra $100 dollars cash flow to you. In worst case scenario you will do a 1 year Lease with Option to Buy with your Tenant Buyer and you can get them qualified through most banks because you have one year track record on your Buyer to get them financed.

End Result: Your mortgage payments are made and you get rid of your bleeding.

There are 65 to 70% of the population that believe that they can’t buy a home but as you will see it is not so. Rent to Own could be your ticket.

The other option is to do Owner Financing where you get a buyer on a Rent to Own ad and they give you a Down Payment of atleast 5% or minimum $5000 and do seller financing but the maximum interest you should charge is 10% because of financing laws. If you decide to try this method you should check with your attorney on the maximum interest you can charge in your state.

If you have a good tenant in your place you can offer them first bids and make sure you always get a credit application. VERY IMPORTANT!

I hope this helps out and would like to see your end result.