So I recently visited a property that was completely gutted to the bones. It’s considered an R1 but compliant as a 2 flat as well. I figured this is a great foundation to work with if I want to flip it. But it was interesting to see contractors tools left behind, and a permit paper stating a date of March of this year on the floor, so it looks like it was an abandoned rehab and one of the FOIA documents alleged to the contractor not finishing out the job to what they were paid for. I pulled the FOIA papers from the city and received lots of documents I frankly can’t seem to understand. I am essentially wanting to figure out what happened with this property -if there’s anything legally I should be aware of before pursuing placing an offer. The current asking price is way overpriced considering it’s not in a livable condition, especially compared to other comps in this area￼! Should I reach out to a real estate attorney or is there any other type of person out there who would be able to help go through these documents and consult me in whether this property is worth further pursuing? Would it maybe be worth me just reaching out directly to the owner and asking his side of the story? Any advice on what to do here with this gutted home and FOIA info would be greatly appreciated,
thank you BP friends!
@Angela Dani - Here's a good resource to use along with the documents that were provided in response to your FOIA request: https://webapps1.chicago.gov/buildingrecords/
You should consult an attorney to make heads or tails of what had and is going on and what the next steps would be.
IMHO (based on MANY PRIOR TRANSACTIONS), you can and SHOULD bid without TOO MUCH concern, as most Contracts have a 5 day escape clause for diligence and inspection related defects, EVEN IF the contract states that is for the sale of the property in it's AS IS condition.
Anyone that can decipher FOIA documents will be able to help you decipher FOIA documents. An attorney is a good bet. But a former or current city inspector, or a smart engineer, may know things. Or a fellow investor is usually a good bet. Generally you hire an attorney because you want to put a deal together though, not so you can understand whether there is even a deal there in the first place. That you ought to learn how to do as an investor on your own, which I think is a skill that will serve you very well in your work, in my opinion. I hope that helps!