Advice on Stagnant Properties for Sale

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Advice on Stagnant Properties for Sale

Arron Paulino
Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes

Has anyone ran into stagnant properties that just take forever to sell? I ask since I have two properties that I really have a hard time moving. One has squatter issues that I constantly have to deal with, and the other has a mortgage higher than the sales price, so I am thinking of going the short sale route or deed-in-lieu, but I do not have experience with either avenue. The first one is free and clear, so at this point, I may just want to move on from it and sell it for anything, but I don't know what to do. Ideally, I was trying to sell the first and essentially break-even selling the second by utilizing the funds from the first for anything due at closing. The original plan was to have these as rentals, where I did rehab them once I got them, but that was a year or two ago. Is a fire sale of some sort worth doing just to move on with property one? Any advice on what I should do?

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  • Greg ParkerBusiness Member
    Realtor, Contractor, Property Manager · Montgomery AL and Kowaliga, AL · Member since 2017 · 663 posts · 536 votes
    1y

    Thats a tough situation.  Maybe try a slow flip and find an eager partner with a little rehab money.

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    MGM Property Pros LLC
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    • Arron Paulino
      OP
      Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
      1y
      Quote from @Greg Parker:

      Thats a tough situation.  Maybe try a slow flip and find an eager partner with a little rehab money.


       I agree. It's been tough and at this point I am just looking to move on. What do you mean by slow flip?

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    1y
    Quote from @Arron Paulino:

    Has anyone ran into stagnant properties that just take forever to sell? I ask since I have two properties that I really have a hard time moving. One has squatter issues that I constantly have to deal with, and the other has a mortgage higher than the sales price, so I am thinking of going the short sale route or deed-in-lieu, but I do not have experience with either avenue. The first one is free and clear, so at this point, I may just want to move on from it and sell it for anything, but I don't know what to do. Ideally, I was trying to sell the first and essentially break-even selling the second by utilizing the funds from the first for anything due at closing. The original plan was to have these as rentals, where I did rehab them once I got them, but that was a year or two ago. Is a fire sale of some sort worth doing just to move on with property one? Any advice on what I should do?

    The way to move hard to sell property is to expand the buyer market to people who don’t qualify for financing, or if the subject property is hard to finance, this works as well:  SELLER FINANCING.  WRAP AROUND MORTGAGE.  SALE LEASEBACK.  
    Private Mortgage Financing Partners, LLC
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    • Arron Paulino
      OP
      Rental Property Investor · South San Francisco, CA · Member since 2019 · 262 posts · 95 votes
      1y
      Quote from @Don Konipol:
      Quote from @Arron Paulino:

      Has anyone ran into stagnant properties that just take forever to sell? I ask since I have two properties that I really have a hard time moving. One has squatter issues that I constantly have to deal with, and the other has a mortgage higher than the sales price, so I am thinking of going the short sale route or deed-in-lieu, but I do not have experience with either avenue. The first one is free and clear, so at this point, I may just want to move on from it and sell it for anything, but I don't know what to do. Ideally, I was trying to sell the first and essentially break-even selling the second by utilizing the funds from the first for anything due at closing. The original plan was to have these as rentals, where I did rehab them once I got them, but that was a year or two ago. Is a fire sale of some sort worth doing just to move on with property one? Any advice on what I should do?

      The way to move hard to sell property is to expand the buyer market to people who don’t qualify for financing, or if the subject property is hard to finance, this works as well:  SELLER FINANCING.  WRAP AROUND MORTGAGE.  SALE LEASEBACK.  

       I have received seller financing offers, but they ask for way too long of a time period. Hence, I have resorted to cash only as I don't want to be attached to the property after the sale.

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