All Forum Posts by: Christopher Cannon

Sorry for the long post, but I've Never encountered this before - My partnership is in escrow on a SFR in California. It's a fantastic deal that I've spent 4 months developing a relationship with the current owner and the city attorney just to get it under contract. The short story is that the city removed the owner 2-3 years ago and the house was condemned as a health hazard. Under threat of having the property put in court receivership, the owner agreed to sell to me and the city agreed to allow me to renovate the property. Everything with inspections and DD has gone great - except the amount of personal property still left at the residence by the owner. Thats the problem - he's a hoarder. We close in 15 days and it's doubtful, despite my locating movers, that he gets his stuff out. Keep in mind all of it is junk and covered in mold - but I don't want to trash it for fear of the owner coming after me for destroying his property. At the same time - this is an amazing deal and I desperately want to close. I've prepared an addendum to the Purchase Agreement to address the personal property left after close of escrow, but to date he hasn't signed. My question(s) - what happens if we close and the owner leaves all his stuff? Do I rent a storage unit? If so for how long? How do I force him to take his property back? If anyone has encountered this problem (or squatters) - any insight is greatly appreciated.

Thank you @James Wise - BP is a valuable resource I wish I'd known about 10 years ago!

@Wes Blackwell

Thanks for the response.  I agree - in fact I already have the contractor lined up.  Perhaps I'll just extend his hourly rate and have him complete a thorough inspection.  

As for the property - it's been vacant for 6 years with multiple holes in the roof - which means potential mold remediation and structural issues with pooling water.  I just want to make sure the bones are solid.  The rest of the repairs have been thoroughly priced out and the margins are there.  I'm comfortable with what I see - it's what I don't that keeps me up at night!

And your point regarding timing is well taken - this has to be closed quickly (14 days).  But to be safe and for future deals - do you have any recommendations for pest and home?

Chris

Does anyone in the Sacramento area have any recommendations for a home inspector and a pest inspection company?  The deal I'm contemplating is somewhat unique and the inspection reports will be crucial - even more so than a normal purchase.  The property has been condemned and vacant for the past 6 years, so I'm looking for a thorough home inspector that will look for any hidden land mines beyond what I can see.  

Thank you in advance for the time and consideration of this post.  @Wes Blackwell Perhaps you have some thoughts?  

Thank you @Dave Foster for the quick response.  That's what I figured, but I wanted to check since peer street does have a secured interest in the property.  Thanks again.

@Ken Wang Do you or anyone else know whether peer street would constitute a 'like kind' investment to complete a 1031 exchange?  Thank you