Rehab not selling, what to do !!! - Posted by Christen

Posted by Christen on July 20, 2003 at 16:18:57:

With who, I can’t find anyone??

Rehab not selling, what to do !!! - Posted by Christen

Posted by Christen on July 19, 2003 at 14:48:00:

We have a rehab we paid 30k for and put 13k into it. it is absolutely beautiful!!! Worth abot 70K (that is wha it will appraise for) e listed it for 64, 900 we are in a hury and we need to close it up fast in order to get to our next project. @ down sides itis on a busy street and has a shared driveway. We never thought the shared driveway would be a problem because it is huge and the neighborslive i florida 8months out of theyear. we have it listed with a realtor, we movedthe price down to 59,900, and still no takers. it has been on or 2 weeks and it is a sellers market up here n Central NY. Any suggestions?

Re: Rehab not selling, what to do !!! - Posted by eric-fl

Posted by eric-fl on July 21, 2003 at 10:53:43:

You know, I keep hearing it’s a “seller’s market”, but my experience hasn’t been that. In my experience, moving real estate for a cash-out is often hard to move, because it requires people to make a DECISIION, which most people are not good at. Add to that, it sounds like you’ve got a typical real estate agent, who’s total sum of ideas is to lower the price, same as every other real estate agent. Shouldn’t he be out marketing to find buyers, holding an open house, showing the property, and encouraging prospects to make offers? Of course, but none of them ever do. Of course, you can’t really blame the guy - even at a full 7% commission, even if he “double dips” as both listing and selling agent, after he splits it with his broker, he’ll get $2271 BEFORE taxes, and he’s going to spend money out of that to market it? I don’t think so. Add to that, he probably offered to take even less (like 3 or 4%) IF he turns out to be the selling agent.

For my money, most real estate agents are worthless, especially in lower-priced properties, such as the one above. Consider, instead, how much marketing you could do yourself for that $5000 reduction in price you just authorized:

$500 (max) - “Listing only” entry in MLS
$200 - 100 bandit signs (order some corruplast, buy some stakes)
$100 - super nice yard sign, plus windows signs, flyer tube
$100 - color copies of information flyers, for flyer tube on sign, laundromats, grocery stores, etc.
$4100 left for media advertising (newspaper ads, t.v. cable channel, mailings, etc.)

Assuming you’re really priced on the market, get a mortgage broker lined up for “marginal” prospects, there’s all kinds of programs out there right now. Of course, if the house still doesn’t sell after all that, you’re out the marketing capital, but wouldn’t you be out anyway, by making the payments on an empty? At that point, the best exit strategy is to rent, and wait for appreciation and mortgage payoff to get your capital back.

And FYI, you CAN get the money out. I just refi’d a rental at about 120% LTV, at 7.9%, 30 year, last month. Even with the property being upside down, it’s still only a $100 negative cash flow at those rates, which I can more than absorb with all the equity I pulled out, and what the equity will be used for.

Re: Rehab not selling, what to do !!! - Posted by James Mc (IL)

Posted by James Mc (IL) on July 21, 2003 at 02:48:16:


Here’s what I would do. Provided all your info is real.

Take it off market. Get a real appraisal. Get your title company on the title work. - You’ll need it anyway and it’s cheaper to order it yourself just like the appraisal and if you, the seller, request it you will get a slightly higher value.

Put it out on a L/O or Sub 2 deal for about $75,000. That is if the apprasal comes in at 70 ish.

$2500 get you in etc…

One of your responders to this post can get you a easy 80 80% loan to value. Reread your posts and place a new post looking for lenders, this board is full of them.

It’s Possible to have money out in a week. BUT, it will take a couple weeks depending on how busy everyone is.

Good luck.

James Mc (IL)

Two weeks good gosh! - Posted by LeonNC

Posted by LeonNC on July 20, 2003 at 18:16:39:

What is the average time on market for a house in your neighborhood? Your realtor should be able to tell you that one. I’d say do all you can to get it sold but don’t give it away. It sounds like it’s almost payday so don’t push the panic button yet.

Good Luck,


Re: Rehab not selling, what to do !!! - Posted by miloneco

Posted by miloneco on July 19, 2003 at 18:32:31:

lease option it. Or Create a note and sell the note, Ever think your price may be too low? Its sounds funny but some people don’t feel like theey are getting value if they don’t pay a high price.

Re: Rehab not selling, what to do !!! - Posted by Arthur

Posted by Arthur on July 19, 2003 at 15:32:04:

Why not consider getting the driveways seperated…is that possible?

I would consider re-financing it and getting as much equity out of it as possible, and then renting it out. Even if you fiance it at 90% LTV, that would mean you would get $63k, more than you are asking for, plus it would be TAX FREE!!! meaning even more cash in your pocket. By renting, you could have the loan being paid off by someone else, $3k + whatever tax you would have paid on the profits from the sale at $59.9k

Re: Rehab not selling, what to do !!! - Posted by Christen

Posted by Christen on July 21, 2003 at 18:33:52:

I agree I could have put the money to much better use but I marketed myself for a week and got little response. I put an ad in the paper 1000 dwn with good credit. I was going to use a grant programand py the buyrs closing and down payment but I got very few calls.

Where do you cash out refi?? My poblem is lo loanamount hre n Central NY you can get a nice bread and butter home in a nice aea for 50K. 80% of that is 40 and that isn’t too attractive to lenders. Any suggestions would be grat. I know I woud do fantsticaly with lease options. I tried to do it with a 2 family in a low income area 40K was the selling price and I ws swamped with calls. In the 60-70K range it must be that “owner financing” nd “nothng down” just isn’t that appealing.

Re: Two weeks good gosh! - Posted by Brenda Whittaker

Posted by Brenda Whittaker on July 23, 2003 at 01:06:26:

Two weeks is nothing! Around my area six months is pretty good!! I bought a foreclosure that sat vacant for 18 months! Low wages in AZ is part of the problem.

Re: Rehab not selling, what to do !!! - Posted by Christen

Posted by Christen on July 19, 2003 at 18:36:00:

yes we think that is the exact problem. I have no note buyers I wouldn’t know what to do. from what I have been told the note buying industry has really dried up becasue the lenders are so much more lenient than they used to be.

Re: Rehab not selling, what to do !!! - Posted by Christen

Posted by Christen on July 19, 2003 at 18:34:13:

that would be great except if you have owned an investment property less than 1 year they go off the purchase price, not the appraised value. so I would get 80% of 30K, which wouldn’t really help much. If you know of a company that would do it let me know. We used to use wells fargo but they changed there policy as of April.

Re: Rehab not selling, what to do !!! - Posted by miloneco

Posted by miloneco on July 19, 2003 at 18:59:22:

you make the interest rate attractive enough someone will buy your note. Qualify them and get a good down payment , Cor b credit at 8 to 9 percent. Lease option whatis wrng with that? This one you may have to sit on for a year? Get a reappraisal pull equity out. Try a credit union if your bank is being a pain in the @%*.
Godd luck stay at it though. It will pay off.

Re: Rehab not selling, what to do !!! - Posted by James Strange

Posted by James Strange on July 19, 2003 at 18:58:13:

Since you have rehabed the property you can cashout refi up to 80% of the apprasied value.

James Strange