Posted by Mike Daly on March 02, 2002 at 08:51:53:
Do you really want to try to fix the house? Fire-damaged houses are big projects – I wouldn’t tackle that without having already done several other rehabs.
If it were me, I’d get it under contract for a nominal price (like $10.00), making it contigent upon finding a buyer to rehab the property. If you can get him to give you money to take it, you can write that in as a decorator’s allowance.
Don’t know on the insurance question.
How can this work?? - Posted by Frank Detroit
Posted by Frank Detroit on February 28, 2002 at 19:46:51:
I recently encountered this situation and I have done a few deals, but none that are this complex
I have a VERY motivated seller that wants to sell (if not give me or pay me) to take a home off of his hands, if we agree to fix the home. The city of Detroit is tearing down homes at a rapid rate as of now and this home has fire damage. His insurance company will not pay him until the home is fixed or is demolished. To have the home demolished it will cost him over $5000. This means that the insurance money (I believe $14,000) will be lost soon since the city has put a deadline on either tearing the home down or fixing it up. The homeowner?s options include loosing the home or paying to have it demolished and collect the insurance. He has no intentions of fixing the home.
I have offered to fix the home and he either pays me to take ownership or gives the home to me for nothing of very little. Since I have contacted him he has likened to the idea of selling the home to me. The details have not been worked out and I am contacting my attorney to see how to structure this deal.
How can I ensure that if I fix the home that it will be deeded to me? If I receive possession for the home before I fix it, will he still be able to collect his insurance?
Any advice will be appreciated.