First I must say I like this site. Very helpful and I thank the people that post and keep things moving.
I am about to lose my First 2 properties I invested in as a REI. I’d hate to go into the long story of what happened but I got screwed and the people I purchased the properties from I feel knew I was a new REI and took advantage of me and my wife.
Long story short we invested in 2 houses that they sold us and being new we didn’t ralize these properties were not the best to invest in so its been over 5 months and we are unable to rent the properties to anyone, the area is that bad. I am just about out of money to pay the mortgages.
Now im stuck with 2 prooerties I cant sell or rent out and the perfect credit I built most of my life is about to be ruined.
My question is if I cant get anyone into the properties or sell them, what happens next? I know it’s a silly question but I am about to be in a world of hell as far as my credit goes. I really like the idea of REI. I have learned a lot in this terrible deal I have made with these people and I know what to do next time if there is a next time.
I’m I out of the game now if I lose these properties due to bad credit?
I hope i provided enough infomation. Any response is appreciated.
I feel bad about that is it possible for you to try and resale right fast does it have equity in it.
Maybe you can do a lease option or rent to own. If you do you can get a down payment from the buyer and charge the rent amount above your mortgage and if I were you any extras save if they don’t pay. The good part about doing a lease option/rent to own. Is that the buyer would give you a nice down payment. Which would probably cover 3-6 months payment depending on mortgage amount you should try to get from 3-5thousand down. Don’t spend the money just in case these people don’t pay you can still pay the bank and you can turn around and do the same thing again.
Another plus is that if there are any repairs the buyer/leaseholder/renter will take care of it themselves because it’s suppose to be there house. Another option is if you got equity find another investor to buy it.
Just whatever price you charge for the house make sure to make something out of it but don’t go overboard. It all depends on the area and the pricing. If you just want to get rid of it just charge what you paid and get out of the deal.
Good Morning Ed,
I’m not sure I could help, but if you want to send me the following information I would be happy to look at the situation and offer any ideas I have or let you know how I might handle something like this. I am an investor, not an attorney, real estate agent or accountant, so please know in advance that whatever advice I offer should be checked out by a professional before moving forward (hopefully that’s a good enough disclaimer to keep me out of court…ha ha)
a. what cities are these properties in?
b. bedrooms / baths?
c. do they need any rehab or are they ready to move
into?
d. what are your payments? PITI
e. what are the going rents in the area?
f. what is the value of this home, is this number based
on comp’s, real estate opinion or ?
g. what amount do you owe on it?
I will apologize upfront if I am asking about information you are not comfortable sending. If you don’t feel comfortable sending this information, I understand, and if you prefer not to show this information publicly on this site, you can send it to my email.
Please know upfront I do not charge for this, nor will I accept any monies. I have been where you are and recieved help, so I am just returning the favor.
Go Get’em!
Ray Rochefort
Managing Member
Purpose Investments LLC
Indiana
That is my next step. I have tried a few other investors and they tell me its something they really cant do anything with. I just want to break even with these houses. I am just trying to save my credit so I can try and find better properties and stay in the game but if I lose out on these deals then it just might be over before it really began.
Just noticed you are in Arlington, TX. I’m a DFW investor myself and part of the DFWREIN. Shoot me a private mail and I will give you my phone–maybe we can find a way to help. Betty
I may the one of my properties rented out. i got my fingers crossed.
Has anyone actually had to foreclose on any of your rental properties?
Its a 2 bed\1bath in a not so good nieghborhood that I am really having trouble getting someone into. I have a for sale sign out there now. I have enough for one more payment on this house and thats it, its a done deal. I dont know what is next to happen after I pay this last payment. Does anyone know what will happen after that? Any suggestions?
Here’s another suggestion towards renting… talk to a local property manager (licensed) about finding you a Section 8, govt. subsidized, renter. It’s a guaranteed rent check once they line you up with a renter, and usually there’s a list of them waiting for a property to open up.
This would give you some breathing room while you look to selling the properties off.
Another consideration is selling it to as much of the loan off as possible and work with your current lender(s) to pay off the “upside-down” deficit part as a separate payment. A ‘forbearance’ sort of approach.
As for getting back into the game, there are still hard-money lenders for future projects who will loan to you based on their LTV appraisal of the property. Your own cash and credit history are more the background with HM lenders.