How do I sell my rehab Quickly? - Posted by Batpro

Posted by David Krulac on March 19, 2002 at 16:57:32:

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How do I sell my rehab Quickly? - Posted by Batpro

Posted by Batpro on March 19, 2002 at 11:26:23:

I have read through the archives here and saw a couple demo ads used to sell, and I am looking for more help.

I purchased a fixer upper in November 2001 for $14,500. I have the whole house on credit cards including the fix up costs.

I spent 4 months remodeling it myself and spent $11,000 in new windows, doors, roof, siding, carpet, kitchen cabinets, drywall, sinks, plumbing, electrical, etc.

I now have $25,500 into it. Several realtors in the area feel it can be sold fairly soon for $60,000. I put an ad in the paper that read: 3-bedroom house for sale by owner, NEW: roof, vinyl siding, windows, doors, hardwood floors, kitchen cabinets, completely new bathroom, etc. $59,900. I had some calls but no lookers yet.

I own another piece of property that I owe $30,000 on. I was hoping to make $30,000 profit on this house for my time and profit. My payments on that property are about $270 a month.

This is my first rehab and I am looking for ways to advertise it that will get peoples attention and get it sold fairly quickly. I want to sell it within a month?s time if possible.

Any ideas on how to sell the house quickly? I am open to suggestions and creative financing for buyers to help them out and also help me get it sold.

Annual taxes on the house are $100 per year. It has almost an acre yard and is a nice neighborhood. I currently have it on a couple credit cards and my payments are about $200 a month but the rates are going to go up on the cards next month and I don?t really want to go get a bank loan and pay closing costs that will dig into my profit so any help anyone can provide in getting it sold quickly would be appreciated!

Adam

Re: How do I sell my rehab Quickly? - Posted by Shawn Dostie

Posted by Shawn Dostie on March 19, 2002 at 22:05:13:

First Place an ad with the magic phrase "Owner will finance"
Take applications (you will get calls) structure a deal at $65,000.00 Top dollar because you are the bank.
Call or submit deal to one of us that can sell the deal for you. Try to get as close as you can to these terms. 10% cash down mortgage $58,500.00 at 30 yr. @9.5% = $491.90 per month no PMI No points Low closing costs EZ qualifying EZ Application process. sell the Mortgage at closing for approx 85% realistically although you may get up to 90-92%. Mortgage can be found at any office supply store.

Look at the numbers.
Conventional list $59,900 take offer of $55,000.00 Pay realtor $3850.00

Owner finance sell for $65,000.00 (full price because of terms and it will sell FASTER) $6500.00 cash sell $58500.00 note at close for $49,725.00 - $53,850.00

net conventional- $51,150.00-60-90 days
net “Owner finance” -$56,225- $60350.00 - 2weeks to 45 days
Which would you prefer.

Good Luck,
Shawn

Re: How do I sell my rehab Quickly? - Posted by SCook85

Posted by SCook85 on March 19, 2002 at 20:31:37:

List the home. Let ther realtors sell it for you. If your part of the country is anything like mine, realtors are dying for inventory to sell. Get it listed and let them do the work.

Happy Investing,

Steve

Six ways to sell and 1 extra truism… - Posted by David Krulac

Posted by David Krulac on March 19, 2002 at 16:54:57:

  1. 100% owner financing, then sell the note at a discount

  2. FHA 97% financing 3% seller help

  3. 80% conventional financing, 20% seller finacing

  4. sell for 20% under apprasied value

  5. offer ZERO interest, that’s what habitat for humanity does.

  6. offer to take ANYTHING of value in trade, car, truck, motorcycle, jewelry, guns, coin collection, snowmobile, tractor, etc. etc.

and if properly advertised and you can’t sell in 90 days then its OVERPRICED.

David Krulac

Re: How do I sell my rehab Quickly? - Posted by phillips

Posted by phillips on March 19, 2002 at 13:51:19:

Sell the house on terms! Get 10% down and a nice monthly income without the worry of tenants.

Make it easy to buy - Posted by Rosie_FL

Posted by Rosie_FL on March 19, 2002 at 13:31:24:

I believe “if you want to sell a house quickly make it easy to buy”.

I fix my rehabs with the intention of

  1. Passing FHA inspection
  2. Looking more like a “model” home than similiarly or even slightly higher priced competition.

I list on MLS for a flat fee and offer selling agent 4% for contract in first 30 days, 3.5% for next 30 days, 3% next 30 days. I demand to be faxed proof of Preapproval before showing house. I bump the price to accommodate agent’s fee and an additional $2,700 ($700 for FHA stuff and $2000 toward buyer’s closing costs).

If the bank wants to make the loan, it’s up to them to make sure the appraisal works.

Last house sold in 3 hours with accepted full price contract to close in 25 days. Previous house sold in 24 hours (at 3% commission) and closed in 15 days.

I must be selling them too cheap!
Best of luck,
Rosie_FL

Re: How do I sell my rehab Quickly? - Posted by Randy_OH

Posted by Randy_OH on March 19, 2002 at 12:59:22:

Adam,
I tried to sell several properties FSBO and was not successful. I ended up listing with a realtor every time. If you do list with a realtor, you are probably looking at around 90 days to close. For a faster close, you might want to consider an auction. Either way, we are getting close to the best time of year to sell. By far, the best way I have found to sell without a realtor is to do a lease/option, but you are looking at 12 to 24 months to close. With a L/O, you have plenty of buyers and will get a top dollar ( if not more) price. You also get some money up front, generally 3 to 5%. HTH.
Randy

Re: How do I sell my rehab Quickly? - Posted by ToddIN

Posted by ToddIN on March 19, 2002 at 12:09:12:

Where is the property located?

Selling Mortgage - Posted by Batpro

Posted by Batpro on March 20, 2002 at 07:26:08:

Any pointers on setting up a mortgage or selling a mortgage. You state to present the deal to one of you. Can this be done fairly soon after closing?

Adam

Re: How do I sell my rehab Quickly? - Posted by Batpro

Posted by Batpro on March 19, 2002 at 15:06:17:

What type of terms are you suggesting? Where can I obtain the necessary paperwork for selling on terms.

Adam

Re: How do I sell my rehab Quickly? - Posted by batpro

Posted by batpro on March 19, 2002 at 15:03:31:

Thanks for the advice so far. I would like to get cash if I can. Some have mentioned lease options, where should I go to find more info and purchase agreements for this.

The house is located in Calumet, Minnesota (Northern Minnesota). This is a town of about 2,000 people and it is located halfway (15 miles) between two larger towns that have about 12,000 people in them.

Does anyone have any catchy Ad ideas?

Adam

Re: Selling Mortgage - Posted by Marcos

Posted by Marcos on March 20, 2002 at 12:30:03:

It can be done at closing if you structure the deal right.

Marcos