Tough decisions to make.....

[hatterasguy]

See if they stick around. Personaly I would have taken the $102k just to be done with it.

 

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[Russ H]

Me too. 100K, and get rid of it.

Of course, if your buyer is anything like we are, they'll do multiple inspections and then ask for more off-- yes, even w/"AS IS"-- b/c we tell them when we put in our as is offer, we had no idea of all the problems we found during dd.

(but hey, that's just our negotiating strategy).

We finally got called on this in our last deal-- seller agreed, but told us that selling price, credits, etc would not go below $XXXXXXX. Kind of wrecked our strategy.

Time to cook up another one!

-Russ H.

 

[hakrjak]

I do the same thing from time to time Russ, which is why I decided to try the as-is clause on this buyer. Got a feeling she's the type to want to beat me up for every cent.

- Hakrjak

 

[hakrjak]

See if they stick around. Personaly I would have taken the $102k just to be done with it.

Well if ths deal falls through, I can probably still accept that offer... It sounds like she really likes the place, or she would have truly bailed when I rejected her $95k offer.

- Hakrjak

 

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[Russ H]

BTW, Hak, we do lowball offers on 150-300 DOM props all the time. We put them in a few days from the end of the month (when the seller is paying their mortgage).

We'll sometimes even use different buyer names to put in offers on the same property. If the seller keeps seeing offers coming in that are, say, exactly $30 or $40K below what they'll take, after a few months of this (and no other offers), they usually wise up.

Of course, there are always the "permanently on sale" props, that no realtor even takes seriously (things listed for too much on the MLS, hoping to find that one special sucker . . . ). Always gotta laugh at those!

-Russ H.

 

[rcardin]

Even at the low ball offer of 94.5k would you make a profit?
Is it worth holding out for another 2 months to make another 5k on the house minus holding expenses? Sounds like something to be sold for any profit available.

 

[hakrjak]

Even at the low ball offer of 94.5k would you make a profit?
Is it worth holding out for another 2 months to make another 5k on the house minus holding expenses? Sounds like something to be sold for any profit available.

Nope... At $94.5k I would have lost about $5k... I've got them up to $102k right now... Waiting for a response still on my $104k/as-is counter. That will put me slightly above even. I might even make a K or 2.

I dunno, I hate having to sell a house for less than what I think it's worth. I still genuinely feel like this one was worth $120k... But sadly did not have the cash reserves in the current environment to sit on it for an extended period of time.

That's the difference between my business and some others right now that seem to be doing better... Cash on hand... The less cash you have, the more of a position of weakness you are bargaining from....

Cheers,

- Hakrjak

 

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[Russ H]

That's the difference between my business and some others right now that seem to be doing better... Cash on hand... The less cash you have, the more of a position of weakness you are bargaining from....

Amen to that, bro.

-Russ H.

 

[hakrjak]

Latest update... they agreed verbally to my $104k/as-is offer... Now just waiting on the written contract. Will believe it when I see it!

At this level I think I make about $2500 for 6 months work... Wow, that's the hardest $2500 I've ever made!

- Hakrjak

 

[MJ DeMarco]

Congrats, keep us posted. The buyer sounds like a RPITA!

 

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[LagunaLauren]

dbaker-You may be able to do an AITD and/or assume a loan that is currently on a property from the current owner. (Basically you takeover the note and make the payments). Or you may be able to get financing from the current owner or have them do a "wrap mortgage", where the current owner keeps paying the bank and you pay the current owner. Be careful, though, most lenders don't like wrap mortgages and may have a "due on sale" clause on the loan where the note would be due if they find out about a wrap. Not sure what bank requirements would be for REO props they have in inventory, but they're prob not as strict as conventional lenders. There are a lot of people that need to sell their property now so there are a lot of options for you to get a property without conventional financing. I'd sell you one of my investment props if you were in Dallas!:smxB:

 

[hatterasguy]

Latest update... they agreed verbally to my $104k/as-is offer... Now just waiting on the written contract. Will believe it when I see it!

At this level I think I make about $2500 for 6 months work... Wow, that's the hardest $2500 I've ever made!

- Hakrjak

Congrats!

Looking back from my perspective you should get these cheaper in the future to leave yourself more room.

You really need to be able to be into these for $75k-$80k, total. So stuff can happen and you will still be OK.

 

[hakrjak]

Update: Buyer seems to have wandered off into the weeds and hasn't been heard from in days... Sounds like she changed her mind to me.

Bleeding cash like a hemmorage over here now... Thinking I need to go ahead and find a $70k loan to consolidate all my short term debts on this one into 1 long term loan for a lower payment. The monthly output is pretty nasty, and with zero coming in from this property it's becoming an alligator.

Anybody out there willing to loan private money on this one? I have perfect credit, 6 figure net worth, and a full time W-2 job with 12 years of experience. Drop me a line

- Hakrjak

 

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[hakrjak]

Just got a call from a couple of hard money lenders... Seems like their deals are averaging: 5% points up front (To be rolled into the loan) + 12% interest only over 2 years, then a balloon at 2 yrs.

Hmmmm, should I do it?

Currently paying out about $1050 per month on my short term credit lines to finance this thing, P&I... By my calcs 12% I/O would be $730 a month... Saving me about $320 a month... I can refi into a traditional Fannie/Freddie loan in 8 months -- but I'll have to pay probably 3% closing costs again....

Sounds like a really bad deal, but what other choice do I have? Hmmm... Maybe rent it out and lose a few hundred a month for 8 months, then refi into a Fannie/Freddie loan.... Have to really price this out hard...

Cheers,

- Hakrjak

 

[rcardin]

It might be worth it to go ahead and refi the loan through a hard money lender. Get the payments down temporarily. REfi in 8 months into a conventional loan. In the mean time see if you can rent it for 950/ 1 year lease with the option to show the property after 8 months. This gives you 220 a month cashflow to pay for the refi with. Most importantly though it opens the line of credit back up. Those are hard to come by these days.

 

[hakrjak]

It might be worth it to go ahead and refi the loan through a hard money lender. Get the payments down temporarily. REfi in 8 months into a conventional loan. In the mean time see if you can rent it for 950/ 1 year lease with the option to show the property after 8 months. This gives you 220 a month cashflow to pay for the refi with. Most importantly though it opens the line of credit back up. Those are hard to come by these days.

Thanks for the reply man.... Yes I'm wrestling with this idea right now... You're speaking the truth on the lines of credit... I only have 1 left open, and on the path I'm going on I will be broke in about 2-3 more months. I'll have to start paying my bills with that credit line by then. Once that is exausted, I'm bankrupt.

I've definitely come a long way down in 6 months!

- Hakrjak

 

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[hatterasguy]

What if you sold it at or below cost? What about putting it on the MLS for $95k just to get rid of it?

Seems like your risking a whole lot to try and save a couple grand. Personaly I'd do whatever it takes to dump that thing, and move on. Your going to make more money over the next few months taking a hit on this one and moving onto a more profitable property, than by trying to string this thing along.


As the song goes, you have to know when to fold them.

 

[Russ H]

I just figured she was going to wait until the end of the month and lowball you, as we discussed earlier!

-Russ H.

 

[kwerner]

Hak - I'm praying for you man. Sometimes when I feel like I've done all that I can to make a situation better (on my own) and it still isn't making an improvement, it's just better to give it up to the Man Above - put it in his hands to make things right.

 

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[hakrjak]

Thanks all... I've decided to drop the price again in the morning.... It's gone from $125k, to $120k to $112.5 to $109 to $105, and now it's going to $99.9k...

Let's hope this will be the magic #!

I've decided that losing $5, 10, or 15k is worth keeping my good credit and NOT having to declare bankruptcy or do anything crazy here....

Thanks to J Scott for helping me get my head on straight!

- Hakrjak

 

[tbsells]

Thanks all... I've decided to drop the price again in the morning.... It's gone from $125k, to $120k to $112.5 to $109 to $105, and now it's going to $99.9k...

Let's hope this will be the magic #!

I've decided that losing $5, 10, or 15k is worth keeping my good credit and NOT having to declare bankruptcy or do anything crazy here....

Thanks to J Scott for helping me get my head on straight!

- Hakrjak

I think this is the right thing to do. Good luck.

 

[kwerner]

Just wanted to drop a line and say congrats on selling the house!

 

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[EastWind]

decluter the house, have you seen them sell houses on TV? stage with what you have! good luck with your sale!

 

[hakrjak]

Thanks ya'll... Dumped it, and even have about $15k left over after the transaction was done, so I only lost about $5k. Going to build my seed money back up to $50-$100k over the next little while and dive back in again as soon as possible.

Cheers,

- Hakrjak

 

[Russ H]

Thanks for the update, Hak.

Good to see it's not hanging around your neck anymore!

-Russ H.

 

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[Strategy]

congratulations on handling that. I know times like that are very stressful situations when you no the wrong move or no move at all can end everything you've worked for.