Portfolio Sale Update

[Arron Paulino]

I am now down to my last two investment properties that I am looking to sell soon. One is free and clear and vacant with offers that have been coming and going. I have been on contract with some buyers who were interested and willing to buy it as is but either changed their mind at closing, which is inconvenient, or not willing to meet a price. I have already had it on the market for about two months now and taking lower offers than list price and what the appraisal value is just to sell it and move on. I've learned to not be emotional attached to the sale but am bringing a knowledge head to the table and not taking lowball offers. Any advice on dealing with lowball offers? I've had offers closer to list price but they end up taking too much time to close.

The other property has a mortgage around list price which is hard for me to take anything lower without bringing money to the table in order to close. It is a learning lesson and something I'll consider when doing my numbers in the future. It has been harder to get offers for this one as it might be higher than what the market is looking for, but just want to not lower too much due to the mortgage owed when closed. Any advice on this one? Not really sure if rehabbing it is even a consideration to raise its value due to me selling as is.

I am thinking the properties will cancel themselves at the end, which is fine so I can start anew with the knowledge I know now. Looking to sell these two, learn my lesson, and get into better investment opportunities going forward.

[Arron Paulino]

Quote from @Bill B.:

You have to price property 2 on what it’s worth. It doesn’t matter own but what you paid for it or what you owe on it. 

I assume you aren’t willing to sell property 1 for only $1,000 because you don’t owe anything on it. So you agree what you owe doesn’t matter. 

I also assume you are losing money every month on property 2 with mortgage interest, insurance, taxes, utilities, etc etc. You either rent it out or sell it for what it’s worth. You’re just paying out of pocket now so that you don’t have to pay out of pocket later. 

Good luck. 

Makes sense. I may just have to take it as a loss and prepare funds to have it close at what the it is worth on the market.

I may just end up selling the free and clear property for what market says and get the most out of it right away.

This is correct. I was trying to think if it is worth it to rehab and then rent it out but without having much liquid funds available this play is difficult. I am trying to limit the funds owed at closing in order to sell this one off since it has a mortgage. Just trying to select the best option at the moment. I appreciate the feedback.