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Updated about 5 years ago on . Most recent reply

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2
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Paul Magro
  • Contractor
1
Votes |
2
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Potential investment property with illegal dumping on site

Paul Magro
  • Contractor
Posted

I am looking to purchase my first property this year as a buy and hold.  I have found a property which is RC-2 zoned with a 1950's house that I will initially use as my primary residence, an in-law apartment and a small commercial warehouse space, all on 2 acres.  I would live on the property for several years, renting out the in-law apartment and using some of the commercial space for my current landscape business. 

I've done as much due diligence as I can in front of a computer screen while I wait to view the property in person.  The house is vacant and an elderly woman a few towns away owns the property.  Local records show that her husband passed away 6 months ago and that this had likely been her primary residence at some point and then a rental. Two years ago the property was briefly listed at twice the town assessment and now it is offered up again close to the town assessment which I will take with a grain of salt as it's true value.  

There is a commercial tenant in the building currently operating as a mold, fire damage remediator.  They have been in this location for about 5 years.  I have noticed from Google maps view that there has been dumping of construction debris over the bank behind the property, which by my assumption, has been this business.  This is a common thing in Vermont on many older properties.  I understand that should I purchase this property, I would most likely be held liable should the debris remain and a storm wash it down the hill onto the neighboring property, contaminating their land.  

As the basis for this discussion, how would I go about using this illegal dump as leverage to reduce the price of the property?  What discounts can I expect on the purchase price?  If I do decide that this property is agreeable to my business plan, I would have a company come in and and excavate the area to reduce any potential legal expenses.  I am currently establishing a relationship with a real estate lawyer, whom I will use once the ball gets rolling.  I have many professional connections to local contractors and real estate agents to represent me.

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303
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Justin Polston
  • Property Manager
  • Shelbyville, IN
160
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303
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Justin Polston
  • Property Manager
  • Shelbyville, IN
Replied

@Paul Magro just keep it. There are several grants available for cleanup of stuff like that b and you might make yourself a spread GCing it

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