I’m new to this message board…I’ve read that a lot of you are familiar with and are looking for short sale opportunities. I own a nubmer of duplexes in Lubbock, TX that are only worth about what I owe on them. Problem is, to sell them, I need to pay closing costs, brokers, etc. From an income rental valuation they are probably worth $165,000, but to sell them through a conventional method I would need to ask around $177,000. How can I sell these myself so that I can pay off the 1st TD of $164K and move on? The rental market has gone to hell and at my cost basis the deals don’t break even every month. For a new investor who has a lower basis, and probably a TD of only $136K (by putting 20% down), they do make sense, as they are a 6.1% CAP now and with great upside once the market comes back. Any advice would be appreciated as I don’t want to be foreclosed on.
First thing you need to do is get out quickly as possible starting with the emply units. Some will come to you and try to take over the units and try to help you Short Sell… but it may take some time.
Try putting them on market by yourself and you can justify to your lender that putting for sell yourself and putting a ad in newspaper did not generate good offer.
If you get an offer and come short about 4-5K … your lender will discount that to you easily over 20-40K per unit.
Ask them to waive any amount judgement against you as part of short sell process.
Get expert advise who knows short sell… this will go against you as they will be successful in getting bigger discount and you will have that amount on your credit.
I think you are better off doing it by yourself as you probably know landlording and financing as you already own these properties.