Updated over 12 years ago on . Most recent reply
Risky real estate development project
Scenario:
Investor purchases building in North Miami in fairly dilapidated state.
3200 sq ft block construction with no doors, windows, electrical, drywall etc
At time of closing investor is informed an additional $5000 is payable to Miami City as a 'bond' and the property must be fixed up within one year.
Repair quotes for property vary from $110,000-$180,000.
Investor flies in contractor from interstate who rehabs entire property with everything meeting code standards, for total cost of $35,000. Note: contractor is not licensed in state of Florida and no permits are acquired.
Property is completely fixed up, looks fantastic, everything is to code standard and functions well.
Obviously there is going to be a fair bit of headache and costs to ensue regarding not acquiring permits. Any advice? Any chance of getting bond back?
Is there any way to find out exactly what the City will know was undertaken, as opposed to what was existing? As in, is there any degree of fudging that's possible like claiming electrical and mechanics were already in place and there was only drywall work done?
PS this risky move was taken on the assumption that the fines and hassle would be less than $75,000 which is the difference in price for the cheapest repairs quote with permits.