From what I've read, Category 3 vacant buildings are to be avoided. That said, my nature is to try to solve problems and turn a negative in to a positive. As a Category 3 property, the owner of the property must bring the property completely up to code. What happens if that "owner" is a bank? Is there a way to work this so that a sale can go through? Does anyone out there have experience with these Cat 3 properties?
@Joe Schaak , I've not done any deals in Saint Paul yet, but have heard the same thing. Wish I could help you, but I will be very interested in what you find out.
@Joe Schaak, here is the contact info for the person I spoke to in regards to a Category 2 home I was looking at. He was super helpful and answered all questions.
If Category 3 is anything like Category 2, you have to submit all forms and work orders and sources of financing and have everything approved BEFORE you can close on the property. And then of course follow ups to get the certificate of occupancy.
@Sam Sharma Thanks, Sam. Yes, I know Reid. He's great. I was hoping to hear from an investor that may have experience from our side since Reidis limited in what he can or can't recommend being a city employee. Category 2 allows the property to be sold once the Code Compliance report is completed and the Buyer demonstrates a plan and financial resources. Category 3 doesn't allow the sale until the property is brought up to code which means theoretically that the banks will need to spend the money and fix things. There's just no way a bank is going to invest money in to a property to sell it.