Hello all,
I have really enjoyed reading these posts. Thanks Mike (AHR) for pointing me in this direction.
I have been reading about REI for the last couple of weeks and am very exciting about the things that I have been reading and about the potential it holds. While I am taking on as much info as possible and at times feeling overwhelmed :eyes I am also working to gather a list of potential investors and what types of transactions they prefer. Please feel free to email me. tradian@austin.rr.com. Also would appreciate any one willing for me to ping them with questions from time to time. right now most of them have to with the closing process and contracts.
I have just started to scratch the surface on some properties and have come across one that has me asking some basic questions.
This particular prop is listed with an agent but has been on the market for 250+ days. From the outside, the home looks a mess. Siding rotted on the bottom pretty much all the way around, converted garage and the listing states that there has been a foundation repair but engineer survey to certify that it is ok. This leads me to my questions.
As rehabbers, what is preferred when a foundation repair has taken place…I have heard that this screams…RUN for the hills…
Comments Welcome:
Also, what are the general thoughts on working with listed properties. I would assume that it depends on how good a deal it is and if the seller is truly motivated even when selling through an agent.
Thanks for the input and the great site. I look forward to reading and corresponding in the future… I have lots and lots of questions but need to organize them first…
Travis
tradian@austin.rr.com
That’s my first question! I’m still pretty new to the rehab business myself but my first question to the foundation issue is why is it still settling? Was it a cheezy repair or is the land/lot conducive to soil movement. What’s the point of picking up a cheap property if you have to spend all your profit every 10 years fixing the foundation. There are too many other houses out there. I looked at a similar one recently that was in the same boat. Huge house, recently rehabbed, with good cash flow but with major foundation issues (can we say “fun house”). I could tell just by looking at the lot that it has huge issues with water drainage and the lot is too small to really do anything about it. Also, it seems it would raise lots of questions when you sell it. If I saw a house that disclosed it had already been leveled twice I’d be walking the other way. Next!!
Just my .02 I’d like to hear comments from other more experienced rehabbers about this. Good Luck with your RE ventures.
Hi -
Is the foundation still settling? Why?
Often, these things look worse than they are – and a lot of folks simply take one look and run away.
Usually in each REI area, there is one or two people specializing in this type of problem. Ask around.
Also, keep in mind that while cracked foundations may (or may not) hurt the eventual resale value (marketability), it rarely (if ever) affects the amount of rent the property can command.
You might want to rethink your strategy to include some long-term rentals.
Take care,
Eric C
Well am too the new one to the business as well as to the fraternity , here to get more information about the real estate. hope this forum stays would help me.well…thanks to admin for allowed me here.
I usually don’t run because a house is settling. Almost all houses settle in some way.
The only time I run for the border is when the property has an oil tank and the tank has leaked and caused an environmental issue.
Or if the previous owners don’t know if the oil tank has leaked and you buy it only to find out $30k to $100k later that it did!
So I do not get involved if there is an oil tank and they cannot prove that the tank was filled.
Good to meet you…
Listed properties are some of the most expensive and if not most definitely the cost of the advertising is too extreme… If the price was in line with what it would need to be why would it ever sit on the MLS… As a Broker I would never let it hit the MLS if the seller were willing to discount the price.
As for the repairs or obsolescence factors… The more the better in most cases. Foundations run about 10 dollars a square foot and just arent that big of an issue.
Besides if an engineer says its ok that’s all youll need… I would rather buy before the engineer gets in the way , but thats just me.
Good luck
Michael