I am curious ... - Posted by Merle E Woolley

Posted by Jim IL on March 23, 2001 at 22:11:53:

Hey Susan,
This year sadly I will miss the convention.
The real kicker is that I sincerely wanted to meet certain people “face to face”, and you dearest are on that list.
I guess we just have to wait until I move to Florida.
Then you, Kenny, my lovely wife Gloria and I will HAVE to meet and go out.
I hope all is well with you, and have a GREAT time at the convention.

God Bless,
Jim IL

I am curious … - Posted by Merle E Woolley

Posted by Merle E Woolley on March 20, 2001 at 19:59:47:

On several occasions, I’ve read posts by people who had houses they had not been able to sell for a lengthy period of time.

Now, we don’t sell for cash, so we have never experienced this problem. In fact,we often have Buyers(Lessees) lined up before we get possession of a house. When we don’t, it rarely takes more than a week or two at the most.

Even at that, I have some thoughts about the unsalable houses, but before I venture any suggestions, I prefer to know more details.

If you now have that problem … one or more houses that you have been trying to sell for some time, but have not been successful … post the details. Perhaps some of us can offer some help to end your dilemma. It bothers me to think you are sitting there making payments … pouring money down the drain … there has to be a way to end that financial burden.

Looking forward to helping … I hope.

Re: I am curious … - Posted by Earnest

Posted by Earnest on March 23, 2001 at 22:51:57:

I’ve wondereed about this too. What if you took back a 2nd, receving interest-only paments for a period with a ballon at the end. I’m thinking this may be attractive to buyers who anticipate increased income in ensuing years.

Re: I am curious … - Posted by Jim IL

Posted by Jim IL on March 21, 2001 at 20:27:02:

Thank you sir for the offer of input on our deals.
It is greatly appreciated.
I have a home now that I have been trying to sell for some time, with one offer which fell thru.
Frankly, my gut tells me that the price range is the biggest problem on this one, but lets see what anyone else has to offer.
FMV: ~$190k
Sale price: $185k (dropped from $189,900)
Payments: $1850/month, PITI
This is an upper end home in a subdivision where the comps are between $185k and $240k.
I have offered this for sale conventional,L/O, Contract sale.
I took this one “Subject to” and must get at least $5k upfront to cover my expenses. (which grow every month we hold it.)
I placed an ad last week that said, “$10k down, take over payments” and the calls have come in. But, when people hear the monthly payment amount they cannot afford it.
I even thought about selling this home for more down, and less per month, making up the difference from the upfront money.
I would then try to get the buyer refied to cash this out ASAP.
I don’t mind paying a couple hundred per month to get this filled, as long as I get enough upfront to cover that for a year or so.

We have cleaned this home up REALLY nice, painted it (I had the paint, so no cost there but time), and made it look good.
My flyer box outside the home is always needing refills, so people are looking at it.
I’ve made the price lower, created some EASY terms, and no one has made any offers or wanted this home.
Any ideas are appreciated, and if you want any other info, let me know, I’ll add that here.

There is not a ton of room here for lowering the price too much more.
Frankly, this deal was done as a favor to some friends who were in trouble financially. (I know, NEVER do THAT again, now there problem is mine…live and learn!)

So, thats my deal.
Thanks again Merle,

Jim IL

Here’s One - Posted by Frank Chin

Posted by Frank Chin on March 21, 2001 at 09:28:55:

Hi Merle. Here’s one for you to chew on.

I’m currently selling a number of properties. I place two properties for sale in December last year. In New York City, I got one offer the first day, and another the following weekend. Closing is anyday now and the buyer is anxious. The market is hot here.

I expect a longer haul in Springfield Ma. I’m told its more a buyer’s market and properties can sit for a year. I listed the property in December with an agent and nearly a dozen people came by. One buyer was interested but was looking to have a grant from the city for the downpayment. But because its an upscale condo, it did not quailfy. Got no offers.

Heres some numbers:

Condo Unit: 1BR/1 Den/1 Bath (upscale historic)
On market: Since December 2000
Asking price: 69,000 (reduced from 71,000)
Comps: 65,000 to 70,000
Maintenance: 130/month
Mortgage 361/month
Rental: 575/month (tenant moved in January)
Mortgage balance: about $32,000
Original Purchase price: $42,000


The agent claims the bad weather, and Springfield had a lot of snow. The listing was just extended to May. Based on what I see, I doubt it’ll be sold by then. So I’m thinking:

After May, we’ll dump the realtor

1- We finance the 10% downpayment by taking a second.

The buyer would get a 90% conventional mortgage. We’re not even worried if the buyer doesn’t pay the second mortgage as we’re still walking away with a good profit.

2- We pay off the mortgage of 32,000 and offer 100% financing for the entire selling price.

We move the selling price back to 71,000 and do 100% financing. Then discount the note. We realize discounts run 15% - but we still have a good profit.

My wife is little leery of assuming the financial risk and foreclosure.

I don’t know if a wrap would work in a condo situation.

3- L/O

We thought of doing this, as prior tenants went on to buy other units in the building. However, we rather do a direct sale at this point because the unit is in very saleable shape as it was totally redone prior to the last tenant moving in. It’ll have to be redone if rented out again.

With a L/O the T/B may not qualify for a mortgage and we’ll wind up looking for another T/B. If this is the case - we’ll rather rent it out a few more years.

4- Continue Renting

There’s a new courthouse going up across the street. the consensus is that the value should go up - which I beleive is a good selling point.

So what would you do ???

Re: I am curious … - Posted by David Alexander

Posted by David Alexander on March 20, 2001 at 23:46:47:

I think it also involves price range… for instance I’m currently setting on a 350k house even though I ahve been offering Owner financing. Tommorrow I go out to lease companies and see if they have anyone looking for a L/O… negative cashflow in the wrong situation… sucks… especially from one source.

David Alexander


Posted by JPiper on March 20, 2001 at 22:34:26:


Hi Jim! [nt] - Posted by SusanL.–FL

Posted by SusanL.–FL on March 22, 2001 at 11:45:05: