Posted by Bill Gatten on January 31, 2000 at 15:57:34:
Also, what are your contingencies? Can you hold for a while and L/O or PACTrust the property? Can you rent it with postive, or with a small negative for a while if you had to? Do you have the cash to pay out if you have to?
Bill Gatten
No Calls On Ad! - Posted by Annette
Posted by Annette on January 31, 2000 at 15:02:40:
Hello Everyone!
I took the extra step in marketing a house that I have under contract in our local newspaper this weekend. Unfortunatley, I had not one phone call on the ad. I found this to be very disappointing but not discouraging because I know that everything takes time and patience.
This house is a two family house located in a fair neighborhood which the comps are $50-$65K. The house needs about $800 worth of work done to it. The 2nd floor is ready to be rented only needing a refrigerator. All new storm windows in bedrooms and livingrooms. This will rent for $500-$550 a month. The first floor needs the most work done to it but I figure who ever buys the house, if handy, can make whatever repairs necessary while renting the upstairs out. I had advertised the house for $42k. I signed contract with seller for $30,500. I want to sell it retail to get a nicer profit. I did speak with an investors who made an offer but did not leave me enough room to make a profit at all. What can I do now? I have a little over a month to find a buyer or I will loose out on this deal. I am considering putting the house in the hands of a realator, which I know would cut my profit, but hey I just want to sell it and have enough money to go on to other real estate investment opportunities and possibly see yall in Atlanta Feb.
Your response is appreciated.
You want calls try this … - Posted by Michael Morrongiello
Posted by Michael Morrongiello on January 31, 2000 at 22:58:27:
If the home is to be put into top condition by you prior to the sale to an owner user buyer then I would try running the followind AD which works well in almost any marketplace;
Owner Will Finance $5,000.00 down, $411.63 per month, NO Bank qualifying,
Lovely 2 story, …
Call today
You try to attract a buyer who has resaonable credit and at least 10% or $5K to put down towards a $50,000 sales price. Yoiu agreed to finance the balance of $45K with a seller take back mortgage to be amortized over 30- years at 10.5% and payable $411.63 per month. With the right buyer that mortgage can be sold at closing to generate enough cash to allow you to pay your seller their $30,500.00 and allow you cash out on top of that.
I learned the hard way a long time ago that for the most part it is FINANCING and the ease of obtaining that financing that sells property and not always a low sales price.
If you want to fine tune this option please feel free to contact me as I would have interest in that newly created note and could cash you out of it.
Michael Morrongiello
What about a sign? - Posted by Bud Branstetter
Posted by Bud Branstetter on January 31, 2000 at 22:44:08:
Sunday afternoon I had the wife babysit a house we had just closed on last Monday. No ads in the paper just a sign out front. Also an ugly yellow sign that said as is 76K and owner financing available. In a couple hours 6 people stopped by. Three are prequalified. One realtor even sent a contract over.(rejected because he wanted us to do lender required repairs for that price). I’m meeting 5 more people there tomorrow. Cash for down ranges from 4-8K so far. Your ad should say no bank qualifying or owner financing. One difficulty is that it is two family which is less liquid. You can advertize live free with reasonable down. You could even buy with a note yourself. Any thoughts on converting to single family and selling for the 50-65 range?
Re: No Calls On Ad! - Posted by Jim IL
Posted by Jim IL on January 31, 2000 at 20:59:07:
Annette,
Don’t be discouraged by the lack of calls, this was a weekend filled with superbowl parties, and not many people read the paper past the sports page.
Keep running the ad, and you will get calls.
My Sunday ads, usually get calls Tuesday thru Friday.
or
you could change up your marketing strategy a bit.
Go talk to a mortgage broker, and see what programs they have to offer for less than perfect credit. They may even have a buyer on hand looking for a home now.
Ask the broker about programs that allow you to carry a second.
If they have some, (most good brokers do) , then run another ad, like this;
NO MONEY DOWN!
Seller will assist with financing
(house description)
xxx-xxxx
Include flyers from the mortgage broker and yourself at the home for the buyers to take and look over.
Then, when a buyer appears and likes the home, get them to that mortgage broker FAST, and set the price high enough for the buyer to get a first loan to cover your price, cash in your pocket and costs, and carry the rest in paper as a second.
You will get CASH, and cash flow from this.
And,
if the buyer flakes, you can foreclose, and keep the first loan in place.
Since you are the seond lien holder, you have the right to keep the payments on the first up without assuming it.
Then, sell it again, and make more $$$!
Just my $.02,
Jim IL
P.S. Also when calling mortgage brokers, tell them what you have for sale, and what you need to get out of it, they may have a buyer on hand, and some are even investors themselves.
Re: No Calls On Ad! - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on January 31, 2000 at 16:28:06:
Annette, the Super Bowl may have had a negative impact on your ad (we never get ad calls during special event weekends like this), but ads do take time…
I don’t mean to rain on your parade, but most realtors (in Atlanta at least) won’t list a property that you simply have under contract…you have to own it, otherwise the Board of Realtors does mean and nasty things to the realtor.
Food for thought,
Joe Brillante