Steve:
Just like you acquired that property, you can sell to a potential buyer by offering to FINANCE the sale and create a “wrap around” type mortgage. You get enough Cash from the potential buyer so that you can reinstate the existing loan in default and then you have all other payments pass through you.
Keep in mind that you do not have the luxury of time here. You need to Sell NOW in order to preserve or salvage any of your equity that is in jeopardy. This type of property (the boarding house) many investors will look at as very management intensive. So it will take the right kind of buyer or the right terms to ATTRACT someome to this deal.
Posted by Steve M. on November 03, 2000 at 17:12:20:
Hello, and thanks in advance for responding. I have some property in Charlotte, NC. I have a boarding house and an efficiency tri-plex. Both are on the same water line. I am owner financing both properties from a woman who has me on a ten year note at $2100 per month. I have gone through a terrible divorce. My business has been drained and lost, and my credit is in ruins. I have a good deal of epuity in the property. It is valued at over $210,000 and I owe $135,000. I am now nearing foreclosure and need to make a quick sale. At full potential, the property generates nearly $5000 per month, and the expenses, not including the mortgage, are $800. I have easily kept it at 97% occupancy only by placing a simple “rooms for rent” sign out front, as it is in a very good location. The crime rate is low, and I am easily able to manage it myself. I am begining a new career in real estate, and you can imagine that I have very little income just starting out. If anyone has any interest in this property, please email me at steve@brokersteve.com. I currently have it listed (for the last two weeks) at $205,000, but would be willing to reduce it to $175,000.I would be willing to take back a second in the amount above the first mortgage. Please contact me if you have any other ideas. I would rather not lose it. I would also be willing to manage the property.
Thank you,
Steve M.
You aren’t acting much like a distressed seller. Micahel is correct, this is an “unusual” proeprty and not all will even be interested. You have better start coming up with a better price and/or terms if you want to move this quickly.