Norada Real Estate Funding

  •  Home 
  • Apply
  • Deals
  • Notes
  • Podcast
  • About
  • Contact

Blog Question: Keep it or Sell it?

May 21, 2008 by Marco Santarelli

One of our blog readers submitted the following question:

“I have a home that was appraised at $130,000 this month. However, I think it's worth at least $200,000.  Would you agree to keep it until the market comes back up and try to sell then?  My ex-husband will rent it from me until then.  Thanks, Bev”

Well Bev, there are several things to consider:

  1. First, you need to find out what the property is actually worth.  What you think its worth may be completely different that what its really worth.  Contact a one or two local realtors and ask them to provide you with some sold comparables (“comps”).  They may even do a comparative market analysis (CMA) for you.  This will give you a very good indication of today's market value.

  2. Now, assuming the property is worth less than you owe on it – a situation that is all too common for many people – it is recommended that you hang on to the property until the market turns around in your area.  However, if you are suffering from a negative cash-flow situation that you cannot handle, even with someone renting it from you, then you may want to sell it to cut your losses, or better yet, find yourself a long-term partner to help cover your negative cash-flow in exchange for a percentage of the property.  Since there is no equity, your partner would be banking on the long term growth in equity as their return on investment here.

  3. If you do have equity in the property, then your two options are to either sell it or keep it.  Your decision here is a matter of personal preference.  Do you sell it for some immediate profit or hang on to it for the long term growth in equity.  again, you need to consider several factors like your local real estate market and personal cash flow situation.

I hope that was a little helpful.  We look forward to more real estate investing questions.

Filed Under: Real Estate Investing Tagged With: Investment Properties, Investment Property, Real Estate Investing, Real Estate Investment

About Marco Santarelli

Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property.  His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate.  He’s also the host of the top-rated podcast – Passive Real Estate Investing.

Real Estate

Quick Links

Blog Posts

  • Boston Real Estate Market Trends & Investment Outlook
    November 12, 2020Marco Santarelli
  • Boise Real Estate Market Trends & Investment Outlook
    November 10, 2020Marco Santarelli
  • Chicago Real Estate Market: Trends & Investment Outlook
    November 9, 2020Marco Santarelli

Contact

Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
  • Terms of Use
  • |
  • Privacy Policy
  • |
  • Testimonials
  • |
  • Suggestions?
  • |
  • Home

Copyright 2018 Norada Real Estate Investments