Emergency Raze & Remove Notice :(

[Azita S.]

Earlier this year, I purchased 5 duplexes in Milwaukee metro in a package deal.   The buildings were inexpensive $96K for the package and all together they needed less than $20,000 in repairs. 

I took a $100K HELOC to purchase the package.

I procrastinated in getting insurance since it was expensive and I thought to myself, I'll eventually get insurance once they are occupied and I have  cash flow.

Today, I got a call from the management company and a city inspector; there was major fire in one of the buildings that was already occupied and the city has issued an emergency notice to raze and remove in 2 days. 

I spoke with the inspector and was told the fire damage is extensive and the building is unstable and considered a health and safety hazard to public.  The city will demolish the building and the cost will be charged as a tax lien against the property if it's not done by Saturday 12 PM!  He estimated the cost between $10K-$20K.

I'm devastated with the loss and relieved that no one was hurt and very grateful to all the firefighters who put the fire out. 

I have a long day ahead of me.  The property management has to locate the tenants who were displaced,  to recover any personal belongings before the city demolishes the building.  Then I have to figure out what to do with the tax lien on the property???? which will be just a vacant lot in 2 days.  

I have great credit and can't let a tax lien ruin it :((

I need your advice on how to handle this situation.  I don't have $20K sitting around to pay for the demolition of this building. 

[Arary McGowan]

Hi Azita,

Sorry to hear about this unfortunate situation. I was in communication about a year ago with a lady in California who bought in Milwaukee and she had the same issue. She was able to get an extension of a couple of day to arrange her our demolition contractor. I believe it was between $5-7k. There was a hold up on the demo also as the gas company had to make sure the gas was shut. 

Give the city a call to get an extension. They can be a pain, but they would have to understand your situation being out of state. 

Good luck with this!