OfflineMy Current Flip Has been on the Market with a Realtor for 6 months with no offers... It is a 3B, 2 1/2 Bath SFR, in a beautiful Development in Winslow TWP, NJ... Unfortunately, about 8 Short Sales have sold Since I purchased the Property Dec. 2010 and has brought Home Values Down to the point where The profit margin would be less than 10K and times a wasting... I would than need to split the ?profit? with my partner who did all the rehab (I am mostly just the money man)... So for my partner it would be a big flop instead of a nice flip... Our ReHab's are thorough and we use higher than builder grade materials so we can get market price but quicker... We are thinking about renting or offering a Lease Option (L/O) and have ZERO experiance with either... Our Goal is to sell this property...
Any guidance would be greatly appreciated...
Thanks,
Dan (Mcarlo24)
Currently on 3rd Flip
Lease with option to buy would be a great way to get some money back on your prop. You can get full retail for the property, without paying an RE agent.
The option to buy can be for 1,2 or 3 years. You are going need a lease and an option agreement as well as a purchase contract. Set the price for your house, set the rent and decide what you would like to get as option consideration (down payment) and start marketing. The rental market is huge right now. Have your applicants talk to your mtg broker so he/she can tell you who has a chance of getting a mortgage and how long it may take. Set the time frame for the option (same as lease) and offer an option to renew if they are unable to perform in the alotted time, but with the renewal (say after 2 years)you have the option to increase rent or price based on the market. People still want to live in their own home, so you will have many to choose from. They just need time to get their act together. Good Luck.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Hi. What's the address/MLS #. I'll blast it out to my buyer's. PM me. I'll see what I can do.
Thanks.
Kim
My family is why I do this, for my wife and my 2 boys - Nay, KII and NiK. Without you, my life would be meaningless.
For taking the time regarding my situation and pointing me in the right direction... We did recieve our first offer but it was to, to low so we are closer to becoming landlords... I like the Lease Option to Purchase better than a Flat out rental... Do you tend to get more responsible folks Leasing W/ Option than renting? As far as the OPtion Consideration (down payment), Is their a certain percentage of the total value that you ask for? And are these funds mine to spend?
Thanks,
Dan (Mcarlo24)
rent it asap.
Winters a coming and those heating bills will eat up whatever profits you are expecting.
Whats the demographics of the area and where exactly is that???
The option payment is non refundable but usually applies to the purchase price.
I would not want to do a straight rental either. Your nice rehab most likely would not look so nice after having tenants in there.
You might consider taking the $10,000 profit today if you could get it sold. Not every deal can be a home run. At least it won't be a loss!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
The development consist of ~300 15-17 year old SFR, 3-4 bedroom homes in the 1800 to 2000 SqFt range... It's adjacent to a smaller development with bigger homes... 1 minute from Expressway to the shore, Major Shoping Center and a Park... It's located at Brearly Dr Sicklerville, NJ 08081...
Thanks,
Dan (Mcarlo24)
Look for a buyer and look for tenants
You don't want to go full steam ahead on just trying to find a buyer and assuming it will take 45-90 to sell, you're still shelling out even more money with the weather getting worse.
Put some ads in CL for renters as well as ads for buyers.
You say you're close to the shore; that ocean breeze brings with it a cold breeze as well.
I have an important update.. Just talked to my realtor about an hour ago and someone from Out of State (New York) came and saw the property... They are able to buy my house but are unsure of the area... My realtor asked me if I am willing to lease it to them for 2 years with no OPTION TO PURCHASE at this point... I have questions for my realtor but I wanted to bounce them off someone with more experience... Questions like: If we sign a lease through the realtor and the Lessee's decide they like the area and want to purchase the house, will I be obligated to go through the realtor for the purchase? Beings it is just a lease, can I get a down payment or can I ask them to pay my realtor fees which is a month’s rent or maybe a 1 1/2 months? In a lease, who is responsible for maintenance to the property? In talking with my realtor a day or so ago about Lease w/ option to purchase and setting a price that he wouldn't do it that way "because of the uncertainty in market and setting a price now may not be fair for either parties 2-3 years from now"... Is that some kind of angle he's playing to try and get his hands on the Commission when I sell it?
I know it's a lot and any feedback is much appreciated!
Thanks in advance all!
Dan (Mcarlo24)