Fixer upper with a general contractor and permits in place?

Question

Hi all, I have been flipping houses for several years but haven't seen this before and would appreciate your advice!

I have the opportunity to purchase a fixer upper that is half done. The current investor has a general contractor who has open permits for the entire project, so apparently I would take that over.  I would bring in some of my own subs. The numbers still make sense to complete it and sell it, but I am not familiar with the risks this might entail.  Any warnings?

Thank you!

Patricia

William Harvey · Answer

Haha probably a great decision! If it sounds too good to be true....

William Harvey · Answer

@Patricia Cote I would really dig into WHY they are looking to walk away from it. We've gotten 2-3 leads over the last few years where it is a similar scenario and for all of them, once we dug into things we realized there were issues. Usually, the issue was that the seller got in over their heads, paid too much, underestimated the rehab, or a combination of things.

I would put on your skeptic/detective hat and try to find out if there is something they know that isn't being relayed to you on the surface of things. If it passes the smell test and all makes sense, then move forward. But if anything seems weird, I would pass on it.