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Updated almost 7 years ago on . Most recent reply
Abandoned apartment complex, owner/LLC dead - how can I buy
So I found this 100+ unit apartment complex that's been abandoned for at least 4 years. County Records gave my the name of the LLC and that there's $70K past due in property taxes. When I researched the LLC I discovered that it no longer exists and the owner/individual attached to the LLC died a couple years ago.
The buildings bones on the structures on the property appear to be in pretty good condition although there are no doors or windows and every unit would need to be completely redone inside; some including the drywall. It appears that electrical and plumbing are on the newer side, but I cannot say for the entire facility as I haven't gone through all 20+ buildings. There's obviously a lot of work (read money) that would need to be done to get this facility back up and running but the fact that it is sitting there with existing structures just needing the interior completed makes me believe that there's a great opportunity there.
From my research, when it was open most, if not all, was part of Section 8. Management was not qualified to run the facility and crime moved in, causing it to appear on City Council agendas often enough, where policies and ultimatums were issued. I attempted to talk to the city about this property, about renovating it, and was asked if it would be open for all renters. Instead of saying yes I said something to the effect that it was my understanding that it use to be used primarily for Section 8 and that due to the location and that the city is in need of more Section 8 housing I would probably return it to that status. All discussions came to an immediate halt and I was basically told that unless I owned the property they wouldn't be able to answer any questions. (Just going out on a limb here, but I think there's still a bad after taste in their mouth from how poorly the property was managed and all the s#!+ the city had to go through before!)
So the obvious question are
1. How do I find out what bank/lender is carrying the loan to the property of the now defunct LLC?
2. IF I'm able to find that out, how to approach the institution and show them that the property that was in livable condition when they made the loan is now in a deteriorated and inhabitable state where the amount of work needed to get it back to livable standards is significant, hence I'll take the property off your hands but it's going to be well below market value and you are going to be losing a lot of money. How do you say that politely and get a deal?
3. How do I deal with the city now that the proverbial cat is out of the bag?
4. What else should I be doing/asking? (besides asking if i am crazy!)
Sorry so long but I wanted to include as much pertinent info as possible. Thanks in advance for any and all suggestions.
What I didn't tell you & why:
This is in a city in the southern states. At this time I am not prepared to disclose the location as I've lost deals to claim jumpers in disguise as the 'helpful mentor' that were more knowledgeable and better positioned than me. I hope you understand my hesitancy to share on the open forum. If, down the road, I'm unable to pull it off and anyone's interested I may put it out there.
Most Popular Reply
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Craig,
sorry to hear of your misfortunes with others that helped you. yeah i'm thinking mentioning to the town that you will probably put back section 8 tenants in there was not a good idea, hope it does not cause problems with inspections and stuff if you buy the place. can you go down to the states public records and find out if the property ended up in an estate and who it went to ? it seems you know who the lender is, with that much owed they may have the right to sell it to you. one thing you can maybe do too, which is a risk, is pay the dept, have the lender note that you payed the dept, so either whoever owns it owes you ( which you can charge interest on ) or eventually it will come to you. I am not a lawyer and these are just my thoughts, i have never done that, but you may want to speak to a lawyer and see if something like that is doable.