Posted by Ronald * Starr(in No CA) on July 12, 2003 at 01:04:06:
Nice to talk with you.
Congratulations, that sounds like a super deal.
But, it is hard to advise you without knowing that your goals and approach are.
If you want to long-term hold properties for rentals, you try to refinance the property to get cash to buy other properties. It might be hard to find a lender these days, as they worry about false appraisals and suchlike when there is such abig discrepency between the purchase price and the market value. You might have to wait six months to get a loan against the property.
If you want to resell properties quickly for a profit, you might try reselling. However, it is possible that your buyer could run into the same trouble of finding a lender if there is no “seasoning” of the title. So, you might be limited to buyers who don’t need a loan–all cash buyers. If you go that route, you will probably have to give some discount from market value to make it work.
You might trade the property to somebody for their property. Probably no trouble with seasoning. You either buy a property of same value or higher, with the traded property being the down payment. You might look for investors with larger properties that want to wind down to fewer properties with less management hassles. The selling point is that the property will cash flow nicely since there is no loan on it.
Good InvestingRon Starr***