House With Little Equity! Help!
Hi, I have a house in Texas, which is a 4 bedroom/2 bathroom and is worth $154,000 and the remaining mortgage is $149,000. Its a nice new house (less than 4 yrs old). Please let me know if there is any way I can make money off of this. Thank you
don't follow are trying to buy the place or sell it?
if it's buy, a short sale is one.
Im looking to sell it.
other than 154-149 as profit, I don't see anything.
Other have ideas?
A friends did REALLY want to sell his house, but do to a breakup felt he need to sell it.
He wanted 600 so he listed it for 700. It lasted 3 days on the market.
Where in Texas is the house located? I don't think you will make any money (probably lose money) if you attempt to sell conventionally, especially though a realtor. If you don't mind keeping the house, you could try to lease option or rent it out.
Unfortunately, since you are out of state a property management company would be prudent, which tend to charge 6-10% of the monthly rent. I've always thought it was rediculous...
Anyhow, I live in Dallas and if it happens to be in my city I would be happy to run a free CMA for you and tell you where you stand, provided I pass my exam on Wednesday
-Chris
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Buy the house subject- to, with an small down payment or consideration. then sell with a much larger down and add more to the equity .
Tell us more. What do you want to see happen here. Are you trying to sell to an investor or are you trying to retail the property. You are not specific enough for us to be of help. Tell us and maybe we can help. Good Luck.
Dave
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Sorry about that. I wasnt sure how much info to put here. I am trying to see if its best to sell to an investor or if I should put in someone to do a rent-to-own so that I can build some equity over a year or 2. Please let me know what you think would be the better idea. It is under a land trust.
LGN:
Why dont you sell it on a lease option to somebody at 10% above the present market value. You could also ask them for around $5k down. You would be surprised how many people out there want to own a piece of the American Dream. Make sure they have decent credit so they can perform in a year or so.
Best Riches,
Jeffrey Adam
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If you control this property, "you" are in the driver seat. It would be unfair for us to make the decision of whether you wholesale it or retail it.
The previous poster's advise to find a TB and do a L/O is some good advice. It's only the right advice, though, if you are convinced that you want to hold the property and deal with renters. Yes, I said renters. They are renters up to the time they really buy it.
If you just want to move it for a possible profit now then there may be someone in this forum who may be interested, it's your call. Good Luck.
Dave
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The only problem with L/O is the lack of T/B in the Dallas area with cash for the option. I can't comment on the whole state, but this is defenately not California. I had a house up for L/O and ended up selling it conventionally just to dispose of it.
-Chris
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Live long and be profitable![ Edited by c-brainard on Date 05/30/2004 ]
Same in Oklahoma, c-brainard.
Healthy option considerations are lacking. So I get $1,000 option fee, plus first and last month's rent, and educate the tentant/buyer that it will be okay. Their below "minimum option price of $2,000" is fine if they can afford to add the remaining amount to their monthly payments, an extra $83 a month to own the American dream, without neighbors on the other side of both walls.
We're talking 40-85K homes in SW Oklahoma, which I'm guessing is 60-115 in Dallas. Small margins, but my payments are low, too, and I really help youngsters get into their own home. I'm too new to see them move up, but it will happen soon. Some will ask me advice on selling their home, I'm expecting.
Today's consumer really expects No Down loans, as if they're all Veteran's, and many are unprepared even for closing costs.
Alan
Glad I found someone who agrees with me
The home prices in Dallas for "starter homes" range from 80k-130k and option fees of 2k seem fairly common. This is defenately a far cry from the 3-5% you're supposed to get according to the gurus. Rent rates are also in a slump, which increases the potential for negative cash flow. This technique can still be utilized as long as you buy right, however, I see a lot of marginal wholesale deals that I wouldn't touch with a 10 foot stick.
-Chris
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Live long and be profitable![ Edited by c-brainard on Date 05/30/2004 ]
Hey guys whats going on? I just found a buyer for $157,000. A nice little profit but nothin major. Thanks again for all the help.