I have a commercial bldg. on a busy street that I tried to sell outright @ $180,000.00. No cash buyers responded so I owner financed it for 2 yrs. The buyer opted out after 2 years so I am now considering best strategy. No mortgage owed. Would like to sell but tried before. Borrowing against it is hard due to credit challenges. Can’t sell the note since buyer defaulted on the loan. I’d use it myself but startup capital is not available. I don’t want the bldg. to just sit there unused. Any ideas on what I can do with this building?
Obviously the simplest option would be to keep lowering the price till it sells.
The next option that comes to mind is to sell it owner financed contingient upon the buyer being approved by a note buyer, and then sell him the note in a back-to-back closing. Example... buyer buys it for 180 at 9% interest with 10%down. You have a note for about 162k that you sell the same day for 120. You walk away with 138. You might be better off just lowering the price till it sells for cash, but I have seen this option work as well.
A thought that I had was that you might be able to find an auction service to sell the property. I know you can set a reserve price with some of them, but other than that, I have no experience with this option.
Lewis, assuming that personal debt might be an issue, you can either buy an aged LLC with business credit or season one on your own, and transfer all personal debt. to the entity to get if off your personal credit report to boost your DTI. At the same time, credit repair your personals to the max, and then refi in the future after all the debt shows up $0 on your three credit reports. Then you can rehab, raise rents and actually increase the sales price!
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