Posted by Jeanne on December 15, 2000 at 10:27:57:
The REI club here in San Diego.
Jeanne
Anyone dealt with foundation problems? - Posted by Charity
Posted by Charity on December 14, 2000 at 10:28:29:
I have a woman who wants to get rid of a newer home that has foundation problems. She owes about $176K and the ARV is about $240. Her neighbor had the same problems (same builder) and had to have the home raised up and the foundation fixed (cost about 30K). The subject house already has problems because of the foundation. The Master Bath is unusable and the bricks on the front porch are falling down. Is it worth it to even look at this one?
Charity
Re: Anyone dealt with foundation problems? - Posted by Bud Branstetter
Posted by Bud Branstetter on December 15, 2000 at 12:38:04:
The suggestion has been made to flip to an investor. As an Investor I am going to want to know for sure what it is going to cost to fix. I’ve got one now that one company gave two estimates. Investor fix up for 5K or homeowner lifetime Cadillac at 16K.
The approach is to have an engineer look at it to define the problem and the solution. Then get multiple bids. They will vary.
Why not have the you or the lady get an engineers report and some estimates. She doesn’t have the money to fix so still wants wants to sell. Then you can flip to an investor that has the cash to fix and will make the profit they want. Don’t overlook insurance or class action suits.
Re: Anyone dealt with foundation problems? - Posted by Steve-Atl
Posted by Steve-Atl on December 14, 2000 at 14:00:40:
Charity:
In my architectural career, I’ve had plenty of experience with foundation problems. Bottom line…don’t attempt it unless you can get the property super cheap and can bring in the experts.
I like Jeanne’s idea of trying to flip it. You might offer the seller an option “subject to” the existing loan and advertise it as a “handy man special”. You might be able to get a down payment from an interested buyer (which you keep) and either assign your option to the buyer, or wrap it.
Good Luck!
Re: Anyone dealt with foundation problems? - Posted by Jeanne
Posted by Jeanne on December 14, 2000 at 12:07:09:
Hi Charity,
You might try to flip it to an investor who specializes in foundation problems. A few months ago, I came across 2 or 3 in my area from the SDCIA message board and the newspaper. One was willing to either pay a finder’s fee for the lead, or take an assignment.
Jeanne
Re: Anyone dealt with foundation problems? - Posted by Shenesa
Posted by Shenesa on December 14, 2000 at 11:52:28:
Hi Charity,
First I want to say that reading your post is an inspiration to me. I also want to thank you for responding to my e-mail I sent you this week about the letters.
Now, I have never ever dealt with a house that has foundation problems so I cannot offer you any suggestions in the arena. However, if your numbers are correct, it seems that there isn’t enough room (money) in this deal.
If the ARV is 240 minus what she owes 176 plus repairs of 30k would equal 206k. This is not including repairs in the master bath and possibly other problems not seen in house because of the situation and the holding cost. It would probably be difficult to sell this house and make a profit with the foundation problem in the area.
Just my .02
Re: Anyone dealt with foundation problems? - Posted by Greg
Posted by Greg on December 15, 2000 at 09:02:08:
SDCIA?
Thxs
Greg
Re: Anyone dealt with foundation problems? - Posted by cork horner
Posted by cork horner on December 14, 2000 at 15:21:54:
Hi—as a former builder in Minnesota and most recently in California, I had basements cave in and all of it imaginable. I also moved houses and buildings. The bottom line is that any building scenario is simply just that. What is important are the points made here about the numbers, profits and costs. Everything else is moot, imo. Perhaps the seller will joint venture. It sounds like a problem area for most of the houses there. I been there on that one too. Interesting scenario.
Run!! - Posted by Kyle McPeck
Posted by Kyle McPeck on December 14, 2000 at 11:55:36:
I’m still learning the REI thing but I know enough about building to tell you to run far away. It is not something you want to fool with.