Condemned Property

8 Replies

When wholesaling a condemned property, what needs to be done to take this status off of the house? Would this be done by me (the wholesaler) or my end buyer? I assume it will need an inspection, but don't know much past that? Any thoughts?

AFAIK, a condemnation only means that the property isn't legally habitable; you can still buy/sell it. That said, the list of violations is likely long and severe enough to make the improvements (structure) worthless, so you're really just selling the land.

The amount and cost of work you'd have to do to bring the property up to code would probably not make you a wholesaler on this one.

I think you could wholesale it depending on how you structure the deal. I would and have bought condemned properties. It will all depend on the structure and how the numbers play out in that market.

To change the status is going to take some money in repairs, most likely. My answer would be the end buyer will take care of that. Your job is to get the property at a good price and sell the vision to the end buyer. Most rehabber who know what they are doing won't care as long as the numbers tell a profitable story.

Condemned could mean a good price to purchase. the last condemned house I bought was a private seller and we scored a great deal. We did have to do a dance with the city to make it livable, but it was worth the dance.

Good luck

Thanks for all the responses you guys!

@Cameron Sharp Thanks! I did have a contractor/fix and flipper come look at it and for the price I'm getting it at (5k or less) he said he would even be willing to buy it if he wasn't in the middle of a flip but gave us the number of a guy who would be interested. My main concern is getting it for an investor who won't be afraid of the condemned status, but I think you may be right!

If the price is right and the investor is experienced, they will see it for the future value.

sounds exciteing :)

Originally posted by @Cameron Sharp :

I think you could wholesale it depending on how you structure the deal. I would and have bought condemned properties. It will all depend on the structure and how the numbers play out in that market.

To change the status is going to take some money in repairs, most likely. My answer would be the end buyer will take care of that. Your job is to get the property at a good price and sell the vision to the end buyer. Most rehabber who know what they are doing won't care as long as the numbers tell a profitable story.

Condemned could mean a good price to purchase. the last condemned house I bought was a private seller and we scored a great deal. We did have to do a dance with the city to make it livable, but it was worth the dance.

Good luck

Hi Cameron,

I haven't done my first deal yet, but came across two condemned MF units yesterday. I spoke with a buyer who might be interested...we are supposed to discuss details tomorrow. What would make a deal like this profitable? Do I still need to calculate CAP rate? I'm not really sure how to approach this. Please help...Thanks in advance!

@Junior Salters , did this deal ever close? If so, what did you do to convince your end buyer to purchase the property? 

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