NEED ADVICE PLEASE

[acreage]

ILL TRY TO KEEP THIS SIMPLE
put $30000 down on 20 acres six yrs ago owner financed @ 8.75 (30 yrs)
owner wanted to sell another 20 acres 0 down 8.75 then another 15 acres at same. Then on same parcel bought six acres & large mobile home with shop for $105000 owner financed again same terms.Seller had 63 acres beside mine pine trees cut and I had mine thinned got 10000 which we took off selling price of the six acres and mobile home. I put in 2 wells and septics moved in another mobile home and rented the other lot. Intentions were to keep the momentum then sell off the mobile homes and build small starter homes.the county I live in changed the ordinance to no more than three mobile homes on property and one had to be owner occupied.Stopped the plan in its tracks or change all land to commercial (very expensive).I have to shed some of this which is most logical?My thoughts were to let all land go and hold the six acres with mobile homes on them i have other mobile homes in parks so i know all about rentals just in over my head or should I keep the 20 acres with the $30000 equity,This property has a well and septic and i own another five acres on the other side of it (not through same person)so it would not be land locked. I hope this isnt to confusing but ive been told when the ship is sinking you throw the heavy stuff of first, but what would that be?ANY ADVICE WOULD GREATLY BE APPRECIATED

[furnishedowner]

acreage,
Sorry, but I am really confused.  Could you maybe make a chart? 

Parcel 1...20 acres, bought 2005, $30 K down, owner financed 8.75% 30 years, payment _____, total debt___, Value today___Equity____.

Parcel 2...
etc.

Maybe this will help you get clarity on your situation as well.  Good luck.

Furnishedowner

[acreage]

Parcel (1)  20 acres @3000 per
60k   30k down  8.75@ 30 yrs pymt  $236
Parcel (2)  20 acres @3000 per
60k    0 down  @ 8.75  30 yrs  pymt  $472
Parcel (3)  15 acres @3000per
45k   0 down  @ 8.75    30 yrs pymt $354
Parcel (4) 6 acres w mobile homes was 105k but we took 10k of top for timber to owner so
95k   0 down @ 8.75  30 yrs  payment $747  I recieve $650 monthly on one mobile home I recieve $100 lot rent from one lot  third lot is not rented but will be $450 monthly so the parcel with the home on them will have a positive cash flow of about $450.keep in mind this is rural property so Im not sure what the value of the land is now but the owner has been trying to sell his 63 acre parcel next to it for five years and not a bite on it. Im not sure of the value of the six acre parcel with the mobile homes but at least down the road i could possibly still do the starter homes.I feel parcel 2and 3 are a no brainer but parcel 1 with the equity in it and the payment is not a bad choice either because things can always get out of hand with rentals (expenses)etc and as I said it backs up to another five acres I already have and could technically move the two mobile homes over on, seeing all this land is connected  I do know its really confusing for me hope this helps.Thank you for your response.

[furnishedowner]

acreage,
The seller of these lots is the same individual?

No land is selling there now?

You can't sell any one parcel and keep the others?

I'm betting that the seller/sellers of those lots don't want them back right now.  They also maybe don't want the expense and hassle of foreclosing on them, and having to try to re-sell.

How about just going to them for a meeting--ask for a 2-year break on making the payments:  "Mr. Seller, I can't make the payments on Parcels x,y, and z.  There are no buyers.  I will resume payments in 24 months, God willing.  If not, then I will give you a deed in lieu of foreclosure."

Negotiate! Just get a "No payments, no interest accruing" moratorium.  The seller is an individual, not a bank.  The seller can do whatever he wants.  You just need to convince him of what he wants.

Continue making the payments on the lot that you paid $30K down on.  Figure out how to get mortgage relief on the other parcels.  Keep getting the mobile home rent...

You are in a complicated situation, and only you can solve it.  Keep studying it and come up with a script to take to the sellers.  You are not a deadbeat, but affected by the economic downturn like almost everyone else.

Furnishedowner

[acreage]

Ok I spoke to the lender this morning and explained to him I had alot of restructuring I was trying to get in order. I basically told him I was hashing it out with my lawyer and accountant and could he give me a couple of days to get back with him. He has always been a great person to deal with business wise and still is. Basically I know he counts on my payments for his income (majority wise) and ive always paid on time to him.He let me know how he appreciated that ,but I could tell in his voice he wanted to offer me something so we talked and his offer was this. Its a piece of land I almost bought from him in or around the same time but hesitated so as to not get stretched thin.But his offer was this
cancel our current contracts,he is going to put his home up for sell ,I have to notify the tenant in the large mobile home that we have changed ownership of the property and she would have to move as soon as his home sold (he originally lived in that home)and was going to move back in. In exchange I would be able to remove my single wide off the property (I have several in mobile home parks so no biggie)the other person renting the lot can stay as he knows this person also.I would recieve a one acre parcel closer in town with a 1800 square foot home and 1100 sqare foot garage with current good paying tenants @$850 a month.Free and clear to me as he knows how much ive got invested in the other property.To me this sounds like a good deal ,dont want to rush into anything as I explained to him let me hash everything out and I would get back to him within a week.I know when I was looking into buying the property before it was @115k asking price.

[mcwagner]

plant timber

[jimboslice]

I would keep Parcel 4 for cash flow.  Get the 3rd unit rented and take down the cash flow!

If you are strapped (sounds like you are) then sell parcels 1, 2, and 3.  They have monthly payments and do not generate income for you.  Use proceeds of those sales to make sure that you are bringing as much rent as possible on parcel 4.

Bottom line:  You need a great Realtor for parcels 1, 2 and 3