All Forum Posts by: Paul Williams

I guess I should have read your post better! Here are some options. I guess what you do depends on what you want to do and what you have the time and money to do.

1. Fix the property and rent it out. You can manage the rental yourself or get a property manager.

2. Fix the house and sell it to a retail buyer.

3. Sell the house to an investor who will wholesale it, flip it or rent it out.

4. Partner with an investor in a way that you will both split the profits. Make sure to set a baseline for the value of the property before you begin and spell out everything.

5. Sell it to your brother or buy out his portion of the ownership.

6. Clean the place out and list with a realtor.

I'm leaving out other dumb options, like give it away, burn it down, do nothing and let it go to taxes, etc.

-Paul 

Hi Kim, are you looking to improve and sell or lease it out or just get rid of it?

My first wholesale deal wasn't intended to be a wholesale deal.  I bought a commerical property for $175k and tried to lease it out.  After 6 months with no interest, I got a call asking if I would sell, and I said absolutely.  We closed a couple months later and sold for $200k, and wow!  What a relief. It felt great.  Of course, you have to keep doing deals to keep the money coming in, but if you can add in some passive income over time, you'll replace your active income. Good luck!

Robert, I own a commercial building that I want to get rid of big time.  I don't know how your seller will respond to the request for owner financing, but in my case, I would be certainly entertain owner financing this property to a buyer.  As an advantage to me, I can probably get a higher sale price when offering owner financing, and if I can get a down payment, even better.  After a year or two, I could even sell the note if payments are made as scheduled and cash out, or if the seller is doing well,  I can keep the income from the payments.  It looks like Wendy Patton has some good info, and a lease option might be the best option for everyone involved.

I own an office/retail/etc. commercial building that I would love to get rid of.  Some of the potential buyers don't have the money for a down payment or they don't want to spend the money for a down payment because they wouldn't have money to remodel the building to their tastes/needs.  Can I offer to finance the down payment for them so they're only in the building for closing costs?  My thinking is to offer the same terms as the bank is offering the buyer and do a second lien on the property.  Then I could get rid of it, potentially at a higher price (since they don't need a down payment), and just worry about a small payment from the buyer for a long time.  Is this legal? Any suggestions/advice/concerns? I appreciate any insight.

Details about the building:

3000sf at the intersection of two busy state highways in a small town (Llano, TX)

$172,500 asking price

building needs work inside- new carpet, paint, some new siding, but nothing major

You might could ask the first lien for a short sale and pick it up really cheap.  This would save the occupant from a foreclosure, and could get you a nice discount on the note.  Then you're the noteholder and could either offer some options to get them current, or you could start the foreclosure process and take the house back without losing your shirt.  Another option might be to call the 1st position and buy the nonperforming note from them.  Either way should be a lot cheaper for them, and if it isn't, it might be a lot easier, faster and cleaner for them.

I live in Marble Falls, and prices everywhere in the Austin area don't seem to be feasible for rental properties. I've had people calling me, excited about a "deal" where I can charge rent equal to 1% of the house value. After expenses, not much is left.

@Daniel McGrenehan, did you go ahead and go forward with the franchise?  I'm almost convinced to go ahead and get a franchise from them. Seems like a solid business. If you did, let us know your results.

I use CAPS and Calumet North Properties. CAPS does a pretty good job managing, and I love the reports they provide because it makes taxes super easy, and it helps me know how we're doing for the year, as well as for the month. They pay promptly and communicate fairly well.  Sometimes the repair charges seem to run high, and I'm looking for a company to make my properties rent ready when they become vacant. 

Brian,

There are plenty of programs out there that will charge you a small fortune 20k-50k, but you can find people who have had success and don't mind sharing with you what they've learned for free!  Keep reading and researching, find a mentor and go do it! Make sure you have a good margin of safety and make sure you're getting advice from those who have actually done what you're trying to do with the success you're looking for. Best wishes to you on your journey!

-Paul