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HELP!!

Last post 06-25-2010, 4:52 PM by mustsellasis.com. 4 replies.
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  •  01-17-2010, 3:36 PM 3479

    HELP!!

    I HAVE BEEN DOING REAL ESTATE INVESTING FOR THE LAST 8 YEARS.  I HAVE 21 PROPERTIES.  ABOUT 12 ARE UPSIDE DOWN ON THE MORTGAGE COMPARED TO WHAT THEY ARE WORTH DUE TO THE HOUSING PRICES THAT HAVE FALLEN.  DOES ANYONE HAVE ANY GOOD IDEAS ON WHAT I SHOULD DO WITH THESE PROPERTIES.  SHOULD I LET THEM GO OR KEEP THEM.  THANKS.

  •  01-18-2010, 5:22 AM 3480 in reply to 3479

    Re: HELP!!

    Are the mortgages current?  Does each property have a positive cashflow?  I need more specifics.  Do you hold these properties in your personal name or a Trust?

    Joe Dube

    Moderator & Mentor

    Rehablist.com & REIWired.com

  •  02-27-2010, 11:04 AM 3501 in reply to 3479

    Re: HELP!!

    I would honestly sit down with an accountant and attorney and go over each and every property in my portfolio. If you have financing personally guaranteed by yourself, and you find it a better business strategy to "walk away", it makes it much easier to do after the first one.

     Why would you walk away? Well, does it make sound business sense? How much money would you be paying out and not seeing a return? If you are making a return right now, how much more could you make by putting your money somewhere else? (by buying a different property as current market rates)

    Each person has to make a personal decision about if walking away from a mortgage is something they can do. For some, it is a clear cut business decision, while others look at like they have made a personal promise to the bank that the must uphold. Only you can know the answer the that question.

     If you decide to walk away, a competent attorney should be able to guide you through the legal process and may be able to dispense of the unwanted properties through deed-in-lieu or short sales, saving most of your credit.

    Good luck to you. You have several decision to make either way. 


    Real Estate Radio USA - Real Estate Investing With An Attitude
  •  03-15-2010, 1:56 AM 3515 in reply to 3479

    Re: HELP!!

    Have you made a decision on walking away from these upside down properties?  I am in a similar situation with a couple of my rentals and just wondering what others are doing?
  •  06-25-2010, 4:52 PM 3547 in reply to 3515

    Re: HELP!!

    If the property is bringing in a positive cash flow, I would keep them, regardless of their equity position.

     

    If not you need to look at maybe short sale-ing them as this will be less impact on your credit than straight up foreclosures.  Unfortunately many investors bought properties that were marginal deals banking on appreciation.

     

    We may be interested in your properties. Submit them to www.MustSellAsIs.com and we will see what we can do.

     

     

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