Stuck in a flip

[Robert Norvell]

Quick rundown of the scenario: I bought a house outright 1 year ago to fix/flip. At that time I had excellent credit. I paid cash for the house and used credit to pay for the fixing. 1 year later the house is done, but it isnt getting much buzz on the market. Ive had it listed since March 1. 

As far as the value is concerned I can see the comps and it would more than cover my expenses. I have considered financing it and just renting it out, but now my cards are maxed so even though I havent missed any payments, my credit is trashed. If I just rent it and dont refi, then Ill be spending the next year clearing off those cards and the R.E. portfolio will essentially be put on hold. Any creative thoughts for how to unstuck myself at a bit faster pace?

[Account Closed]

lesson learned from this one is dont use all of your money for the flip. Leverage is a good thing it helps you react faster it also increases the cost basis for the flip and reduces your taxable cap gain. A full year to fix is too much this is one reason your house may not be getting attention .I can build a house ground up in 90 days after permitting so a flip shouldnt take longer than that. Ok so lets deal with the problem at hand you are getting no traction from your MLS Listing . Drop the listing since your days on market is just going to increase from here and that will limit the buyers. Introduce yourself to every realtor in your area and give them a flyer , host a wine and cheese for them to view the prioerty and point blank ask them what they would do to sell the property. Offer a $5000 bonus in addition to full commission to the agent who can sell it as a pocket listing in the next 30 days. List the house on craigslist , backpage and the other 36 sites that show home listings. List it as both for sale and lease Purchase. If you sell it on a lease purchase you can sell the purchase note at a discount to a note buyer ( contact me first ). You need to take massive action to obtain a result.

When it comes to your credit being trashed well it is just your utilization ratio is tooo high , next time call and ask for increases in your limits as you use the cards and then apply for new cards as you increase your credit , however the best option is a hard money lender and a quick flip!!