I need help... real bad! - Posted by UpsideDown - Fl

Posted by Chris WFL on May 15, 2007 at 21:20:23:

Email me the addresses and what you need to get out of them and I will see what I can do.

Been a while since I have been up that way but I still have a few friends and family up that way.


I need help… real bad! - Posted by UpsideDown - Fl

Posted by UpsideDown - Fl on May 15, 2007 at 08:22:05:

I bought 2 houses from a nice old lady who owned dozens of houses free and clear. Both houses are sitting empty…

1 has eaten my wallet and credit cards up to a tune of 35K in renovation work and in a rough area that is being revitalized… but not quick enough. Been sitting vacant with no hope of selling it. I am trying to rent but people don’t even have the security deposit amount let alone the rent…

The other is I bought under the idea that the house could be fixed up and retailed around 160K.

The house needed some work but was in a great area.

Turns out my house is on one side of a dividing street. You know the type. One side is historic and similar homes are selling for $160 - 200K.

My side of the street… hood. Houses selling for 80-100K. I owe 85k and it needs a ton of work. I had a tenant in there that wanted to buy it.

The floors were unleveled and they attempted to unlevel them and noticed extreme termite damage. I called a termite guy out there and he told me the house is too far gone and that it probably would be condemned if the county were to walk through the door.

I went back to my seller and she called me a flippin liar saying that she had the house tented 3 years ago.

I borrowed nearly 20K from a family member and owe the seller about 60K.

What should I do?

I’ve been trying to gather up some nerve to ask her to reduce the mtg payoff from 60K to 35K so I can unload this thing.

She has owned literally dozens of houses free and clear and has made her money.

This is one bad deal that i picked up from her and I have another right up the road… She literally saw me coming!

These 2 bad deals are enough to bankrupt me and hurt me and my family’s welfare for many years to come.

I am humbled by my mistakes and truly hope that she can show mercy on me and work with me on these.

If you were me… what would you do?

Predatory Sellers - Posted by Jimmy

Posted by Jimmy on May 16, 2007 at 07:09:00:

hate to rub salt in your wound, but… almost anytime a seller offers financing, the terms will be sharp and one-sided. the price will be too high, as will the interest rate.

when taking on rehab projects, you need to do your homework.

  1. what will the property be worth when you finish? don’t guess. pull comps for similarly situated, renovaed props.

  2. what is your rehab budget? get it bid before you pull the trigger. again, don’t guess.

  3. factor in a nice profit margin. this margin pays you for taking the risk, and it also helps you if you are wrong about 1 and 2.

Re: I need help… real bad! - Posted by Rich-CA

Posted by Rich-CA on May 15, 2007 at 13:12:47:

My first call would be to an attorney with the sales documents, required disclosures, home inspections and pest reports (many lenders require a Termite report before approving a loan) to see who should have their toes held to the fire. In many states defects have to be disclosed if there is any reason the owner should know these are present. An attorney may help you sort this out.

If you didn’t do any of the inspections, then you can hope your state has stringent disclosure requirements for owners. Its really the only way to get the seller to do anything. From your post, the lady does not sound interested in spending any money or time with you. She may have even unloaded properties she knew were bad just to get the headaches out of her portfolio (I had a seller unload a tenant they should have evicted just because they didn’t want to go through the trouble and then try to keep the deposit leaving me with the tenant and no security).

Re: I need help… real bad! - Posted by Chris WFL

Posted by Chris WFL on May 15, 2007 at 12:59:37:

Where are the homes?

Re: I need help… real bad! - Posted by Tim

Posted by Tim on May 15, 2007 at 10:26:59:

I feel for you, I went through a period of a few bad purchases in a row. It can hurt but you will have to do what I did and get creative in how to sell these things without sinking much money in them at all.

Think of these houses as assets and valuable and somthing that some people would want and proceed from there.

I have found that advertising the fact that you dont care about their credit to be a plus to selling or renting fast and for a price that covers me for the bad ones I bought.

Just get creative.

Tim - VA

Re: I need help… real bad! - Posted by chris

Posted by chris on May 15, 2007 at 10:07:21:

Why not try a rent to own with the house. List in the paper a handy man special. Focus on finding someone with the desire to own and the knowledge of construction, but without the credit to own. Get them in for whatever you can collect. Any payment is better than no payment. If they feel it is going to be their home, they will put money into fixing it. If they make payments on time it will be their home someday, if not, you have a house that has been repaired to some degree more than what you have, without more money out of pocket.

Re: I need help… real bad! - Posted by UpsideDown - Fl

Posted by UpsideDown - Fl on May 15, 2007 at 19:50:59:

1 in Sanford, Fl
1 in Orlando, Fl

Re: I need help… real bad! - Posted by Colin Bochicchio

Posted by Colin Bochicchio on May 16, 2007 at 22:29:47:

Some good advice on these post on this thread and I agree a long hold is required on these properties and a viable exit strategy.
YOu need a tenant whom can work on the home and I may have a solution.
In the trusts that I work with if the tenant came in with a contribution to the trust he actually gets that back at the termination of the trust. You would most definitely get a tenant to put monies into it if they know the investment would be reimbursed back.
Get some dyanmic marketing going in your area.
It would be prudent to asset protect the property from this woman just in case she comes back at you.
Feel free to email me at coltrust07@gmail.com and forward me your contact number.
Mr Upside down we as investors have all made bad mistakes in our investing me included so I know how yor feel in a different way.