Selling a Poor Performing Property

[Danielle Wolter]

I've been investing out of state for several years now. Most of my properties are great. However, I have one that I bought in a bad area (crime, etc). I've tried to get rid of it, but have not been able to sell it for my life. I've been shouldering the payments for over 2 years now and can no longer afford it.  I've been in touch with several wholesalers and it always end with them deciding not to move forward with it. 

Any suggestions for getting rid of this property? If I can't sell soon, I'm just going to have to let it foreclose with will really hinder any further investing I do in the future. (FYI I own 11 other properties in the same part of the country). Thanks!

[JD Martin]

Quote from @Danielle Wolter:

I'm actually more than happy to sell at a discount. I'm basically willing to sell it for what I owe on it. Like I said, it's not in a great area, but that said I always thought there would be someone willing to buy in these areas. So far, it's been negotiation, but like I said, I'm perfectly happy to take a loss. 

 You're not happy enough to take an actual loss beyond your sunk costs, since you're only willing to sell it for what you owe on it. Apparently it's not worth what you owe on it or it would be sold already. So take less than you owe and bring a check to closing. Sometimes that's what happens on a loser property. Forget about the psychology of past actions, because you've already spent that money carrying it and are not getting that back. If it's really that bad of a setup - no one to rent to, no one interested at basic appraised value - then you need to sweeten the pot, which usually means pricing in a discount large enough to create movement. 

Think of house sales on a continuum, from let's say $1 to $1 billion dollars. If you offered this house for sale for a dollar, you'd have a line 10 feet deep down the street to buy it. If you offered it for a billion dollars, you'd sit on it for 40 more years. All you need to do is find the sweet spot where there's enough interest to pay for it.