Heading to Bankruptcy :O(

Instead of dropping the prices. You need to make it EASIER for someone to buy.

Try offering a deal with some finance (ie: you vendor finance part of the sale to make it easier for them if they have no deposit. You offer a 2nd Mortgage)

Or you could offer to discount their bank loan to 4 or 5 % for the first year. (just put some of the sale money in a bank account to pay the difference between their bank loan and the rate you offer) This would drop their initial weekly payments by a few hundred bucks a week.

Try wrapping them.

Or you could do a rent to buy deal.

You could even try HIRING a wrapper or savvy investor (many on this site) to set up these deals for you.

Can you describe your situation in more detail?

gotta go,,,,, good luck!

[bulb][biggrin][bulb]

Lifexperience

hi Cazza
I had a lady post some time ago that she was having her lender reposses her house at beverly hills here in sydney
and that she had no way out
I met with her and explain a few options and she went back and refinanced with a lender and haven’t heard from her since she probably will read this post.
I will offer the same to you not sure of the state you are in
this is not a open the flood gates and I will look at every investor in Australia and tell them what I think and see how it can be restructured.
I would look at not dropping the property price but would look at vendor finance back and get some one to buy the properties and reduce debt levels.
three things you need to do
1. put a plan together get the largest lender to help with this as they have the most loss( apart from you) they will organise the interest also.
you need a business plan and they can do this for you
2.get rid of the highest debt or cost first
3. structure so you get rid of the majority of the debt
if you leave 20% vendor finance in the deal and you get rid of the rest to some one you have got rid of 80% of the loss and at say 200k each thats 1mil in loans and if you get rid of 80% thats down to 200k and the vendor finance at say 5% interest
the bank on my calc is behind by 6k per year.
4.So in other words I have hit the wall. Do I just let the banks take the properties off me and go into bankruptcy
never think this the wall is some thing to get over, you just need the help to do it, the banks don’t just take property they want to help you out just as much as you, they want there money back and bankruptcy is the last resort and from me looking from here thats not at this stage at this time.
then main thing is to think of the state you are in as a battle
and its a battle you need to win and to do that you need to rally the troops
and those troops are your lender( they must have some faith at some stage or they wouldn’t have lent you the money) your accounant and I dare say people here
don’t pm me here as I don’t float thru that often send me an email to ultraclean with what state you are in and I will see how I can help but do the above first and I don’t think you will need my help.

here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wish

…if you do nothing then that is what you are left with.

…Only 1 Month of payments left! surely must have seen this comming…

…perhaps thought that someone would *give* an easy way out…(tha bank did)

The banks will quite easily loan u the money.It is not hard to be in front one day then realising u cant keep up with the payments.Possibly the tenants moved out on a few of them for example and they were already maxed out on payments.

Its important to remember to take responsability when loaning money and have a strategy ready to put into action(early) for when something goes wrong,otherwise u can lose the lot.
That is dissapointing as they must have done something right and worked hard to be able to control 5 propertys in the first place.

We’ve got 70 yrs on planet earth,Lets make the most of every day!

hi all
couple of things.
first gmh454.
once it winds up in the chase section the guy who is chasing wants it off his desk and closed before it gets any worse and he can be blamed for a bad situation getting worse under his stewardship.
this maybe the case that you have dealt with but is not with the ones that I have dealt with most lender inc the big four want to get out of these problems and if that includes helping to do it they will.
for a bnk its not cheap to chase a loan defaulter and someone has to sign his name to a doc so they will go out if there way to help if you give them a proper formulated business plan of how you are going to get out of your debt.
I am talking with a couple at this moment an=bout a couple of commercials that are abit larger then this amount and they do wish to cap interest etc to get out of the problem.
there is a couple of thing that need to be understood a problem like this first goes to adminisration and then liquidation and if this is in liquidation then yes it is very hard to get it back from there.
you need tyo talk to the lender before liquidation and then you can get a deal together.
the other issue is how do lenders get into this state for me is simple.
greed
the margins have been squeezed with lenders as there loan books are squashed by the rams and aussie’s of this world so they lend on products that they shouldn’t and to people the shouldn’t.
and just like the casino if you play the higher risk games your profit goes up but so does your exposure to risk and thats what this is.
this is not an attack at this poster but is a general attack just because a person has 5 or ten posi properties all over the country doesn’t automatically mean they know what they are doing it means they have found posi properties.
when every you are investing you must know
your risk
your profit or potential profit
your cash flow
and most important if this goes pear shaped your exit structure.
I have spoken to people that have 30 and 40 houses and they tell me they don’t know what they are doing except just keep buying posi property
thats great but if a problem occurs that may well unravell to a heap of problems.
and all that good work comes tumbling down.
its not hard to buy property you could buy some in your dogs name, what is hard is keeping it
holding and profitting from it.

here to help
If you want to get involved in some of the projects I’m involved in email to [email protected]
currently looking for up front money at 15% p/a pm me if you wish

Hi Cazza

Karen and I recently completed a negative2positive Joint Venture wrap on the central coast. The property had been on the market for months without any offers. Now it’s been sold for well above what our JV partners were asking and it’s making positive cash flow for them each month.

We are also in the process of doing the same thing for another client who was in default, in Brisbane

Drop me a line and we’ll see if we can help.

All the best, Paul

Paul & Karen Dobson
negative2positive
Turn your negatively geared property into positive cashflow.
Phone: (02) 4984 9540

Talk to us about Wrap Training Joint Ventures.