Need Help Selling Porperty

[Mitusa]

I have a home in a small town north of Houston. I purchased for cash and did a complete rehab on it. Most of the houses in the area are low income but well kept except the property directly across the street. I have listed the house with a realtor who said that the couple of people who looked at it were turned off by the property across the street. I have had at least three dozen people however who have asked if I would finance or rent the property which I don't wish to do. The realtor has no creative suggestions on how to market and sell this property. Any suggestions on how I can get this property sold?

[Clint]

Offer the financing, and sell the note immediately upon closing. Micheal Moringello (SP?) is one of the people who do this.

email him: mikem@sunvestinc.com


Best of Luck.

Clint

[Jnazareno]

I have a home in a small town north of Houston. I purchased for cash and did a complete rehab on it. Most of the houses in the area are low income but well kept except the property directly across the street. I have listed the house with a realtor who said that the couple of people who looked at it were turned off by the property across the street. I have had at least three dozen people however who have asked if I would finance or rent the property which I don't wish to do. The realtor has no creative suggestions on how to market and sell this property. Any suggestions on how I can get this property sold?


if you don't need the money now, why not rent it?

[dealmaker]

Have you approached the people across the street? If it's that distressed looking it may be a "selling signal". If it's in an incorporated town, or a deed restricted community get on the code enforcement folks. I realize this doesn't work in many areas here in TX.

I hope you didn't improve the property beyond the surrounding market! I've been guilty of doing that a couple of times. In one case while I was doing the rehab I worked with the 4 nieghboring owners in our little enclave to spruce up the exteriors. The worst one was a rental and I pointed out to the owner that she was hurting her own rental rates with poor curb appeal. She spent a few hundred and recouped that on her next renter change. On the worst yard I took my chain saw and my helper and we whacked the heck out of the trees for the elderly, incapable owner. That cost me about $100 and a day of my time.

One guy had a junker car sitting in the yard along with a couple of old sofas. I told him my (non-existent) son was looking for a project car like that one and offered him $100 and I'd tow it away. I paid him the cash, told him I'd tow it when I got the time. One day when he was out we hooked onto the car, loaded up the dead furniture and took it all. He never complained about the junk.

Of course if a place isn't moving IT'S THE PRICE. I always tell myself, "If I cut the price to ONE DOLLAR, I'd have lots of offers, so that's the bottom. No offers at this price means I'm past the top, so I have to cut the price until I'm close enough to the top to get offers.

I just did a light rehab that I thought I'd get close to $80K for, since I'd recently sold a similar place three blocks away for $82K after a major rehab it seemed reasonable. Since my ads always real along the lines of, 3/2, OWNER WILL FINANCE WITH $2,000 DOWN, my phone will ring off the hook. Unfortunately gas has gone from about $1.55/gal to $2.65/gal since the last sale. I started at $82,500, after one week I went to $75K, the next week to $69K, the next week to $65K and this week to $59K. We're in a very small market and the Wednesday edition of the paper is free to every house. So I figure I'm getting 100% exposure to all lookers every week. I was getting calls and my "sign rider" was dispensing 5-10 info sheets a week, BUT I HAD ZERO SHOWINGS, until I cut the price to $59,500. I had two showings last evening and one scheduled for today. It's not just about the house across the street, it's always about the price IN LIGHT OF THE HOUSE ACROSS THE STREET.

dealmaker

[Jnazareno]

Have you approached the people across the street? If it's that distressed looking it may be a "selling signal". If it's in an incorporated town, or a deed restricted community get on the code enforcement folks. I realize this doesn't work in many areas here in TX.

I hope you didn't improve the property beyond the surrounding market! I've been guilty of doing that a couple of times. In one case while I was doing the rehab I worked with the 4 nieghboring owners in our little enclave to spruce up the exteriors. The worst one was a rental and I pointed out to the owner that she was hurting her own rental rates with poor curb appeal. She spent a few hundred and recouped that on her next renter change. On the worst yard I took my chain saw and my helper and we whacked the heck out of the trees for the elderly, incapable owner. That cost me about $100 and a day of my time.

One guy had a junker car sitting in the yard along with a couple of old sofas. I told him my (non-existent) son was looking for a project car like that one and offered him $100 and I'd tow it away. I paid him the cash, told him I'd tow it when I got the time. One day when he was out we hooked onto the car, loaded up the dead furniture and took it all. He never complained about the junk.

Of course if a place isn't moving IT'S THE PRICE. I always tell myself, "If I cut the price to ONE DOLLAR, I'd have lots of offers, so that's the bottom. No offers at this price means I'm past the top, so I have to cut the price until I'm close enough to the top to get offers.

I just did a light rehab that I thought I'd get close to $80K for, since I'd recently sold a similar place three blocks away for $82K after a major rehab it seemed reasonable. Since my ads always real along the lines of, 3/2, OWNER WILL FINANCE WITH $2,000 DOWN, my phone will ring off the hook. Unfortunately gas has gone from about $1.55/gal to $2.65/gal since the last sale. I started at $82,500, after one week I went to $75K, the next week to $69K, the next week to $65K and this week to $59K. We're in a very small market and the Wednesday edition of the paper is free to every house. So I figure I'm getting 100% exposure to all lookers every week. I was getting calls and my "sign rider" was dispensing 5-10 info sheets a week, BUT I HAD ZERO SHOWINGS, until I cut the price to $59,500. I had two showings last evening and one scheduled for today. It's not just about the house across the street, it's always about the price IN LIGHT OF THE HOUSE ACROSS THE STREET.

dealmaker


LOL - that's one cool idea/trick to know :SM054:

thanks

[Mitusa]

Offer the financing, and sell the note immediately upon closing. Micheal Moringello (SP?) is one of the people who do this.

email him: mikem@sunvestinc.com


Best of Luck.

Clint

If I owner finance don't I run a risk of not being able to sell the note? Also I am a :SM021: so I don't know much about selling notes. Why would the note buyer just not finance the property for a buyer? Why have someone else go through the closing and then buy the note?

if you don't need the money now, why not rent it?

I don't have the resources to rent, but thanks for the suggestion.


Have you approached the people across the street? If it's that distressed looking it may be a "selling signal". If it's in an incorporated town, or a deed restricted community get on the code enforcement folks. I realize this doesn't work in many areas here in TX.

I wish the person across the street were interested in selling. I have asked, she is staying put. Boy are you right about unincorporated towns in Texas. I live in an area of $250,000 homes and none have curbs, we all have ditches in front of our homes.

Of course if a place isn't moving IT'S THE PRICE.

dealmaker

I think you may be right. I am going to try working on this. Thanks for everyone's help. :grin:

[landtrustwizard]

I have an alternate suggestion for you. Rather than give a long detailed explanation, I can refer you to my website which you can review and then get back to me if you have any questions. ForSaleByOwnerPro.com (http://forsalebyownerpro.com) . Good luck to you.

[Dan Auito]

Hey Wiz, don't be bashful go ahead and let a little of that info out of your bag of tricks right here!:praise:

[CharlesParrishdotcom]

Is your property listed at top price, or priced for a fast sale? Just kidding, I know if you have an agent, it is listed at the upper market price. Yep, maybe that is the problem.

Recently I sold a property using the SEALED BID AUCTION method of marketing. We sold it at price I was satisfied with in 5 days for all cash, no commission, no settlement cost and AS IS CONDITION.

Run an ad (the ad should be a display ad. SEAL BID PUBLIC AUCTION, describe the property, best price above $99,000 (this is your reserve and this price is less than retail) all bids open Friday at 12:00noon. Have the terms in the paper also. Hold 2 open houses, register all that show up, and give them a one page contract. Collect a $1,000 check, to be increased to 10% of their offer if they are the highest bidder. Settlement to be in 30 days. You should be able to create a bidding war. Make sure you cancel your listing (or you will be paying a commission). You need directional signs and property signs (they must be professionally designed)

You did not say what your motivation is, do you need the money, and are you going to re-invest or blow the money on bills and fun things. Are you going to pay your licks in Capital Gain Taxes, can you qualify for a 1031 Exchange?

If you are going to continue to invest, I would suggest you do a 1031 Exchange. Let me know if you need someone to help you with this.

If you take back paper, do split notes and use them for downpayments on other investment properties. e.g. If you take back $50,000, make it two notes of $25,000 each. Use them as downpayments on other suitable real estate.

You said it; the agent has NO CREATIVE ideas, Da! Try the sealed bid auction sale, you can do that yourself with some help.

Consider the live out-cry auction. Have an auctioneer sell your property. (Warning: you need a GOOD auctioneer, not one that sells pots, pans and carpet; you need a pro, a closer to get the job done) You see buyers bidding against each other, not against you. And this is a good thing…..auctions are great.

By 2007 over 15 Billion Dollars of real estate will be sold in the US according to the National Auctioneers Association and Realtors Association.

Charles Parrish

[Mitusa]

Charles

I am going to reinvest. What is a 1031?

[CharlesParrishdotcom]

James Brennon, Esq. can better give you the details you need. He has a website also, call him at 888-814-1031. He will be speaking at my REIC, try to visit;

INVESTORS CLUB Meeting, PUBLIC INVITED. Free. Seating limited. Saturday, Sept 3rd, 10-12:00 noon. Learn from James Brennan, Attn, Exchanger & qualified intermediary, how to avoid capital gains, make and save thousands of dollars in real estate. Listen to his insider techniques of creating & managing equity. Come net-work & join Charles Parrish’s Quick Pitch Program, 410-426-6000, investorsunited.com. 6721 Harford Rd, Balto., Md. Exit 31A off 695

Good luck, Charles Parrish

[Jnazareno]

Charles

I am going to reinvest. What is a 1031?

Here's Googles Search Result for 1031 ...

http://www.google.com/search?hl=en&q=how+do+do+1031

[Tom Henderson]

I have a home in a small town north of Houston. I purchased for cash and did a complete rehab on it. Most of the houses in the area are low income but well kept except the property directly across the street. I have listed the house with a realtor who said that the couple of people who looked at it were turned off by the property across the street. I have had at least three dozen people however who have asked if I would finance or rent the property which I don't wish to do. The realtor has no creative suggestions on how to market and sell this property. Any suggestions on how I can get this property sold?

Hello Mitusa...

My name is Tom Henderson. I am from Dallas and have been buying notes since 1980. You might consider owner financing and either sell the note at closing, or maybe keep the note.

If you go to my website, www.hpnotes.com, click on the NEWSLETTER icon. Go to the archives for Oct/03. I wrote a series of articles on HOW TO STRUCTURE A NOTE TO SELL AT CLOSING. This will give you some insight into what you can expect when selling a note.

Remember, the more the down payment, the more money in your pocket. Also get the buyors to fill out a loan application, as well as get their own credit report. If you see the buyers are not credit worthy, you might want to move on. If you email me, I will be happy to send you a form 1003 or a loan application form.

Here is what I advised my sellers to do. Have the buyers fill out a loan application form. The get a contract spelling out the terms. Make the terms reasonable. 30 years @9% is sufficient. Put into the SPECIAL PROVISONS part of the contract, that this contract is subject to your being able to sell the note at a price acceptable to you. That way if you do not like what you note is worth, you can back out of the contract. Fax the contract, loan application, and the credit report to me, and I let you know within 1 day exactly what your note is worth. I can also then offer suggestions as to how you might tweak the note to get maximum value.

If you would like to contact me to discuss your particular sitation, feel free to do so.

Hope this helps.

Tom Henderson
H&P Capital Investments LLC
214.575.8292
1.800.481.6588
tom@hpnotes.com