In a Dilemma - Posted by Mae

Posted by Mae on February 10, 2000 at 09:43:58:

I paid cash and I have made a lot of improvements .

In a Dilemma - Posted by Mae

Posted by Mae on February 09, 2000 at 11:38:18:

I purchased a home in an area in which I was not familiar with the market. That was my first mistake. By the way, I as a novice in the area of real estate investing. This is the first home that I purchased which was going into foreclosure and I bought it from the bank. I did not realize that the home had been trashed on the inside so there was a lot in work to do to make it livable and appealing to a buyer. Just recently, the furnace went out, so I had a new furnace installed. Needless to say, my profit is going to be very small or not at all. I listed with an real estate company because the home is in another state. I believe now that the price need to be reduced but I would like to wait until listing run out since I have had to put so much money into this house.(The furnace was overwhelming) My question is: Would it be an advantage to rent for awhile to try and recoup some of my money that has been put into renovation…knowing I have to be careful to who I rent…or just reduce the price and take my losses and learn from this experience. Any suggestions would be greatly appreciated.

Re: Semantics (little bit of info for newbies) - Posted by NJDave

Posted by NJDave on February 09, 2000 at 13:34:49:

Not to be picky, but if you’re going to play at real estate investing, your statement, “This is the first home that I purchased which was going into foreclosure and I bought it from the bank,” appears inaccurate. If you bought it from the bank then the home was NOT going into foreclosure… but rather had resulted as an REO from an executed foreclosure process.

If the loan had just been foreclosed, you would have purchased the home from the Homeowner, not the foreclosing mortgagee.

Unless, of course, you purchased the mortgage and note from the bank, completed the foreclosure and ended up with the house…

Re: In a Dilemma - Posted by PBoone

Posted by PBoone on February 09, 2000 at 13:32:15:

Mae,
Kenny Rogers said it best:
"You gotta know when to hold em, Know when to fold em, Know when to walk away, know when to run"
On this particular piece I have a couple of questions?
Can you rent and make a monthly profit? if yes consider a lease / purchase to a tenant that may be short of down money.
Is there enough room between your costs and the retail purchase to sell no money down with a carryback? if yes advertise and sell that way. if all else fails write an add that says something to the effect.
OUT OF TOWN OWNER NEEDS TO SELL TODAY
description, address, phone
I hope this helps in your pursuit. If the House is near Portland Or we would gladly look at the possibilities at no cost to you.
Pat

Re: Semantics (little bit of info for newbies) - Posted by Mae

Posted by Mae on February 09, 2000 at 16:27:01:

You are right…and it was an REO from an executed foreclosure. Do you have any suggestion?

Re: Semantics (little bit of info for newbies) - Posted by NJDave

Posted by NJDave on February 09, 2000 at 17:17:40:

Did you pay cash, or did you give a mortgage in exchange for a loan?