Posted by Ed Garcia on December 17, 1999 at 11:09:18:
R.K. Snider:
I want to address the last part of your question first.
{THE BIG QUESTION?}
The YARD maybe soaked will auto fluids which has escaped the EPA. Some are visible.
How do I find out about my liability after purchase.
ANSWER:
You don’t. You find it out before you purchase.
I’m sorry to say, that you may have to spend money on this deal to do an environmental report
From what you described, you would most likely do a phase 2.
That’s the only way to do this deal. It could cost you $1700 to $3000, and that’s if they don’t find you
have to correct or do a clean up. But then the property would have a clean bill of health.
If I was considering doing this deal, the first thing I would do is tie it up.
Then I would go to a salvage yard and see if I could get someone to come over and bid to take the wrecked
cars from of the location. (Now I would know how much I can expect to receive from salvage).
Then I would contact the individual that wants to buy the home. (By the way don’t forget to write
that in your offer. Tell the seller you would like to contact the potential buyer to verify that they want to buy). When contacting the potential buyer, I would cut a deal for the sale of the home. After cutting
the deal, I would tell them I’m going to have someone contact them to see if they are financable.
I would then have a mortgage broker pre-qualify them.
I see a nice no money down deal here if I can pull this off. If the buyer is not financable, then I can always
consider a sale with a seller carry back.
Yes there’s a little foot work in this deal, but it could be a nice little deal if done right.
Going in you would have made money on the sale of the cars as well as the home.
If I sell the cars for half of what the seller say’s, that’s $5,000.
If I can sell the house for $25,000 that’s of course $25,000. Total $30,000 going in.
Cost for environmental, $3,000, septic,$3,000, total $6,000. Of course there are going to be other expenses,
but I think you can see it’s worth tying the deal up to see what could materialize.
I did not address the other items in this posting because it’s just gravy. You would have the seller carry
you for the difference between the sale of the cars and home to do a 100% financing as well.
There so many ways this deal could be worked.
Don’t be afraid of the environmental issue, just address it. Many times you can get them to come out and
tell you what kind of report you would have to do and what cost can be expected. Remember everything’s
negotiable.
Good Luck,
Ed Garcia