Can I make this Foundation issue work?

Question

I reached out to a nice lady to inquiry about her property for sell the other day.  It is listed on the MLS but has a unique description of the property.  In the property explanation it mentions  that the property will need to be a cash offer as it will not pass a banks requirements for financing.

So I inquired about her situation as I normally do trying to establish some rapport before getting into detail about the unique situation that requires this to be a cash offer.  She stated that when they decided to sell the property as they are out growing it and need a bigger place they had it inspected and were informed that the foundation needs extensive repair.  This is an older home early 1900's.

They got a quote and she informed me that the quote was around $50,000!  She is selling the house for $150,000 and owes $139,000 on the home.  Obviously, there doesn't appear to be much one could do with this right?  However, I just got through listening Nathan Brooks (@Nathan Brooks) first Podcast 87 and he said he helped a person in a similar situation without having to take possession of the home?  I appreciate any and all recommendations as to how I might help this woman whether it means me ultimately eventually purchasing the property or steering her in a direction that will help her out of this situation.  If you have had a deal similar to this situation would you be at liberty to share your deal/structure to help the learning for all?  Thanks

Nathan Brooks · Answer

@Tony Wooldridge Thanks so much for all your kind words... and so proud of you for keeping after it and getting your first deal locked up.  Business is great here in KC and we are enjoying growing our team and dialing in our operations.

AND ... the mountain man beard is now the mini summer man beard, but I'll be ready for the fall/winter season of it when the time comes :)  Go get it!

Tony Wooldridge · Answer

@Nathan Brooks, no problem.  Thanks for taking the time to stop by.  I kinda figured the moment that I finished talking with this lady that there was absolutely nothing I could do for her.  However, as we have both stated it is such an awesome feeling when you can find a way to help someone out that is in a jam.  Due to the complexity of this situation, I didn't even entertain the thought of trying to investigate what I could do to help.  However, I am happy to announce after multiple failed offers and months of looking at on market / off market deals, I am pretty confident that I will get an offer that I made on a house accepted today!  It will be my first and I am so excited! But we shall see.  Anyway, thanks so much for stopping in to share, the timing couldn't have been any better as I just listened to your 2nd Podcast 159 yesterday while out drive for dollars!  Thanks again Nathan and here is to wishing you a successful 2017 in your REI ventures!  P.S. how is the mountain man beard treating you these days?  LOL

Nathan Brooks · Answer

@Tony Wooldridge sorry I missed this when you posted it ... from what it sounds like, obviously no deal.  I do love helping people, and yes our team does 100 flips a year, but we also can't do deals that don't make sense (or money).

To me, first ... it sounds like someone trying to take advantage on the foundation repair.  It also sounds like a perfect candidate for a short sale, with the foundation repair bid in the supplements on the MLS.  Sometimes "doing the right thing" doesn't pay anything... yet.  But she will tell the story of how you helped her many times over, and it will come back.

Best of luck!

Tony Wooldridge · Answer

@Sam Cain appreciate you stopping in to share your expertise.  I wish you were in my area.  It seems like I cannot find a RELIABLE concrete contractor here.  May be you can answer as to why contractors just will not call you back?  It absolutely blows my mind that (some) contractors have ZERO idea of what customer service is!  Sorry for the rant, back to point, I have decided against trying to take on this project.  Once again thanks for your input!

Tony Wooldridge · Answer

@Paul Hitchings, Yeah, exactly.  So how do guys like @Nathan Brooks make this stuff work?  Don't get me wrong I am in no way comparing myself to him as he is an REI expert and I am haven't even done my first deal yet.  Maybe this deal is way above a newbie skill level, which I suspect is probably the case.  However, I buy into the whole how can RE investors make a better name for the community as a whole.  How can I help homeowners out of their desperate situations?

Paul Hitchings · Answer

So seller has no equity and home needs $10K+ in foundation work? Where is the profit?

Can I make this Foundation issue work?

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