How to liquidate non-selling properties?

Question

Hello fellow investors!

We have some fully remodeled properties in Houston, TX that been on the market for longer than we want.

What are the best ways to liquidate them and get them off the books without leasing and refinancing?

Selling on terms? How do you structure it?

Thanks!

Wayne Brooks · Answer

1) Lower the price

2) See #1

Jay Hinrichs · Answer

OK here is what I did in some semi tough times.

I offered ZERO interest financing  I just sold a rental last month doing this..

I get top dollar and carry contract for a few years with a balloon and payments high enough that the buyer wont walk and I get a decent downpayment.. Now before all the CPAs jump on me.. Yes there is imputed interest you would owe..

but for me its better than taking a bath on cash price..

Or in my Timber days I did this.

I bought say a 100 acre tract for 500k.. I pulled 600k NET to me off the tract when I sold and delivered the logs.. now I own the property free and clear.. but I only made 100k so far.. now the property is worth 250k as a building site.. I sell on terms with say 10% down and carry for 5 years at what ever rate pick one 6%.. so then I take that note and I hypothecate it to my bank at 50% of note value so I pull 110k out of it.. the payments on the 225k over riding note more than pay my payments to the bank..  and I pulled another 110k and still own the 225k note and I got the 25k down payment.. I did a bunch of these in the day.. that's why I always say the most fun I ever had in real estate was my logging days.. it was wild. we did quite well.

Account Closed · Answer

If you are looking for full cash out and they aren't selling and you don't want to lease then out or refinance, I guess you have the most typical problem with fix & flip. Owner finance won't cash you out, so reducing the price is what you are left with. First I'd place a couple of recorders around the property and do an open. Try to catch what people say about the property that might keep them from buying. Then fix the problem if it can be fixed. You can't change the location or floor plan but you can stage the property if you aren't currently doing that.

It is a tough one, not having seen the property.

Lukas Vanagaitis · Answer

Account Closed if I do owner finance, how to I cash out full amount at once? Or I don't?

Account Closed · Answer

If you are going to offer Owner Financing be sure to get a down payment and then you can either do a Note and Deed of Trust or a Land Contract. Call a real estate attorney for details.

Seth Nadreau · Answer

I don't wanna be that guy... But did you not plan an exit strategy or two prior to taking on the investment?

Best way out is to have a plan and stick with it.

That said, if the market is full of buy and hold investors, I'd put tenants in the properties and sell them as cash flowing income properties. If there aren't many investors, lower the price.

James Wise · Answer

Simple.........Lower the price.

William E. · Answer

my thoughts

• lower the price
• get a better real estate agent that is willing to work harder to find buyers
• offer as a turnkey at some RE meetups
• ask the people look at the house why they chose not to buy it.
• increase the curb appeal (landscaping, painting, garage doors, etc..)
• repeat process

Jay Hinrichs · Answer

Sold these little houses for double what a wholesaler would offer and since they are Oreo won’t finance. As is plus small balance imputed interest is in the 3% range.  And notes are 24 to 30 months.

Jassem A. · Answer

Refinance if necessary and lease and keep it listed for sale until it sells for what you want for it.

How to liquidate non-selling properties?

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