Posted by brandoncbsre on May 07, 2008 at 06:43:01:
In Reply to: Financial crunch - looking for answers posted by Rick Shepard on May 07, 2008 at 04:03:15:
Rick, I sure hope someone can help you. I am assume you have some seller-financed properties due to the fact that you have very little equity. If this is the case have you tried negotiating with them? Will they allow you to tack the accrued debt on top of the principal and make interest-only payments for 4-6 months? If you can get them to do this you can beef up your reserves a bit.
I hate to point this out, but this may be a great example of the dangers of over-leveraging. Ray has also written an article on the pitfalls of 100% financing.
Like I said hopefully with more info someone can give you some good ideas. If you are able to get out the mess be sure and really beef the reserves. With 35 units I'd probably want a $1000-$1500 a unit.
Good Luck to You!