What to do when you can't sell a property? Very desperate...

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What to do when you can't sell a property? Very desperate...

Eric P.
Rental Property Investor · MI · Member since 2008 · 34 posts · 4 votes

I've got 2 vacant lots for sale in Ocala, FL (see here http://forums.biggerpockets.com/viewtopic.php?t=2892) that I cannot sell. I have had them since december of 2005 and have listed them on every free classified site I could find on the internet, have put an ad in the newspaper, have it listed with a realtor (not an exclusive right of sale, if I sell it he gets nothing), signs on the property, I even tried to go to my local real estate investors club, which apparently doesnt exist... I showed up at the time/date/address listed on the website and nobody at the building knew anything about it.

I have a loan out on the lots, and approx. 25% of my income goes to the loan every month, and I basically cannot proceed with anything in my life right now because of this. I can't save any money to do anything, and I don't know what else i can do to get rid of these lots.

I will sell them for what i have into the lots, I don't care if I make a dime, I just need to get rid of the monthly payment. I am broke, so I can't afford to sell them for a loss, I don't have any money to bring to the closing table.

Can anyone give me some good advice or suggestions?

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  • Jeff Takle
    Real Estate Consultant · Somerville, MA · Member since 2008 · 339 posts · 52 votes
    20y

    You can try giving a realtor an exclusive right to sell so that they're incentivized better. It seems from your statements that you've not been successful in finding a buyer yourself, so offer the agent a sweet deal to exercise their contacts. Maybe pay an above-average commission or a straight dollar amount if that's allowable in your area, in order to get them excited about closing the deal. Also, seek an agent who deals with land sales and get an "old dog" who's done land sales for a long time. May be your best best is to have that agent flex their network on your behalf.

    Yes I know this costs you money. But you said you're broke and can't afford to go on. Well, don't declare bankruptcy and it doesn't sound like you're being successful in selling it yourself. If you do decide to go with an agent Exclusive, then I'd pull all your other ads. Bad idea to pay agent a commission and then seperately advertise that you're willing to sell at your buying price--effectively capping the top end of what you might get in the sale, assuming that was in fact your buying price.

    Lastly, just FYI, I've had a number of FSBO owners try and tell me they bought their property at XXX dollars and now they're dumping it for little or no gain. Your purchase price and the amount of your mortgage are both public information easily attained at the county/city appraisor's office and registry of deeds. Those buyers were fibbing to try and make their sale sound better; I'm not saying you're doing that because I really don't know, I'm just letting you know that it's very easy to verify so it pays to be honest.

    Best of luck. That's a tough position to be in. -JT

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  • N/A N/A
    Member since 2008 · 1 post · 0 votes
    20y

    How much! Thanks.

    0Reply
  • Eric P.
    OP
    Rental Property Investor · MI · Member since 2008 · 34 posts · 4 votes
    20y

    i would not even consider bankruptcy, i have a 740 mid score.

    i am well aware it public info what my purchase price is, i can itemize everything i have into the lot (i had to borrow money for closing costs and down payment too)

    i am screwed, i think i need a drink

    0Reply
  • Abraham Cohen
    AL · Member since 2008 · 84 posts · 2 votes
    20y

    Give a realtor an exclusive, you may be suprised.

    0Reply
  • John LaBelle
    Residential Real Estate Broker · Chelmsford, MA · Member since 2008 · 48 posts · 0 votes
    20y

    I'd open up the phone book and call some local builders/contractors.

    0Reply
  • N/A N/A
    Member since 2008 · 7 posts · 0 votes
    20y

    Hi, maybe its time to get more creative before you can't even afford that drink.

    Have you heard of the Lease to Purchse option of investing?
    Well its ment more for actual houses, but may work for a stand also.

    What you do is get an investor to cover all costs of bonds for you, he has an option to buy it any time he wants over the next say 8 years...then you can move on with life...now he can go and do the same, get others to pay the bonds and little more, so he makes money, but he will do it for say 4 year contracts, etc. This way he can make more money and still solve your problem, becasue you can go on with life, seeing as you'll have that 25% back in pocket and still have the tax benefit of the bonds, which remains in your name.

    OK, hope this helps...for more info you can find me at my website.

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  • Abraham Cohen
    AL · Member since 2008 · 84 posts · 2 votes
    20y

    Lease purchase or owner financed is a good way to go! I'll be your first prospect. PM me!

    0Reply
  • Eric P.
    OP
    Rental Property Investor · MI · Member since 2008 · 34 posts · 4 votes
    20y

    cprntr, i sent you a PM

    morne, thanks for the info, whats your website?? i didnt see it in your signature or profile

    0Reply
  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    20y

    Thought I'd try to get you some additional help here - there is a post on our blog about it now:

    What to Do When You Can't Sell a Property?

    Hope it helps bring you a bit more attention.

    Podcast Guest on Show #100
    0Reply
  • Eric P.
    OP
    Rental Property Investor · MI · Member since 2008 · 34 posts · 4 votes
    20y

    hey thanks, i really appriciate you going out of your way to help me out!

    0Reply
  • N/A N/A
    Member since 2008 · 36 posts · 0 votes
    20y

    You might also try sending packages/brochures about the property to agents in your area, use "Brokers Protected" or similar language. This will give them the incentive to bring a buyer, and may cut your commission costs in half. If you need an example, PM me, I'll be happy to send you one of our land fliers to use as an example.

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