Cleveland Code Voilation Property on the Condemnation List

[Sidney Watkins]

Hey Guys!

Need your Help!

So I found a Duplex property that is a steal of a deal at 5K. I could potentially make 10K to 15K assignment on this deal if all goes good. So I was doing my due dilligence on the property. It's located in CLEVELAND, OH 44120 AREA. I am living in Columbus, OH so the property looks beat up and covered with moss but its a classic rehab.

But there is a problem.....

It's has an "Open Violation of Condemnation" and about 19 different violation to fix. Now I am to figure out how to structure the deal as a wholesale deal. I never learned how to wholesale code violations, but I would like to figure it out so that it would go smoothly (which is like a unicorn in the industry haha).

What I have done so far:-

I found out about the Code Violations about the sellers property before even speaking with them about it.

Found out by the city that it was on the Condemnation List.

And saw that the owner didnt pay taxes since the Violations were recorded 2 years ago so there could be a potential lien on the property as well which is minor.

Overall I dont know what I need to do on my side of the wholesale transaction. I know I have to give my buyer full disclosure on all the encombrances of the property to the best of my knowledge.

Is my job done? And could I just open escrow and find a cash buyer to wholesale it to?

If anyone in the CLEVELAND AREA that could give me some insight, I would be very grateful.

[Dan Sarao]

@Sidney Watkins - $5k at face value seems like it is a good deal BUT you have to do the economics on it. What are the SOW and cost to fix the violations, what is the delinquent tax amount and what is the ARV on the property? The economics have to make sense first thing and more important than anything else. No one is going to buy a contract that puts them in the negative.