Houses with Foundation Issues and/or Wet Basements

[Simona Potocar]

So here in Cleveland, OH there is a many a bank owned home which - in addition to be a complete gut job - also have wet basements and/or cracks in the foundation when looking at the basement walls.

When I look at homes with those sorts of issues, I can't help but wonder who buys them?  Are they nearly impossible to wholesale?

A real life example is a home I visited yesterday, which needs a complete gut job - kitchen needs new everything, house needs painted (interior and exterior), floors need done in almost every room. Plus the basement has cracks in the foundation and a pool of water on one wall.

I think I could possibly get this house for $25-35K and its ARV is approximately $90-$100.

Thoughts?

[Andy Hudgins]

@Simona Potocar Do some digging and find a small, "mom & pop" foundation/waterproofing company: avoid the national franchise company that has a million dollar marketing budget as their margins are WIDE.  Find the guy who hardly ever advertises with a long list of references, who all the contractors call on, who has never thought about scaling his business. This is where the real value is as it relates to your buyers' margins. 

Just so you know, the experienced foundation guys find this stuff simple while the uninitiated think its a complete mystery.

Plus, search foundation/waterproofing threads on this site. Should turn up loads of info.