Need help pronto

[Golflover 0]

Hey all, got a question for a friend in need...

 

If she didnt have bad luck, she would have no luck at all. She owns her house and also has a rental property, a victorian home that is split up into 4 apt dwellings. She has an agent trying to sell the property for her since things have went down hill in the last couple of weeks.

 

My question is, is there anyway she can do a L/P or sell to another investor to make money on instead of seeing 7% going to a realtor?

 

Shes the type that would help out anyone and be there for them and now in her time of need she has no one to turn to. She would like to keep it but i dont think that shes making enough in rent to cover the payment.

 

My thinking cap has overheated and i know with the amount of extremely smart people on this board any help is appreciated. I also dont wanna get into the deal and make any profit off of this, i would rather give her a xmas present early.

[Kimberly 0]

My question is, is there anyway she can do a L/P or sell to another investor to make money on instead of seeing 7% going to a realtor?

If she didn't include in the contract with the realtor that she has the right to find her own buyer and NOT pay a commission, she's going to have to break the contract with the realtor in order to avoid paying the 7%.

[mpine 0]

If she is in a contract, have her tell the relealtor she has decided not to sell any longer, and will be renting it out herself.

 

Mike

[-Tony- 0]

If all else fails just reject all offers

[MichaelC 160]

She needs to carefully read her listing agreement. There will be a cancellation clause, and in it should be all the details as to what she can do and what the consequences are, if any, when she cancels.

[Golflover 0]

I think the realtor is somehow related to her and not sure if she has it under contract until a buyer is found. At least thats the way shes making it sound.

 

Is there anything outside of the box that she can do to either keep it or sell it and make a nice enough profit to where she doesnt have to worry about her other bills?

[MichaelC 160]

I think it all depends on the numbers. Do you have any specifics?

[Golflover 0]

unfortunely not, shes been in a depression and im trying to help her out, but dont really know how to go about it. im sure she would listen to me, but i wanna make sure it doesnt come back and bite me in the a$$

[MichaelC 160]

OK. Then let's try and simplify things.

First, to save on the Realtor's fees, she needs to cancel her listing. If she doesn't have a formal listing, then the hurdle is crossed.

Next, somehow, you'll need to know the numbers involved. Without this data, Golflover, it's impossible to help her. What is the balance owed on the loan or loans? What is her total monthly obligation on the property?

Then, what is the market value of the property if she were to sell it, and how much rent can she reasonably expect to receive?

Take care of these few things, and you can begin to make some headway.

[Golflover 0]

i was afraid you would say that MC

 

i will talk with her soon and see what i can do to help. i was thinking maybe have her refinance or something like that till she gets her ducks in a row again.

[MichaelC 160]

A refi is one possible solution. But, still, the numbers are needed. Appraisal, amount currently owed, etc...

[news754 0]

What area is this property in?

[Golflover 0]

ok, i got more info....

 

its not her rental shes selling, its her residence shes selling. im able to help her out more this way. her mortgage is $700 and her cousin/realtor told her the house 4 doors down sold for $98,000 a few months back. I'm going to help her...im thinking selling it on a L/P for $110k, $1000/mth with 50% rent credits and approx $5k option.

 

So, that will get her at least $5k up front, $6k in rent credits and an extra $300/month spending money with the total selling price of $99k.....which is $1000 more then the realtor said she could get.

 

Sounds like it could work...shes going to check and see if she can get out of the contract or if she can sell it without the realtor

[Kimberly 0]

Golflover,

 

Make sure the mortgage payment is PITI.*

 

Kim

 

 

 

 

*In case someone doesn't know, PITI stands for Principal, Interest, Taxes, Insurance.

[MichaelC 160]

The info you provided is a good start. Still, I wouldn't base the FMV of her property based on the fact that "her cousin/realtor told her the house 4 doors down sold for $98,000 a few months back." That's just playing too fast and loose with values, for my comfort. My suggestion is a more thorough review of recent sales, either through the Realtor's CMA, or one of the online services, such as Data Quick. For $9.95 you will have as detailed a report in your hands as any Realtor has through MLS, including the cost per square foot. Takes all of about 90 seconds to receive the report. This will eliminate any doubt as to the property value. Pricing the property below market value will cost your friend money. Overpricing the property means you'll be sitting for a while with a house that no one wants at that price.

Same thing with the rent price you'll be setting. Be sure you're at the top of the market, but not out of the range that the market will accept. You don't want to find yourself twiddling your thumbs with the Maytag repair guy because you're $300 above market. This due diligence upfront will save both time and money for you and your friend.