IS this a deal that can be solved?
OK -- this is going to be long and winded, but no other choice.. I need to know if this is a deal..
A family member of mine got in some trouble so we helped them out so far..
he deeded the property over to us, we recorded it in the courthouse.
house retail market value 330k
back payments and taes were 17k
we paid them..
There are two loans on the property totaling 200k. We are making the monthly payments.
The family membet moves out on april fifteenth. The house is older and needs about 25k- 50 in updates. (it is a 5 bedroom).
I am going to try to run an ad in paper and post a FSBO sign, but anythign else I can do to be creative? I need major help here. This family member we have given most of their equity to ahead, and then they get more when the sale is done..
WHAT TO DO???? 
"house retail market value 330k"
"The house is older and needs about 25k- 50 in updates. (it is a 5 bedroom)."
Sounds like you are doing what needs to be done. I'm confused, though. I don't know what you mean by 'retail' value.
I've known a few people to use that expression, but as an appraiser of real estate, it has no meaning to me. What does it mean?
What would the house be worth if the repairs were made? It might be worth it to effectuate the repairs, then market the property at it's enhanced value.
Retail value means (to me) after the repairs have been made. I know we can get more for it after the rehab, however we have spent so much out of pocket already, I would just like to unload. However we have already invested 100k... so we need the house to sell no less than 300k... any ideas?
I'd list it with an agent for starters and see what turns up.
if that didn't work out I'd place an Ad in the paper saying we offer financing and L/O that bad boy.
This would be sweet if you could match the potential buyer up with one of your private lenders if they couldn't get a conventional loan.
Future- what does that mean exactly?
This would be sweet if you could match the potential buyer up with one of your private lenders if they couldn't get a conventional loan.
As an investor over time you should have ran across a couple of private lenders (regular people who have surplus money to loan out) who can fund you at least 75% of the purchase of your deals. This is a Steve Cook technique (Steve Cook is a master wholesaler) he would put properties under contract and try to sell them. If the new buyer/investor couldn’t get financed SC would take the buyer to his lender provided the buyer/investors credit satisfied the private lender (basically showed he could make payments). That way Steve Cook could control the whole process and become the bank in a sense. He’d find the properties and offer financing and eventually word got out that he would flip to you and find you the money you need to make the purchase.
In your case the buyer may or may not be able to get the loan (I pray they can so you can get paid). If unsuccessful that route you could take them to your private lender and get them financed for a major portion of the 300K. You could take back some financing for the rest of the money.
Thanks for the response. I do not have a buyer, I am going to run a open house as is. Any tips for running an open house?
Congrats on your endeavor thus far. Good luck on the open house.
Here are my pennies:
Open house should be on Sunday
Some people like to hold open houses for a small time window (about 3 - 4 hours) they have claimed that this technique plays on the urgency of other buyers. it's a simple theory, by having so many potential buyers meeting at once, it fosters more intense motivation.
Watch out for the kids! i have learned from some other investors about liability issues. Don't let kids roam unattended by an adult around the property.
I'm kinda sick today....so I'll cut this post short.
Congrats on your deal,
Vis
Rent out all the bedrooms and then sell it as an income producing property to an investor.
College Town ...Maybe?
I do not want to rent out this house.. However I am going to take all of your tips and make the house smell nice, and run an ad in the paper... I have studied others, Thanks for the replies and anything else you all think of. LET ME KNOW!!
Maybe I'm confused over what you have done so far but it sounds like you have a skinny deal here. You say you need at least $300k to break even. FMV after fix up is $330K. = 10% equity which is not a lot of money. Does the $300k sales price includes all your closings costs, sales commissions and price concessions to the end buyer? Here in my area sales of these "mid-luxury" homes have taken a real beating the last couple years.
I know it's a family member but I would have told them I'd split the profit (if any)on the back end after the house sells.