SELL NOW and then “age” your paper - Posted by Michael Morrongiello
Posted by Michael Morrongiello on May 10, 2000 at 12:39:41:
I am not sure WHY your homes are not selling? It could be their location, condition, pricing, market conditions, etc. - however carrying debt service on vacant properties is no fun in the park.
You’ve got to stop the bleeding…
You say you have tried to sell with owner financing and the only interested parties had blemished credit. Well that does not necessarily stop you from STILL selling to them and financing them. You can use a contract for deed, or a wrap around type instrument to sell to them. You then “age” or season the financing for a period of time which will vary from 3 months to 12 months depending on the severity of their credit. If they demostrate that they can pay you timely then you can acheive cash liquidity for your paper. Make SURE you can document the payment history clearly and conclusively.