Here’s a real big lesson to learn from that came to me as a seller lead through my website. This is real ugly and shows what can go wrong when you speculate.
I own a rental property with tenants, that have a lease with option to buy. I rented this house at the peak of our appreciation in Phoenix, now that prices have corrected I owe much more than the property is able to be sold for. Either my tenants will complete the option to buy, or they will leave and I will have to sell on the market, either way it looks like a short sale. What I perceive my problem to be in the near future is, I am not in any financial hardship, and do not reside in the property needing the short sale. I have heard both of these are requirements for a short sale. I cannot afford to keep up the payments if I have no tenants, waiting for appreciation to return, and I have a negative am loan that is digging me into a deeper hole. I cannot afford to refinance this loan, even with the rent income I wouldn't be able to afford the new payment. Please help me out of this situation.
Thank-you, Jeff
The problem is Jeff bought a rental but did not buy it based on the income. Then, when the market took a turn his problem was compounded with a lease option that gives him negative cash flow, a contractual obligation with a lease option to the buyer, and his option price could be lower than what he owes on the property.
Had Jeff followed a property buying system like that in Kick Ass Wholesaling he would not be in his current position! And while he has a few options on how to get out of this alive he would have been in a better position to invest on sound principles from the beginning.
It’s funny how some people complain about the cost of education or a real estate buying system like Real Estate Profit Pro where they can learn the right way to invest. If you were to ask Jeff I’m sure he’d tell you this is one expensive lesson from the school of hard knocks that he would have rather avoided.
I own a rental property with tenants, that have a lease with option to buy. I rented this house at the peak of our appreciation in Phoenix, now that prices have corrected I owe much more than the property is able to be sold for. Either my tenants will complete the option to buy, or they will leave and I will have to sell on the market, either way it looks like a short sale. What I perceive my problem to be in the near future is, I am not in any financial hardship, and do not reside in the property needing the short sale. I have heard both of these are requirements for a short sale. I cannot afford to keep up the payments if I have no tenants, waiting for appreciation to return, and I have a negative am loan that is digging me into a deeper hole. I cannot afford to refinance this loan, even with the rent income I wouldn't be able to afford the new payment. Please help me out of this situation.
Thank-you, Jeff
The problem is Jeff bought a rental but did not buy it based on the income. Then, when the market took a turn his problem was compounded with a lease option that gives him negative cash flow, a contractual obligation with a lease option to the buyer, and his option price could be lower than what he owes on the property.
Had Jeff followed a property buying system like that in Kick Ass Wholesaling he would not be in his current position! And while he has a few options on how to get out of this alive he would have been in a better position to invest on sound principles from the beginning.
It’s funny how some people complain about the cost of education or a real estate buying system like Real Estate Profit Pro where they can learn the right way to invest. If you were to ask Jeff I’m sure he’d tell you this is one expensive lesson from the school of hard knocks that he would have rather avoided.
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