I have clients throughout the country that have exit strategy for those that have homes that have become a nightmare and are continually costing money, tenant issues either not paying or trashing the units, long vacancy times, and any other like kind issues.
The scenerio I see constantly is the investor paid 20 to 50k for a cash flow property… property or management performs for a short period of time then things go south. Tenant does not pay, Manager is less than what they hoped for, and to keep the house rented is causing a continual cash drain on the investors. And or house gets broken into Copper is stripped condenser unit is stolen.. those types of things.
We have used this scheme to dispose of maybe 20 of our REO's that we took back in the last few years. And there are investors in the US that strickly use this scheme as a business. Its not without its faults but it does stop the bleeding and actually create some positive cash flow.
So I would be curious if anyone would like to know about other methods of creating cash flow with a property you already bought and kind of wished you had not…
Amazing no responses ,….Like I said Jay give people time with the head aches of rentals and they will realize more then one way to win in this business..diversification….
Alex
Gotten private e mails a plenty, and have been referring them to folks in the select markets that I know and have vetted and will help them through these.
Especially Detroit I have great contacts there
although some properties are beyond salvage. But most can be turned around with no further cost and generate a little bit of cash flow.
And take the stress level off of the investor.
Sure, Jay.
We'd like to hear your thoughts!
The only thing I can think of, if stuck with a property that is not delivering, and does not seem to have any solutions, is to sell.
If anyone wants to buy it!quickchick wrote:Sure, Jay.
We'd like to hear your thoughts!
The only thing I can think of, if stuck with a property that is not delivering, and does not seem to have any solutions, is to sell.
If anyone wants to buy it!Yes and no some banks selling properties super low because they are stuck. Some investors make big mistakes buying to many( if they paid cash they are willing to dumb good buys can be made ) . About 3 years ago when hard money companies started dropping here in the USA. I went to them and tried to buy all the inventory they had in my markets. Knowing they needed to sell ,and most were cash lenders not real estate guys.Two different worlds lending capital or being on the ground and understanding the real estate product .
So always worth seeing the properties and why they are being liquidated.My team has been in negotiating with Lawyers ,banks for 2 years on a 67 house package of homes in my area. My accepted offer 2 years ago was $1.1million. Now today we have conference call my new offer is $600k. Since the value has dropped and the area has gotten worse. So I know there is a dollar there to be made. Rehab should be with all $350k ( high but safe number)
Just always find out why and then see the properties for your self.
Never want to step over a a dollar to pick up a nickel…
Alex
quickchick
What I am talking about is an alternative to selling for cash and loosing 50 70 95% of your investment which is what will happen when you unfortunate enough to have bought in a really rough market, unless you can find another unsuspecting out of state or area investor the locals will know its true as is value
There is a whole scheme that companies that I have financed have put together for these assets that help the owner at least start to recoup and they have better than a 50% chance of having some nice cash flow for 4 to 5 years.
Its impossible to do on your own or through a property manager you need to have a true equity partner on the ground. But it has worked on probably 30% or more of my REO inventory accross the country, And the alternative was huge loss's for us.
I am happy to just make the referrals with the proviso that they keep me informed as to their progress and success.
Alex SC wrote:quickchick wrote:Sure, Jay.
We'd like to hear your thoughts!
The only thing I can think of, if stuck with a property that is not delivering, and does not seem to have any solutions, is to sell.
If anyone wants to buy it!Yes and no some banks selling properties super low because they are stuck. Some investors make big mistakes buying to many( if they paid cash they are willing to dumb good buys can be made ) . About 3 years ago when hard money companies started dropping here in the USA. I went to them and tried to buy all the inventory they had in my markets. Knowing they needed to sell ,and most were cash lenders not real estate guys.Two different worlds lending capital or being on the ground and understanding the real estate product .
So always worth seeing the properties and why they are being liquidated.My team has been in negotiating with Lawyers ,banks for 2 years on a 67 house package of homes in my area. My accepted offer 2 years ago was $1.1million. Now today we have conference call my new offer is $600k. Since the value has dropped and the area has gotten worse. So I know there is a dollar there to be made. Rehab should be with all $350k ( high but safe number)
Just always find out why and then see the properties for your self.
Never want to step over a a dollar to pick up a nickel…
Alex
Lets run by these next month this could be a good pick up for TWH C D class rental pool.
We know there are many people out there who have been burnt (or about to be) badly.
It takes a brave person to stand up and tell it like it is (or was) for them, but I have been asked by a third party who wants to ‘out’ the rip off guys if they might be prepared to give their versions of what happened.
There is chance (albeit slim) that if enough Australians come forward something may happen to get the cowboys out there.
I do not (personally) need to know any details, but I would be very happy to pass on anyones details to someone who may in the long run be able to help.
In the last 6 months I have heard some really nasty stories and unless someone says something it will not stop.
Email me directly (or PM me) on [email protected] if you or anyone you know has been ‘got’. There is nothing to be ashamed of, but if you say nothing, nothing will help you. There really is ‘nothing’ to lose.
I read on another post what Jay and Cheeves were discussing about subprime. Nothing anyone in Australia has lost comes close to what happened to almost every american home owner in the last 5 years, we have ALL been lucky in quiet little Oz, so no matter what you might have lost, its nothing like most working americans lost through absolutely no fault of their own.
BTW there is a fantastic docco online through CNBC. Anyone looking at the US housing market should watch it:
Its nothing Jay and Cheeves don’t know and lived through, but its really good.
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