Suppose I want to sell a tenant occupied single family property FSBO, but there are 4 months left on the lease. The tenants won't buy and refuse to be "bought out" to leave early. How should I market this property?
It's just a run of the mill one year lease. I doubt the tenants would trash it, but you never know. I'm just wondering what kind of buyer wants to wait 4 months to take posession. Any ideas?
Ok, let me present this question a different way. I keep hearing gurus say that I can sell houses for over market value to people who won't qualify for loans, etc. Allright, so scrap the plan of trying to sell it (unsuccessfully) at thousands under market value. Should I put a bunch of signs in the yard advertising "lease option"? And if I do, what kind of price, terns, down payment, etc, should I try to get??? The house appraised a couple of years ago at 160k, and I owe about 133k. The problem with keeping it is negative cash flow. Z[ Edited by Zach on Date 11/29/2003 ]
How about selling it to your tenants on a Contract for Deed? Owner financed, and they can refi, say, in 2 years? Get a downpayment from them, and match the monthly payments to at least your monthly payments PITI.
I'm trying to do that now, but they just aren't serious. Yesterday, the neighbor, who I am friends with, told me she saw the tenants putting up landscape lights. But they won't make a deal with me!!! Even for 7k less than a 2 year old appraisal! I don't want to waste any more time with them. I'm thinking of a refi to lower the payment, raising the rent, and if that doesn't work (after I know the refi details) so I can make an even brake, I guess I'll just set it on fire. Seems to me this shouldn't be as much of a problem as it is. Should I just try to sell it outright and screw the tenants? Should I have the "It's not my problem " attitude? I'm really getting pissed about this. Z
If they don't want to buy it, can you wait out the 4 months? After that can you raise the rent to make it cash flow? Or, after the 4 months, sell it out outright. I think you are stuck with your renters until the end of the lease. After the lease expires, you should be able to change anything you want, sell the house, etc.
good luck...
Maybe you're right Webuy. I guess if I've stuck it out this long, I can do it for a few more months. And with realtors contracts being 90 days or so, I suppose I could list it pretty soon anyway. I don't like the idea of a $9k commission, and I know I could still go fsbo. Just seems like the wrong thing to do after learning as much as I've tried to about REI. Seems like if I do that, it makes me the guy the REI guy is looking for. Oh, well, I guess you have to know when to throw in the towel. Z
Quote:
... I know I could still go fsbo. Just seems like the wrong thing to do after learning as much as I've tried to about REI. Seems like if I do that, it makes me the guy the REI guy is looking for. Oh, well, I guess you have to know when to throw in the towel. Z <IMG SRC="images/forum/smilies/icon_cry.gif">
Zach, I don't know if it's too late (2:21am) or not but this quote had me in stitches laughing! I felt the same way before, I hated being a so-called investor and on one property I'm all of a sudden a motivated seller! haha.
but, don't sweat it if it's an investors deal. who cares who buys it, as long as someone does. just work it out so you break even or minimize your loss and keep rolling.
... and don't make me scream laughing that hard again, this late at night - my neighbors may call the cops.
If it's not too late, i.e., you've already solved your problem, here's an idea that I have used. Take the negative casflow and multiple it by 12, 24, 36 months etc. to arrive at a figure. Then go to an investor and offer $7,000 worth of equity for their $5000. Gives them profit plus tax benefits and you solve the problem
What kind of lease do they have?
I assume you're the owner. Sell it. Or are you worried they may do some damage to the property?
It's just a run of the mill one year lease. I doubt the tenants would trash it, but you never know. I'm just wondering what kind of buyer wants to wait 4 months to take posession. Any ideas?
Ok, let me present this question a different way. I keep hearing gurus say that I can sell houses for over market value to people who won't qualify for loans, etc. Allright, so scrap the plan of trying to sell it (unsuccessfully) at thousands under market value. Should I put a bunch of signs in the yard advertising "lease option"? And if I do, what kind of price, terns, down payment, etc, should I try to get??? The house appraised a couple of years ago at 160k, and I owe about 133k. The problem with keeping it is negative cash flow. Z[ Edited by Zach on Date 11/29/2003 ]
C'mon, people now, smile on your brother.
How about selling it to your tenants on a Contract for Deed? Owner financed, and they can refi, say, in 2 years? Get a downpayment from them, and match the monthly payments to at least your monthly payments PITI.
Ladybug
I'm trying to do that now, but they just aren't serious. Yesterday, the neighbor, who I am friends with, told me she saw the tenants putting up landscape lights. But they won't make a deal with me!!! Even for 7k less than a 2 year old appraisal! I don't want to waste any more time with them. I'm thinking of a refi to lower the payment, raising the rent, and if that doesn't work (after I know the refi details) so I can make an even brake, I guess I'll just set it on fire. Seems to me this shouldn't be as much of a problem as it is. Should I just try to sell it outright and screw the tenants? Should I have the "It's not my problem " attitude? I'm really getting pissed about this. Z
If they don't want to buy it, can you wait out the 4 months? After that can you raise the rent to make it cash flow? Or, after the 4 months, sell it out outright. I think you are stuck with your renters until the end of the lease. After the lease expires, you should be able to change anything you want, sell the house, etc.
good luck...
Maybe you're right Webuy. I guess if I've stuck it out this long, I can do it for a few more months. And with realtors contracts being 90 days or so, I suppose I could list it pretty soon anyway. I don't like the idea of a $9k commission, and I know I could still go fsbo. Just seems like the wrong thing to do after learning as much as I've tried to about REI. Seems like if I do that, it makes me the guy the REI guy is looking for. Oh, well, I guess you have to know when to throw in the towel. Z
Quote:
... I know I could still go fsbo. Just seems like the wrong thing to do after learning as much as I've tried to about REI. Seems like if I do that, it makes me the guy the REI guy is looking for. Oh, well, I guess you have to know when to throw in the towel. Z <IMG SRC="images/forum/smilies/icon_cry.gif">
Zach, I don't know if it's too late (2:21am) or not but this quote had me in stitches laughing! I felt the same way before, I hated being a so-called investor and on one property I'm all of a sudden a motivated seller! haha.
but, don't sweat it if it's an investors deal. who cares who buys it, as long as someone does. just work it out so you break even or minimize your loss and keep rolling.
... and don't make me scream laughing that hard again, this late at night - my neighbors may call the cops.
If it's not too late, i.e., you've already solved your problem, here's an idea that I have used. Take the negative casflow and multiple it by 12, 24, 36 months etc. to arrive at a figure. Then go to an investor and offer $7,000 worth of equity for their $5000. Gives them profit plus tax benefits and you solve the problem