Builder with new home that isn't selling. Bank financing is expiring. Need to move fast or lease. Suggestion

Home Builder with homes that aren't selling. Bank is putting pressure on my business. I need suggestions on alternate financing, leasing, selling fast!
In Selling Property - Asked by Jeff B. - Jul 14, 2010
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Answer(s)

Gabrielle C.
Owner/Investor
Honolulu, HI

Hi Jeff,
Please tell me specifically where your new homes are, how many you are talking about and the amount of money you are looking for? Which bank are you dealing with? I'd be interested in seeing more info on this and maybe I can come up with a resolution for you. Thank you. Gabrielle

Jul 14, 2010
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Brandi L.
Broker/Agent
Oak Brook, IL

Jeff,
From your statement I would say that you are an ideal candidate for an auction. Alternatively, I have found the rental pool for single-family homes in my market to be deep. Depends on the quality of your product however. While entry and mid level homes are in demand, homes above the mid range can be difficult to fill w/ quality tenants. You also have to factor in the wear and tear that will occur on your new homes and the effect that this will have on value when the market improves and you are able to sell. Another factor to consider is market rent and whether it will justify your carry costs. If it makes sense to lease, add a "for lease" component to your sales marketing efforts. Have seen several projects in my area doing both simultaneously and successfully.
Jim Blanchard
Inland Real Estate
jblanchard@inlandgroup.com

Jul 15, 2010
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David L.
Owner/Investor
Atlanta, GA

I'am an investor that can move these homes fast. I'm looking to pick up a bulk of them at 40 to 50 cents on the dollar. If you can accomodate, I can take the majority of them and or all of them off of your hands. If you are interested, please e-mail me at kdarnellhouses@hotmail.com and leave your contact information, what city your properties are in. I'm located in Atlanta,Ga and I buy properties, commercial and residential all around the country. Thanks- David Lester

Jul 16, 2010
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Christopher Z.
Broker/Agent
Bethlehem, PA

I represent a builder who had trouble selling two luxury homes. Projected rent would not cover debt service and taxes. We had buyers interested but the buyers had trouble selling their existing homes. The builder took the buyers homes as a partial trade on the luxury homes. The builders's bank financed the smaller homes and we were able to rent the two traded homes for enough money to cover the debt service. Depending what price range your home or homes are in you may want to advertise that you will take a trade as partial payment. It should generate activity.

Jul 18, 2010
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marcie s.
NASHVILLE, TN

Had the same issue recently in luxury market, approach the bank with a note sale this is how I got my deal closed.
Marcie Sweet
Affiliate Broker
Keller Williams
615-596-2270

Jul 18, 2010
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Lorrie S.
Broker/Agent
Dallas, TX

Hi Jeff,
I have to agree with Jim. An auction, especially one without a reserve, will get the property sold by a specific date. Contact me for information about online real estate auctions.
Lorrie Semler, e-PRO, GRI, SRES
Keller Williams Dallas Premier

Jul 27, 2010
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