Need advice.... How do you get rid of a house? - Posted by Mike

Posted by Mike on July 03, 2003 at 09:52:15:

Thanks for your response.

Need advice… How do you get rid of a house? - Posted by Mike

Posted by Mike on July 03, 2003 at 07:37:12:

My partner and I have a fixer upper (house) under lease option with a motivated seller. We’ve had it for about 11 months. The plan was to fix it up and sell it for retail market price. We have been doing other deals to fund the materials to fix up the property. The property has been fixed up for the passed 3 months and we have no qualified buyers in site. We have it on the MLS, and I even made fliers and passed them around the neighborhood with a $1000 dollar referral fee attached. I don’t understand why this house has not sold yet. The monthly payments are killing our pockets. The house is a 3 bedroom. We put new carpet in, fresh paint, new kitchen, wood deck, and allot of new fixtures up. Any advice to a retail newbie? How do you sell your houses quickly? (experienced retail investors please)

$38,000 to seller
$65,000 sell price
$27,000 equity / profit


Run This Ad!! - Posted by Randy

Posted by Randy on July 03, 2003 at 13:12:35:

Owner Will Finance
Small down, bruised credit ok,
3 bd, 1.5 bath, 1500 sq.ft., big kitchen
Fenced, near Wal-Mart. 555-5555

Obviously you would make the appropriate changes to reflect your property. Market the house at retail appraised value then sell the note. If you need help doing that let me know.

Need advice - Posted by Jay (MI)

Posted by Jay (MI) on July 03, 2003 at 08:50:07:

Am I understanding that you have the house under L/O with no tenant buyer? Can you move in a tenant buyer, or did you just L/O for 1 year?

Re: Duh … - Posted by Ed Copp

Posted by Ed Copp on July 03, 2003 at 08:34:33:

Lower the price, until the house sells.

The number one reason that houses do not sell, or do not sell quickly is OVERPRICING. Every Realtor knows this, even your partner.

Realtor Motivation - Posted by Brian(md)

Posted by Brian(md) on July 03, 2003 at 07:56:38:

Did you try proposing a bonus to the Realtor?
“Mr. Realtor, if you sell this house in the next 30 days I’ll give you a $1000 cash bonus as signing, if you cross that mark but sell it before 60 days, I’ll give you are $500 cash bonus as closing.”

I’ve heard this works wonders.

Re: Need advice - Posted by Mike

Posted by Mike on July 03, 2003 at 09:50:15:

We put it under contract for 2 years. We could put a tenant buyer in, however we put about $7,000 into rehab and mort. payments and would like to cash out at this point.

Re: Realtor Motivation - Posted by Mike

Posted by Mike on July 03, 2003 at 08:02:30:

Unfortunately, the Realtor is my partner.


Re: Realtor Motivation - Posted by Marcos

Posted by Marcos on July 03, 2003 at 08:54:36:

You’re missing the point. The listing realtor is not who is going to find you a buyer. So, your partner is not going to be the one who finds you the buyer USUALLY. So, a bonus will be paid to the buyers agent. NOT your partner.

Now, you can take all kinds of steps to get this done. I don’t know your market or where you are. I don’t know where this house fits in the spectrum of houses for sale. I’m assuming it’s not the best neighborhood. The way you sell houses in the lower end market is find out what the buyers in that area want.

If your buyers are like my buyers they want to know two things. 1. How much down 2. How much a month.

So, appeal to them. Make it appealing. Make your house the best house in the neighborhood. You might put an ad like this in the paper.

NO MONEY DOWN!! CHEAPER THAN RENTING! Fully renovated 3/1 offered by motivated seller. $0 down, $450/mo. 651 Chestnut Dr. 631-0000

Actually this is an ad I have in the paper right now. No reason to come up with a fake ad. Want to see another one?

$0 DOWN 2 FREE MORTGAGE PAYMENTS Cute 3/2.5, 2 story in quiet area, 1800sf $110K obo. 513-0000

I’m appealing to them, because most buyers in this area have very little cash. I am willing, creative and flexible at getting them in with very little cash.

I have them call me, I have them look at the property through the windows, then they get to get prequalified with my mortgage broker, if they are then “qualified” to buy my house, then they can get in the inside to view it. And we sign the contract. I also take at least one backup contract and work that as well. We get enough information to be able to close with them in about a week if the other contract falls through.

The key to being able to get this done is having a great mortgage broker who knows how to get things done. I think my mortgage broker made about $8,000 off the last loan he did for me. Do you think he’s motivated? He wants every single loan I can get for him. Just ask around. My mortgage broker can get 90% financing for people with a 500 beacon score. Most banks and mortgage brokers won’t touch that. And he does most of the work. I spend about 5 minutes on the phone with the prospect, get some basic info. Then pass them on to the mortgage broker. And they don’t talk to me again until I know how much I can expect to get on the deal.

Anyway, I hope my rambling helped. Good luck to you.


Re: Realtor Motivation - Posted by kgrant

Posted by kgrant on July 04, 2003 at 10:47:25:

Hi Marcos:

I am now about to do some investing, flips, rehabs, etc. However I am in need of a mortgage on a house I have been leasing for over 4 years. Due to my former employer going bankrupt it delayed my ability to obtain a mortgage.

I saw your post at responding to one who cannot seem to sell his house. You had said your broker can get a 90% loan for beacons around 500.

Does this broker have the ability to do loans in Florida? If so i would appreciate a referral. I have cash and credit of lease payments toward the purchase.

Thanks so much
Keith Grant