• Trouble logging in? Send us a message with your username and/or email address for help.
New posts

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
600
Blue Mountain beach
www.lifeonshore.com
How does this stack up to Windswept where golf course lots 1/2 acre are down under $50,000.
You posted earlier that you were told the standard fare about the market being slow right now. The problem is probably not the market being slow. The problem is the buyers do not see the current value of the property. Once you lock in on the right price you will be amazed at how fast a home or lot will go under contract. Buyers are everywhere! They are sitting and waiting to pounce. The problem is can you stomach the number to get the contract...
Good luck and at least you are not alone.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
What are your annual carrying costs on this property? What is your mortgage rate? How much longer do you have on your military contract? Are you close to retirement or are you close to getting out of the military? Do you REALLY want to build a home and live in this location? If you are getting out of the military (or retiring soon) what are your employment prospects in that area (if you believe you need employment to live).
 

ieatwings

Beach Comber
Feb 18, 2008
12
0
What are your annual carrying costs on this property? What is your mortgage rate? How much longer do you have on your military contract? Are you close to retirement or are you close to getting out of the military? Do you REALLY want to build a home and live in this location? If you are getting out of the military (or retiring soon) what are your employment prospects in that area (if you believe you need employment to live).


With interest, property tax, and homeowners dues, it's costing us about $11k annually to hold on to it. We are commited to the military for at least another four years with an option to stay in longer if we choose. There is employment in the area, but the pay is significantly lower than other areas.
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
With interest, property tax, and homeowners dues, it's costing us about $11k annually to hold on to it. We are commited to the military for at least another four years with an option to stay in longer if we choose. There is employment in the area, but the pay is significantly lower than other areas.

I kinda get the feeling that you're not absolutely in love with the location of this property.

I also think you may just have the wherewithal (an officer, senior NCO or military couple maybe) to actually bring money to the closing table vs. just walking away.

I could be wrong <believe it or not, sometimes I am>

If this turns out to be simply a bad "investment" decision and your heart isn't into living on a golf course in the Northern Florida Panhandle, I personally wouldn't throw good money after bad by building a house and living there "just because."

I don't think walking away is the right thing in your case--especially if I'm right that you've got some money they can come after. Additionally, I think the military might frown on someone who willingly skips out on their financial obligations and it's not exactly a career-enhancing move.

As I see it you've got a few choices--neither is good news:

(1) Mark the property down to a "hair on fire, I've gotta get out from under this property" price and get with your bank to finance what remains of the note after the sale. I know it will suck paying for years on a property that you don't own anymore, but that's the "risk" side of investing...you just happen to have to pay a higher tuition to the School of Hard Knocks than some.

(2) Hang on to the property and continue paying $11K a year and hoping you can break even sometime down the road. It's a big gamble but it is also an illusion since "breaking even" usually means "even" on the original purchase price and doesn't account for the Time Value of Money and fact that you are sinking an additional $11K per year, every year into the property.

If you can't afford the $11K per month and it is putting you and your family in a very <and I stress, VERY> bad situation--by that I don't mean that you won't be able to afford that 2nd BMW or take the family to Europe for the summer--you might want to connect with your base JAG or Financial Services Rep and go over some other financial options.
 
Last edited:

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
600
Blue Mountain beach
www.lifeonshore.com
(1) Mark the property down to a "hair on fire, I've gotta get out from under this property" price and get with your bank to finance what remains of the note after the sale. I know it will suck paying for years on a property that you don't own anymore, but that's the "risk" side of investing...you just happen to have to pay a higher tuition to the School of Hard Knocks than some.

.

This can actually be done. It will be very difficult to do without being late on any payments but if you persist you may get lucky. I have a few clients that pulled it off last year! The bank closed on the short sale without the seller being late on a payment or having the back end of the deal worked out. One of the sellers is still working the deficiency out. I will say that the sellers worked very hard to make this happen. Daily bank calls! Good luck.
 

ieatwings

Beach Comber
Feb 18, 2008
12
0
I kinda get the feeling that you're not absolutely in love with the location of this property.

I also think you may just have the wherewithal (an officer, senior NCO or military couple maybe) to actually bring money to the closing table vs. just walking away.

I could be wrong <believe it or not, sometimes I am>

If this turns out to be simply a bad "investment" decision and your heart isn't into living on a golf course in the Northern Florida Panhandle, I personally wouldn't throw good money after bad by building a house and living there "just because."

I don't think walking away is the right thing in your case--especially if I'm right that you've got some money they can come after. Additionally, I think the military might frown on someone who willingly skips out on their financial obligations and it's not exactly a career-enhancing move.

As I see it you've got a few choices--neither is good news:

(1) Mark the property down to a "hair on fire, I've gotta get out from under this property" price and get with your bank to finance what remains of the note after the sale. I know it will suck paying for years on a property that you don't own anymore, but that's the "risk" side of investing...you just happen to have to pay a higher tuition to the School of Hard Knocks than some.

(2) Hang on to the property and continue paying $11K a year and hoping you can break even sometime down the road. It's a big gamble but it is also an illusion since "breaking even" usually means "even" on the original purchase price and doesn't account for the Time Value of Money and fact that you are sinking an additional $11K per year, every year into the property.

If you can't afford the $11K per month and it is putting you and your family in a very <and I stress, VERY> bad situation--by that I don't mean that you won't be able to afford that 2nd BMW or take the family to Europe for the summer--you might want to connect with your base JAG or Financial Services Rep and go over some other financial options.


Thank you for the advice. At this point, we are not even considering walking away from the lot. We both have excellent credit and would not want to ruin it. We can carry the annual expenses indefinately without any financial strain, however I question when, if ever, the property will appreciate enough for us to recover some of what we have lost. So I've been asking myself if it's better to cut our losses and let go now at a rock bottom price or wait it out and try again in a few years. From the responses I've received, it sounds to me like I will be better off holding onto the property for a while. It's been a little scary, since we are fairly new at property investing, but we are learning as we go! Thanks so much to everyone for all the advice!
 

traderx

Beach Fanatic
Mar 25, 2008
2,133
467
Thank you for the advice. At this point, we are not even considering walking away from the lot. We both have excellent credit and would not want to ruin it. We can carry the annual expenses indefinately without any financial strain, however I question when, if ever, the property will appreciate enough for us to recover some of what we have lost. So I've been asking myself if it's better to cut our losses and let go now at a rock bottom price or wait it out and try again in a few years. From the responses I've received, it sounds to me like I will be better off holding onto the property for a while. It's been a little scary, since we are fairly new at property investing, but we are learning as we go! Thanks so much to everyone for all the advice!

That would be my guess. If you are coming out of pocket @ $11k annually, the present value over five years at a 6% discount rate is $46k. The problem with a fire sale is that you don't have a good idea of what price it could sell for. I guess you could knock $40k or so off the price but not sure that would mean much in this market. If you plan to eventually build and live there, it puts it into a little different perspective. As rates continue to drop, at some point you may want to consider refinancing to lower your payments. Also ensure that your property taxes are in line with the new value.

Good luck.
 

GoodWitch58

Beach Fanatic
Oct 10, 2005
4,816
1,921
Not sure(and don't want to know) which Realtors you have used; but I would recommend Teel and Waters in Crestview if you have not used them.

They have been in the area forever; and have an excellent reputation. from looking at the MLS for that area, I do not see many recent sales of vacant lots.

Laurel Hill is more the Crestview market than South Walton as some else posted, I think.
 
Last edited:

Matt J

SWGB
May 9, 2007
24,643
9,496
Thank you for the advice. At this point, we are not even considering walking away from the lot. We both have excellent credit and would not want to ruin it. We can carry the annual expenses indefinately without any financial strain, however I question when, if ever, the property will appreciate enough for us to recover some of what we have lost. So I've been asking myself if it's better to cut our losses and let go now at a rock bottom price or wait it out and try again in a few years. From the responses I've received, it sounds to me like I will be better off holding onto the property for a while. It's been a little scary, since we are fairly new at property investing, but we are learning as we go! Thanks so much to everyone for all the advice!

I don't believe a short sale adversely affects your credit if you pay off the difference.

Bobby J that's your cue...
 
New posts


Sign Up for SoWal Newsletter