my brother bought a house for investment last year and now he cant sell it.He is renting it and paying $1000 out of pocket to cover the morgage should he forcluse the house.He also ownes another home.
2006-11-04 16:02:46 · 4 answers · asked by broken heart 2 in Business & Finance ➔ Renting & Real Estate
If the house is in good shape and in a good area, try to keep it. Forcing a sales will mean selling at a low price. Now, if he can't even have enough to pay the mortgage, then that's a different story.
2006-11-04 16:06:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
#1-He should not be loosing money on this rental, he isn't charging enough rent. Rule of thumb is 1% of the value per month. ($100,000 house = $1,000 month rent).
#2-Change Realtors, or if he doesn't have one, get one. Some realtors purchase homes too, for resale or rental properties, he can make some phone calls.
Foreclosure will only set him back, like a bankruptcy. He will get income tax credit back from his loss if he can hang in there.
Rentals are difficult to sell because the renters resist it, don't want to move, and can sabotage a showing. He would be better off putting the price low enough and maybe taking a small loss than foreclosure.
Tell him to hang in there, if he can!
2006-11-04 19:35:12 · answer #2 · answered by Barbara 5 · 0⤊ 0⤋
This is bad. he probably over paid for the property and cannot even break even. He has no choice but to continue rent it out and put out $1000 a month. If he goes into foreclosure that will kill his credit. He can claim a loss on this property against his income if he is in the real estate profession and when the market gets better sell. If he sells know he is guaranteed to lose.
2006-11-04 21:15:37 · answer #3 · answered by tianaramal 4 · 0⤊ 0⤋
Hello,
I completely agree with wanting to invest your money. Afterall, what's the point of making money if you can't make more money with your money (got that?)? Anyway, I've tried all different investments from stocks and bonds to IRA's, 401k's, and real estate. I'm really a big fan of diversification.
However, the only investment I've really been happy with so far is real estate. Over the past 5 years, I've bought 3 different properties (all have tenants, and I'm making more than the mortgage payments on 2 properties).
The 3rd property I got was using Carleton Sheets no money down methodology (he's a GURU in real estate, and yes, his methods do work!). You can actually buy a property for absolutely nothing down (NO MONEY FROM YOUR OWN POCKET). I payed over $500 for his course 3 years ago, and I just saw it online for $9.95!!!! This is a steal at $9.95 (I'm actually going to buy it for my friends for Christmas). It was featured on TV, so I got the website from there.
Before you invest in anything, I highly suggest the Carleton sheets course. http://www.alllsite.info/real-estate.php
2006-11-05 02:30:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋