Need some advice

Need some advice

Hi,
My first attempt at real estate was not successful and was wondering what anyone's thoughts are about how I should move forward.

I built a house at the end of 2007 beginning 2008 and attempted to sell it without initial success. For the last year I have had renters in there. The renters have been good renters paying on time but the house does not cash flow with taxes and insurance. The loan is a construction loan and is coming due in April 2010. The renters are interested in buying it but will most likely not qualify for the full amount of the loan and honestly wouldn't pay the full amount owed anyway. The loan is also collateralized by another property so the bank will not forgive the remaining owed. The bank has sent my an extention option which I'm sure they will extend, they don't want the property. My question is should I just continue to rent to them or sell it and take the loss making the remaining monthly payment deficiency to the bank or just continue to rent to home until values come back up.
Thank you for any advice.
Regards,
Julie

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julie

if the bank is giving you an extension i would find a way to keep this and turn it into a profit for you!! first without knowing the numbers of what u owe and what u r getting for rent it is hard to explain any avenue except maybe u should advertise on graigslist or ebay or your local paper and see who is out there they may have a sizable down payment and can make your mortgage payment with a land contract or lease option with you !! for example say your pymnt with piti is $800...... advertise to sell on lease option say ADVERTISE do you want to OWN your very own newly built house ?? well you can if you have 5000 down and can afford 1000 per mnth!! please contact me at 555-1111 and we can get you in this AMAZING property. call me NOW before this brand new home is GONE !!
just an example for you and you would have the down pymnt to apply to your mortgage and a 200 per mnth cash flow !!! plu the overall price may make you $$$$$ TOOO !!! hope it all works for you and :stay on this site and ask more questions as many more people will help you i am sure
jay

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Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


I was thinking the lease option as well

Do I have to get that approved by the bank first if they only give me a one year extension? The renters lease is up and if they don't want to pay the price then do I just kick them out? The house loan is 360,000 and the renters are paying $1,500. The tax value is 279,500 and according to all the home value websites the value is under $200,000. I do think I should just continue to hold it as well. My biggest concern is just having to continue to have it collateralized by the other property and wanting to get it released. But my other hope is that I can do other transactions and make more money and pay this off. I am a little scared but I'm pretty sure I learned a good lesson here.

Thanks for the advice


junbugg40

I agree with a lease option


Also junbugg40

If I where you I would do assignment deals on the side until I had enough to cover the difference incase I was to sell the property.


I like the idea of assignments and making more money.

I have been reading about them but I do have to admit they confuse me a little bit. But I am going to a MN Real Investment Club meeting for the first time on Tuesday, so I am excited to meet some of the DG members and learn lots.


julie

also you may want to shop other insurance agencies to get the same coverage at a lesser premium which will save you some $$$ .i thought a construction was in increments as you build ? and if you have the loan as colateral on another property you do not want to lose this AND THE HOUSE .even if you break even ....others r paying down your debt with renting. also if the lease is coming to an end you MAY be able to raise the rent. also look at RENTING the appliances instead of including them in the mnthly price. how about renting them a washer and dryer?? any way to pull in more cash to get this debt pd down !!! keep asking questions and u will find the anwer you need !!!! hope this helps i feel for ya that is hard lesson !! the longer u keep it and u r getting the mortgage pd down the closer u r getting to the market cycle going back up and can cut your losses or hopefully make a profit.i would keep it and find a way to PROFIT !!! THATS WHAT U R HERE FOR IS TO LEARN HOW TO MAKE A PROFIT AND U will IF YOU R DETERMINED .THE knowledge is on this site !!
jay

__________________

Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...


Julie

If you wanted to do a lease to own if they really want the house. I do this on all of mind, I use a sellers agreement with a renters agreement. I also get a minimum 5000.00 none refundable deposit for the down-payment. I use the interest rate to get all my homes to have a positive cash flow.

Randy

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www.adeptpropertiesllc.com


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