Resell or Hold?
When deciding whether to sell for a small property or hold on it it, it depends on what financial situation you are in. If you have a cash flow it is highly recommended holding onto the property, eventually the market will go back up. If you are losing vast amounts of money however, short sale and get out of the deal. Look at your financial situation and do what works best for you.
Deciding whether to resell for a smaller profit or holding on to the property depends on a couple different factors. First of all, you need to know what kind of market you are in. Some markets are seeing very large dips, and others are only seeing small dips in values. If you are cash flowing, even if it is just a little bit, I would recommend to hold it, if you can.
In this down market, its only inevitable that things are going to get better. The reality of the situation is that in two, four or five years we will see an improvement. This is where a lot of money is made right now. This is where people make their retirements right now. That would be my initial thought on it is if you can afford to hold, you're not strapped for cash, it is making you some money and not costing you anything I would recommend you hold the property.
About 20% of the states are in the situation, where they properties are upside down, and people are losing a lot of money in their properties. If you are in a situation like this, you may want to think about your alternatives, because credit can always be repaired. If you are dropping so much money, negative cash flow each month and your property in only worth 70% of market value, short sale them and get out of them.
Let's say that properties are worth $150,000 today and you can see that you're in a declining market and you're negative on the cash flow, then you might sell it for a small profit or a small loss if you have to.
It just depends on your particular situation. If you can purchase properties and you're in a situation that you can hold them in cash flow, now is the time to do it. Now on the other side if you're in a situation where you need immediate cash than wholesale.
Some of you are saying what about buy, fix and flip? I can tell you that right now my recommendation for people is if you want to do that business you're going to need to get it way below market value so you can sell it way below market value to get in and out of it very quickly if you need fairly immediate cash.
Otherwise I'd recommend buy, fix and rent, because it's just a sign of the times of were are right now. I just don't want to see buy, fix, hold it on the market for 12 months and not be able to get rid of it and then wind up losing money. Any strategy can work you just have to know the numbers.
It's hard, because there are two factors that I see in play and it varies from wherever you are. One is your financial situation you have to know what you can do and what your bank account will bare. The other is the local market. Those two things will most likely dictate what you end up doing so it is very hard to give one answer across the board. If you look at your financial situation and what you can do at this point and time in your local markets and what the conditions are, it'll help you make your decision.
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ABOUT THE AUTHOR
Heather Seitz is a national real estate investor, trainer and publisher and has worked with top advisors worldwide. To get current and accurate real estate investment tips and advice, visit http://www.RealEstateRant.net and find out how you can get $852.90 in FREE real estate investing information delivered to your front door.