How can I map out my property debt situation?
My husband and I own 15 rental properties. I’ve found myself with an unsecured debt of approximately $80,000. I’m trying to figure out how to fix my monthly payouts.
Should I should sell a property or is there a program that I can borrow against a property to pay the debt with a lower payment? What would be the best advice?
The first thing I’d do is set out your situation so it makes more sense to a total stranger who might be able to help you. Given the fact that you own 15 rental properties, it would be sensible to tally up their value and deduct your debts to show what your net debt position is.
You say you have unsecured debt of $80,000, so are you suggesting that your debts are $80,000 greater than the values of the property? You don’t say whether you are having cash flow problems and this is usually a chief reason to sell an asset.
Summarise your situation and go to a bank and a mortgage broker and see if they can come up with some ideas, but have all the information they need.
It also sounds like a good financial planner could give you some sound views on what might be some alternative strategies.
Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
Published on: Friday, July 22, 2011blog comments powered by Disqus