All Forum Posts by: Patrick Fraire

@Bryan Devitt 

Good to hear man! I will look into the screw jack system you mentioned!

@Account Closed

This is great info thank you! So what made you learn your lesson? How much $ was there in damages due to the foundation. 

That foundation sounds identical to mine. 1/3rd of it is a basement for water heater. The other 2/3 is individual wood posts sitting on seperate small concrete footings. I believe this is why the home is settling different amounts in different areas. Each posts has its own footing basically. No slab to keep everything acting as one. It has a lot of variables that way. 

In my opinion there is a right price for everything. I'm wondering how much $ this will actually equate to over time. The current owner bought it like this 10 years ago. And it hasn't cost him a penny. I'm thinking I would pay $5,000 up front for bracing and call it a day. Does having a crappy foundation really affect the value, rents, or operating costs? 

Can you clarify what you meant by saying it wasnt caught when you sold but realtors would know about this? Did the buyer of your property have the home inspected? Did you ever have the foundation repaired or just the window? 

You can get by the 2 year of work experience if you were in school. Talk to lenders in your area they will give you a lot of info. Start the convo by asking if they have done an fha loan on small multi family before. 

@Bryan Devitt Thanks for the input. I was starting to think I was crazy for not walking away immediately lol. I appreciate your opinion coming from the contracting end as well. Have you ever dealt with structural repairs in your line of work?

@Account Closed definitely not going the year down route. Do you really think the house will have to be torn down? Talking around to local investors. Settlement and foundation issues seem to be normal for houses built in the 1930’s in this area. Locals are not freaking out. One guy I talked to bought a house and found a log was being used to support the frame 😂. He’s owned it for 10 years and kept it like that lol

@Aaron K. yes lender is aware. He has been involved every step of the way. Fha appraiser did not catch the foundation crack. I hired a third party inspector that caught it. I hired him because I saw one of his reports on a house I was flipping. He is very thorough. Will crawl under a foundation. Take photos of small hairline cracks etc. His reports are insanely thorough. 

I am a civil engineer so honestly structural does not scare me as much as the normal investor. Maybe I’m wrong but this does not make me run away immediately. I got a ballpark estimate of 5k.

Better to ask for forgiveness than permission. Consult your local real estate lawyer.

Also note seller is contributing 4K to closing costs, Agent is contributing 8k. All closing costs are covered on my end.

Im about halfway through escrow period structural damage was found during the inspection. My inspection contingency window closes in two days. What should my next steps be? FYI This is a tri plex in downtown Riverside, CA 517k purchase price via FHA 5% down +36k seller carry back. Balloon due in 5-7 years with $150/month payment. B class neighborhood Historic buildings all around. (This bld is not in historic registry to my knowledge) Built in 1929. No estimate on cost to repair damage. The floor on the second floor is not level due to the structural issue with the foundation. Please advise. I want to ask for a credit back on the carry back however this was done via promissory note. This is a house hack deal and the location is perfect. The day we went into escrow a rehabbed comp was listed on the market for 880k. I’m worried if I ask for the credit the seller will look for any reason to get out of escrow and put this back on the market. I got this off market. Let me know what you would do.