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Updated over 8 years ago on . Most recent reply

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Leonard L.
  • Investor
  • Newport Beach, CA
102
Votes |
129
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Dealing with Solar and Solar Lien

Leonard L.
  • Investor
  • Newport Beach, CA
Posted

I am looking at potential fix/flip, but it has recently installed roof and solar.  Problem is that in Riverside County, this is a "HERO" program where the government fronts the money but then imposes $30k lien on your house, collected through tax bill.  A few years ago people were assuming, but now virtually all buyers in my market write offers that require the seller to pay off the lien.   Their thinking is that this is a financial lien, and sellers must clear title of financial liens.  So, solar screws the house value by $30k, which is a windfall to buyers who get new solar, no electricity bill, and pay nothing for it.  So, what do I do?  Since buyers are paying effectively ZERO for the solar amenity, do I remove the panels and reuse somewhere else?  Buy and rent until market shifts backs to buyers assuming these liens again?  Try and negotiate some sort of power purchase agreement with the buyer where I do pay off the solar lien, but they pay me $200 a month for electricity for next 10 years?  Creative ideas needed.

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

Treat it just like any other "expense", and also like any other desirable "feature"......just like if it needed a $30k roof, it decreases your purchase price by that much....assuming buyers don't see and add any value for these systems when offering.  A knowledgable local agent will know, or can find out, if these systems add any value to an appraisal.

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