Posted by Bud Branstetter on January 25, 2001 at 22:48:15:
You can get a builders risk policy for a not to bad price. This would cover you while you theorectically worked on it. Make sure it also has liability or get an umbrella liability policy.
Condemmed Crack House - liability issues - Posted by Roy
Posted by Roy on January 24, 2001 at 17:09:31:
I have the opportunity to purchase an unfit property by week-end for $500. I am confident that I will be able to resell the property for $4-5G within a month to a rehabber.
My question involves any potential liabilities that I might have. The house hase been declared unfit and is a popular hangout for crack users.
Thoughts?
Re: Condemmed Crack House - liability issues - Posted by Jim Locker
Posted by Jim Locker on January 25, 2001 at 10:34:54:
You need to evaluate your area and decide if you CAN flip the property for that kind of gain. If so, do it.
Joe Kaiser brings up a very good point, though. Were it to test contaminated, if you own it you get the bill.
Depending on your degree of intestinal fortitude, you might consider buying the whole neighborhood (if you can get them for that kind of price) and clean it all up. Your City would love you, and you could profit enormously.
However, it would be the hardest job you have ever undertaken, and it would carry with it significant physical risk to you.
Re: Condemmed Crack House - liability issues - Posted by JoeKaiser
Posted by JoeKaiser on January 25, 2001 at 09:14:23:
You may want to check out this article that appeared yesterday in our local paper.
http://search.tribnet.com/archive/archive30/0123a13.html
Joe
Re: Condemmed Crack House - liability issues - Posted by steph in tex
Posted by steph in tex on January 25, 2001 at 07:19:08:
I have bought homes in rough areas that have been gang hang outs were we found hypodermics and evidence of crack and other drug use. I have made some BIG cash on these deals. I love 'em, but then our “bad” areas may not be as “bad” as where you are.
As others have asked, how is the area? is this one house or a whole neighborhood? Even still @ 500 bucks?
You can afford to lose that money and just buy yourself a learning experience! I mean heck~ that’s cheap education in my book.
ANyway, just one word INSURANCE.
Seriously, just get insurance. You’ll need it. And make sure you’re covered for vandalism etc.
Then even with a minor rehab, you can sell it to someone who wants to live in the neighborhood, or there’s always the rehabber if you don’t want to go through the process yourself. Sometimes just a clean up can make you several grand.
Also, contact the cops in the area. I have had great success in working with neighborhood police. They have always been glad to help someone who’s trying to clean up the block. They drive by, and even check on the place for me from time to time. And cops in my neck of the woods seem to really like to check out property! I have gotten many deals from cops who see I’m cleaning up an area. They see this and say, hey how about that vacant place on ABC st?
Also, talk to the neighbors. Most don’t want crack heads next door. I’ll bet they’re happy to help.
Just some of my experiences. Good luck!
steph in tex
Re: Condemmed Crack House - liability issues - Posted by SCook85
Posted by SCook85 on January 24, 2001 at 22:52:42:
Roy,
If the entire area is a crack area, I wouldn’t consider the deal a slam dunk. Where I live I can buy homes for $500-$1000 all day long in the crack areas, and I can’t give them away to others. I have people willing to give me houses in such areas, and I won’t take them.
If this home is in a decent area, and the particular house is an isolated crack house, then I would go forward with it, but if the whole area is bad I wouldn’t consider it a done deal.
I’m speaking from experience.
Steve
This is what is concerning me… - Posted by Roy
Posted by Roy on January 24, 2001 at 21:37:04:
I can not assign it until late February. However, the deal for me to get it at $500 ends at the end of January. Therefore, I will need to acquire the prop and hold for a short period of time.
I guess that I was worried about the home catching on fire and burning down the rest of the block because of a crack pipe gone astray. Or, a potential buyer looking at the property and tripping over a large bong and beaking a leg. Those types of issues.
Ya What Liability ?? nt. - Posted by phil fernandez
Posted by phil fernandez on January 24, 2001 at 20:19:13:
nt.
Take it! - Posted by Paul_MA
Posted by Paul_MA on January 24, 2001 at 19:19:08:
Get it under contract, call all your potential rehabbers right away, tell them to bring their checkbook, and assign the contract to them.
What liability?