Are there any other options for getting out of a bad real estate investment?
Posted on Dec 29, 2008 under investment |I purchased a land/home deal back in 1999. Everything was fine, I had intended to live there forever, until I married a man in the navy. Now, after renting out my home for 1 year, the person renting it (distant family member) has caused alot of destruction, which I cannot afford to repair. It is currently on the market, as a fixer upper, and after finally seeing images of the damage (I am on the opposit coast) I do not believe it will sell for the asking price, which only covers what I owe. Other than selling, are there any other options to get out from under what has become a financial drain? options that do not include bankruptcy or repo. we are going to take her to small claims to cover the cost of what we were able to repair.
December 29th, 2008 at 6:14 am
No answer - just wanted to say you sound very intelligent and resourceful and I wish you luck in getting your tenant to pay for the damages. Even if she can't psy, a judgement against her will ruin her credit rating. Small comfort eh?
December 29th, 2008 at 6:14 am
did u think bout taking you cousin to court to pay for all the repair?
you could alwayz try to sell atthe asking price and alwayz a chance to get close to that price,
December 29th, 2008 at 6:14 am
What a horrible predicament. I would consider repairing as much as possible, landscaping, and painting if I were you. A little bit of hard work on a house can result in a huge increase in the house's buyability (value). There are some companies who claim "we buy ugly houses" perhaps one of these companies can help if you just want to be rid of the headache.
December 29th, 2008 at 6:14 am
You could always fix it up, and rent it out. Use it as a tax deduction as well as an investment.
December 29th, 2008 at 6:14 am
You have a few options:
1. Do a lease purchase option. This tennant will pay a higher rent because part of his rent goes towards the purchase of the home. Since he has an option to buy, he/she will fix up the place for free. You can also negotiate (if need be) the cost of the fixup with the option fee.
2. Make a deal with a rehab specialist. They will fix the damage and make improvements to the place to make it sell at a higher price. Once the rehab is complete and the house is sold, you split the profits with him at escrow 50/50. This option, you need to be careful on how you negotiate this. It can bite you if you don't look out.
3. Find someone who will assume the mortgage. If the loan is not assumable, then transfer the home to a trust and sell the trust. You could also sell the property "subject to" an existing mortgage to someone who you can trust. Again, you have to be careful how you do this to protect yourself.
If the property is in Southern California, let me know and I will help you out. Otherwise, contact me if you have any questions.
Regards…
December 29th, 2008 at 6:14 am
Sorry about your dilemna, it's a shame that people are so careless and irresponsible.
What you can do is call your insurance company. Tell them that you had a tenant, that he vandalized your property, and have them send out an adjuster to estimate the damages. They might be covered under your policy. They will cut you a check for the repairs and then the insurance company will go after the family member.
Then, contact a local Realtor in the area of the home. Let them know your situation and they should be able to help you. Good Luck.
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