All Forum Posts by: Alyssa Balam
Alyssa Balam has started 2 posts and replied 4 times.
Post: Forclosure or try to sell at a loss??
- Houston, TX
- Posts 4
- Votes 2
Quote from @Jay Hurst:
Quote from @Alyssa Balam:
Quote from @Jay Hurst:
Quote from @Alyssa Balam:
My husband and I acquired a rental property in 2023 with hard money with the intention of rehabbing the home and renting out the 3 units, refinancing and paying back this short term loan.
Unfortunately the ARV we relied on was significantly off and we have been stuck paying a high interest payment on this loan for months. We've tried to sell the property outright with no luck and would only be able to refinance if we put about $80k down.
Basically, we’re at the end of our rope with the place. Thoughts on (1) biting the bullet and starting the foreclosure process versus (2) waiting it out and trying to sell the property (at a loss)? No one putting in offers at our break even selling price.
Note: All units are leased out currently and the total rent is currently equal to the interest payment we’re making so we’re at a break even but obviously can’t do this forever.
Also, the lender won’t take back the property in leu of payment-we asked.
@Alyssa Balam When is your hard money due in full? Do they have an extension policy? It is not really in their interest to foreclose either.
Do you own any other investment real estate?
We do own one other investment property that is doing well.
Post: Forclosure or try to sell at a loss??
- Houston, TX
- Posts 4
- Votes 2
Quote from @Jay Hurst:
Quote from @Alyssa Balam:
My husband and I acquired a rental property in 2023 with hard money with the intention of rehabbing the home and renting out the 3 units, refinancing and paying back this short term loan.
Unfortunately the ARV we relied on was significantly off and we have been stuck paying a high interest payment on this loan for months. We've tried to sell the property outright with no luck and would only be able to refinance if we put about $80k down.
Basically, we’re at the end of our rope with the place. Thoughts on (1) biting the bullet and starting the foreclosure process versus (2) waiting it out and trying to sell the property (at a loss)? No one putting in offers at our break even selling price.
Note: All units are leased out currently and the total rent is currently equal to the interest payment we’re making so we’re at a break even but obviously can’t do this forever.
Also, the lender won’t take back the property in leu of payment-we asked.
@Alyssa Balam When is your hard money due in full? Do they have an extension policy? It is not really in their interest to foreclose either.
Post: Forclosure or try to sell at a loss??
- Houston, TX
- Posts 4
- Votes 2
My husband and I acquired a rental property in 2023 with hard money with the intention of rehabbing the home and renting out the 3 units, refinancing and paying back this short term loan.
Unfortunately the ARV we relied on was significantly off and we have been stuck paying a high interest payment on this loan for months. We've tried to sell the property outright with no luck and would only be able to refinance if we put about $80k down.
Basically, we’re at the end of our rope with the place. Thoughts on (1) biting the bullet and starting the foreclosure process versus (2) waiting it out and trying to sell the property (at a loss)? No one putting in offers at our break even selling price.
Note: All units are leased out currently and the total rent is currently equal to the interest payment we’re making so we’re at a break even but obviously can’t do this forever.
Also, the lender won’t take back the property in leu of payment-we asked.
Post: Help! Appraisal came in MUCH lower than ARV estimate...
- Houston, TX
- Posts 4
- Votes 2
We're ran into our first BIG hiccup in real estate....
We purchased a large SFH in the area for $185K and took a loan out for $235K (to use as construction loan for the reno) with seemingly lots of update potential to turn into a triplex. The renovation is complete and it's 3 units now, but due to it being so close to the holidays, we haven't found any tenants yet.
Used hard money to purchase the property and now it's *time's up* and we need to refinance! Unfortunately, the appraisal just came back for $235K when we had estimated along with our real estate agent an ARV closer to $340K based on comps. This is a crushing difference.
Does anyone with more experience have any advice on how to best mitigate a HUGE loss here? We're already asking for another appraisal, but do not have high hopes. The refinance is now set to require $80K cash to close.
Thanks in advance BP community!!