Rehab Questions - Posted by Chris

Real Estate Investing
#1

Posted by JPiper on January 16, 2000 at 07:46:27:

The buyers lender doesn’t have an inspector. The buyers lender has an appraiser. An appraiser is not qualified typically to make judgments about repairs. Depending on the type of loan, the appraiser may be more aggressive about looking for problems…FHA/VA are known to some extent for this.

The question that comes to my mind is 1)Why you already had a termite inspection and treated and 2) why you are now repairing various termite damage. I don’t typically do these types of things until the buyer has had an inspection, and we have agreed on what is to be done.

My guess is that the entire rafter does not have to be replaced structurally…that a new piece of wood can be placed adjacent to the damaged wood and secured. I have seen this done frequently with fire damage and termite damage.

Will new wood be a red flag to check? Of course, but probably not by the lenders appraiser. But absolutely by the buyer’s inspector.

JPiper

#2

Rehab Questions - Posted by Chris

Posted by Chris on January 16, 2000 at 24:13:44:

The rehab house that I purchased had termite damage to one wall in the garage(sill plate,studs,ends of rafters). I had the termites treated for 1000 bucks. Anyway, my question is,I am going to replace the sill plate and the studs, but with the rafters, which are only damaged on the last six inches, can I just cover these up(with new soffit and fascia boards)? Will the buyers lenders inspector check thoroughly enough to discover this damage? Should I just go to the extensive trouble of replacing the whole one side of rafters? This is my first time doing this, how thorough are inspectors? Will seeing new wood be a red flag to check more closely in that area? Thanks for any help.

#3

Re: Rehab Questions - Posted by domineaux

Posted by domineaux on January 16, 2000 at 16:34:17:

You are having to spend enough money to fix the things that are wrong. Why should you have to spend more? Because you are integritable, and if it goes sore, which it probably will, you’ll have to do what is right. You may even lose a contract or two as well.

Cardinal rule, if you find something wrong and you have it in your power to do what is right. Do it. I know of people who covered up and hap-hazardly repair termite damage years before the property (so long before they had forgotten it) and they were sued within three months after the time they eventually sold it.

Can you be sure a new owner won’t expose accidentally or some astute inspector won’t find it. It’ll cost a lot more to repair it after you casually repair it and then cover it up. It is the cost of doing business, clear and simple.