OfflineHi Every one.
I am a newbie in REI. And I just made a mistake on my first deal. Actually, this is still a good deal. I put 8 rented properties under contract which generate $54,000 per year for 150K. The cash on cash ROI is 30%. But I can't sell it. I don't know why. Everything is good even though the neighborhood is not good much. But the houses have tenant in there and they are never late in payment. They have been there for over 2 years and want to live there for long time. What did I do wrong in here?
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have an option? here, we put a contract under option and that gives us time to inspect the property, etc and to back out legally if need be.
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Actually, we have the inspection period but I did nothing. I thought this is a good deal so I will sell it really quick. But it too big and no one can afford those properties. Now I am about losing my EMD.
if you have an inspection period clause in your contract... all you say is that the inspection did not satisfy your parnter... seller may ask for inspection report, or contractor's estimate....
Valerie
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dolthanhdol
I don't know if you still have the property or not, but if you do marketing is a huge part of selling properties.
If you are selling a rental property to another investor you need to make sure you are marketing the correct information to the correct people.
Landlord investors are interested in the cashflow with little money into the deal. So you need to figure out how to get them the best cash flow with as little into the deal as possible. In the past when i have sold properties, I find financing for the end buyer. for example: I was selling some condo units I owned, and learned i couldn't get them FHA approved. Most buyers at the time were using FHA financing. So I found a lender that was still approving 100% LTV loans. I solved the problem for my buyers that didn't have a lot of money to put down for a conventional loan.
So on your deal. Find some financing whether it is seller financing or a bank that is willing to lend a high LTV for your buyers. They then can step into the deal with little out of their pocket. This will make it more appealing for any Landlord buyer
Keep moving forward!!
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