Abandon Building--I think I see an opportunity

Bird Dogs, Wholesaling
1

I was walking down a street on my way to school and I seen a couple of crackheads standing in front of an abandon building. I looked inside and the place looked completely trash! I typed in the building address on zillow, Redfin and other online real estate websites, but the building never came up (So, Im praying the building is not on the mls). I typed the address on Assessing online and got the owner’s name and mailing address, but I really want the owner’s phone number. Do any of you guys know where I could get free phone numbers? I went on yellow pages, white pages and 411 online but they all charge a fee. Im looking for comparable sales as we speak. As soon as I get good comparables im going to contact the seller.

The property has been abandon for about a couple years now.
The assessor office records say its a 4-6 family, but it looked likes a 3 family from the outside.
The records also sho wthat the property has gone up in appreciation.

My exit straetgy is to wholesale the property

2

Hi,

My wild guess would be that this properties cost to remodel / rehab exceeds the current market value of the property.

Investors just don’t overlook a property for a year or two without looking at it and running the numbers.

There are a lot of properties around the country which do not make financial sense which will eventually be torn down.

              GR
3

Of course the price to rehab and get it back in shape will be well over the current market price which is why I’m going to buy it at a deep discount. The reason why i think the property was over looked was because its not on the market. There’s not a lot of investors where I live that know how to structure these types of deals. I send a letter to the seller yesterday since I can’t get the owners number.

4

Hi,

Of course the price to rehab and get it back in shape will be well over the current market price! So why would you buy it?

The cost to Rehab a residential property could exceed $60 to $65 dollars a square foot! 10,000 square foot property, $650,000 rehab cost!

Buy property for $1.00 (One) US Dollar - If value is only $500,000 then it’s way upside down!

Purchase price plus rehab can not exceed 65 to 70 cents on a dollar or you make no money by the time you pay purchase and sale cost’s!

                GR
5

As Gold River said, this is a dog. Run don’t walk away from it. On to the next one. :beer

6

65 dollars a sq foot is way too much! It doesnt need a full cosmetic job, the outside of the property is not in bad shape its just the inside of the property that needs some T.L.C. From my experience it shouldn’t cost any more than 20 dollars a sq foot…if it does than I wont bother wholesaling it…but trust me it doesnt cost 65 dollars a sq foot. The house is not a mansion. They dont build 10,000 sq feet residential properties where I live. The house is only about 1400 sq feet. If I was to get a rough estimate like you did it shouldnt cost any more than 28,000. I want to wholsale this property because I know I could get it well below the replacement cost. I dont want to walk away from this property until I talk to the seller.

7

This was your original post! Building? Completely Trashed? Abandoned for a couple of years? Assessor Office Records say it’s a 4-6 family? Looks like 3 family from the outside?

“Of course the price to rehab and get it back in shape will be well over the current market price? Which is why I’m going to buy it at a deep discount?”

I just happen to own a single family home we just rehabbed, we spent $64.28 per square foot for the remodel! Is it a house or is it a 4 to 6 unit building? My example was a 10,000 square foot building but I could use an example of 5 square feet or 5 million square feet, it is still an example!

Now your first post indicates it’s been abandoned for years? Is 4 to 6 units by county tax records? And that your going to school?

A 4 to 6 unit building must be minimum 2200 square feet, unless there bachelor unit’s and then I would not buy them, but a proper 1 bedroom / 1 bath will be 550 square feet per unit! Now I have to guess your profession is not construction management or engineering?

When you rehab apartments you have x number of kitchens, x number of baths, x number of electric meters and panel boxes, x number of windows, x number of doors, and x number of floors, etc! There is absolutely no way you would come even close to $20 per square foot!

Just to build a trac home today in a 200 or 300 home development will cost $75 to $80 dollars a sqare foot just to build the structure, this does not include utility taps or runs, does not include the lot value, does not include entitlements, assessments or soft cost’s!

Let’s make a list:

  1. Foundation
  2. Electrical
  3. Plumbing
  4. HVAC
  5. Framing
  6. Roofing
  7. Siding
  8. Windows
  9. Exterior Doors
  10. Exterior Trim
  11. Rain Gutters
  12. French Drain
  13. Basement Foundation Sealing
  14. Sewer Line
  15. Water Line
  16. Gas Line
  17. Power Line
  18. Meter Can Box
  19. Chimney or Brick Masonry
  20. Flat Concrete Walkways
  21. Insulation
  22. Drywall
  23. Taping and Texture
  24. Interior Doors
  25. Interior Trim
  26. Bathroom Fixtures
  27. Tile Work
  28. Kitchen Cabinets
  29. Counter Tops
  30. Appliances
  31. Flooring
  32. Lock and Key
  33. Finish Lighting
  34. Finish Plumbing
  35. Painting
  36. Misc Finish
  37. Landscaping
  38. Irrigation

Now you mean to tell me it’s only going to cost $20 per square foot to rehab a building that’s been sitting abandoned for at least a couple of years?
You have to be kidding yourself!

                               GR