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condemned /fire damaged properties

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Stephen Moore

Real Estate Investor from america

Dec 26 '09, 05:39 AM


is there such a thing has having a list of either condemned or fire damaged properties?if so where would i look to get it from


Edited Jun 26 2010, 10:58


Jeff and Cheray Warner

Real Estate Investor from Grants Pass, Oregon

Dec 27 '09, 05:25 AM


Originally posted by Stephen Moore:
is there such a thing has having a list of either condemned or fire damaged properties?if so where would i look to get it from

Maybe from your counties Building & Safety Dept.? That's who would post a "Condemned" notice, not sure if they would sell or provide a list though.

Jeff


Edited Jun 26 2010, 10:59


Stephen Moore

Real Estate Investor from america

Dec 27 '09, 06:45 AM


yea im going to check it out,cause ive been noticing theres a good amount of properties with red signs on them,meaning not livable,i was thinking maybe if i could somehow go at the city to get those properties either rentable or bring them up to code maybe i can get in that market....another thing i gotta figure out how would i find the value of these properties...


Edited Jun 26 2010, 10:59


Eddie Ziv

Real Estate Investor from Studio City, California

Dec 27 '09, 07:20 AM


I was wondering why would you even consider such an adventure. Yesterday, I was browsing through some properties on eBay, and I came across one of those for like $750, but just consider the rehab cost (if possible) or the demolition costs.

Unless, the property is located where the land value is so high that it would render the deal worthy, I wouldn't touch it with 10' pole...


Edited Jun 26 2010, 10:59


Stephen Moore

Real Estate Investor from america

Dec 27 '09, 07:44 AM


thanks eddie,i was also thinking of that as well


Edited Jun 26 2010, 10:59


Scott R.

Real Estate Investor from Amarillo, Texas

Dec 27 '09, 01:03 PM


Have a buddy who has rehabbed several condemed properties and made money, but i think thats a pretty rare occurance. Problem is the city will ride your ass and EVERYTHING has to be brought up to code, and permits pulled for everything. Most people I know DO NOT pull permits for EVERYTHING, law or not. it just doesnt happen, they do it themselves or have day laborer type people do the work. This adds to your renovation cost significantly.
Not many people are willing to take on the project, so wholesaleing the property is going to be ALOT harder. basically you need to buy with the intentions of rehabbing it yourself.
I believe you have to go in front of the town concel and have a meeting with a panel to approve your rehab. Theres just lots of red tape that most investors dont want to deal with, time limits and such. plus if there bad enough to be condemed, normally they're in low class areas and need so much work you might actually lose money. It's weird to say in an area i love to invest in, the average house sells for maybe $40-50k, I buy at around $25k, but have passed on properties as low as $7k in the same areas.
-Scott


Edited Jun 26 2010, 10:59 by Scott R.


Jeff and Cheray Warner

Real Estate Investor from Grants Pass, Oregon

Dec 27 '09, 11:52 PM
4 votes


I would stay away from fire damaged but treat the condemned properties on a case by case basis. Just because a property is condemned does not mean it is a junker. I have 2 examples of recent homes that I have talked with the owner on one (and inspected the property with my contractor) and the other one I called Building & Safety and actually talked with the guy who posted the sign.

With the one I inspected, the owner had tenants that did not pay for 9 months and the Sheriff recommended that they have the property "Condemned" then the Sheriff can force them out, otherwise they would have to go through the motions of the court (which are in the tenants favor in OR).

The other one that I talked with Building & Safety about was "Condemned" because there was a homeless person living in the home (with the owners permission) without electricity or trash pick-up...as you can imagine the trash piled up and as far as safety they had candles for light which was not safe so they "Condemned" the home basically for the same reason, eviction.

Bottom line is you need to do your due diligence. The fact that these are "Condemned" properties you may be the only one actually taking a look at them.

Jeff


Edited Jun 26 2010, 10:59


Jeff and Cheray Warner

Real Estate Investor from Grants Pass, Oregon

Dec 27 '09, 11:58 PM
1 vote


Originally posted by Scott Ricenbaw:
I believe you have to go in front of the town concel and have a meeting with a panel to approve your rehab. Theres just lots of red tape that most investors dont want to deal with, time limits and such. plus if there bad enough to be condemed, normally they're in low class areas and need so much work you might actually lose money. It's weird to say in an area i love to invest in, the average house sells for maybe $40-50k, I buy at around $25k, but have passed on properties as low as $7k in the same areas.
-Scott

This applies to properties that have been Condemned for real safety issues, like a roof caving in or major foundation issues, etc. In those cases I would also STAY AWAY.

Jeff


Edited Jun 26 2010, 10:59


Mike Tooley

Wholesaler from Orange County, California

Dec 29 '09, 10:38 AM
2 votes


Not sure you want to do fire damaged properties. Even though the damage might not look like much, the rehab can be extremely high. You get some beams with a little bit of char....Replace it!! Also, smoke damage gets into everything!

Just had a buddy with a fire in his garage only....did not get into his house. Because of the smoke damage that entered the house, and the charred joists, the contractor pretty much had to gut the interior.

One little fire.....six months of full time rehab!


Edited Jun 26 2010, 11:01


N/A N/A

Houston, Texas

Dec 29 '09, 06:10 PM
1 vote


I just got a list today from my city with a few thousand records for $1. It is a list of all homes issued citations by the neighborhood protection board. It could be a fire job, condemned property, abandoned, nuisance, overgrown lot, etc. Got the property and owners address. Call your city or county because they do have a record and it should be public knowledge. We have investors here that buy burn jobs.


Edited Jun 26 2010, 11:01


Stephen Moore

Real Estate Investor from america

Dec 30 '09, 12:34 AM


thanks alot Justin,acutally man im looking for those lists in houston ,and i've noticed you're there as well,add me as a collegue


Edited Jun 26 2010, 11:01


Brian Haskins

Real Estate Investor from St. Louis, Missouri

Dec 30 '09, 09:20 AM


The fire dept keeps record of all fire damaged properties, it takes a bunch of calling around to find it but its out there. Condemned houses will come from the city or county. They will also give you the run around.

Brian Haskins


Edited Jun 26 2010, 11:02


Sam Teachenor

Real Estate Investor from Rancho Palos Verdes, California

Dec 31 '09, 02:23 AM


A possible usable piece of info from my Arriganto Monelongo seminar would be that in some cases you may be able to get the owner to assign the insurance pay out to you. If you can get the work done below the insurance companies assessed cost you can pocket that money as well.


Edited Jun 26 2010, 11:02


Chris B

Jan 05 '10, 02:13 AM
1 vote


My city actually posts all fires that they respond to on Twitter. If you can believe that.

Go to the fire departments web site, look around, and give them a call if nothing jumps out at you.


Edited Jun 26 2010, 11:06


Bill Gulley

Real Estate Investor from Springfield, Missouri

Jan 05 '10, 03:14 AM
1 vote


Hi, you guys can really cover a topic! Due to the extent of damage from fire, I don't even consider them, besides, there is a very good construction company in town that specializes in rehabbing fire losses! Another suggestion along these lines is that you might want to check with municipalities on any real estate they hold (ORE). Economic development programs make loans available in enterprise zones or for low/mod housing. Believe it or not some of these loans go under, contractors go broke, banks begin foreclosure and the government must pay them off to protect their position, I pick up a really nice tri-plex from the city that way with a funny money loan I assumed. Condemned properties can be OK, but you better know how to perform due diligence. These are transferred by special warranty deed excluding liens, title issues, damage, latent defects and any compliance issue. Bill


Edited Jun 26 2010, 11:06


Steve Babiak

Real Estate Investor from Audubon, Pennsylvania

Jan 05 '10, 05:06 AM
1 vote


Originally posted by Sam Teachenor:
... in some cases you may be able to get the owner to assign the insurance pay out to you. ...


Don't expect this to happen in properties that have a mortgage, since the mortgagee will want insurance payouts to be made out to the mortgagee to pay off the loan first.


Edited Jun 26 2010, 11:06


Steve Babiak, Redeeming Properties, LLC
Telephone: 6109082183
...


Demetrus Gibson

Real Estate Investor from Little Rock, Arkansas

Apr 04 '12, 09:14 AM


So can u assign condemn properties?
thanks



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