All Forum Posts by: Emmanuel Ola

I recently purchased a property and discovered a series of issues regarding municipal code violations that the seller did not disclose. Here’s a detailed account of the situation:

The owner received the first notice (7-Day Notice to Abate) from the city for municipal code violations on May 28, 2024. This notice stated that a re-inspection would be carried out 12 days from the mailing date and advised contacting the code enforcement officer prior to the inspection date to discuss informal resolution. The seller apparently ignored this notice.

Twelve days later, the city conducted the re-inspection, and the seller was charged $151 in re-inspection fees. On June 28, a second notice to abate public nuisance and an order to show cause was issued, requiring the seller to appear before a hearing officer on July 16, 2024.

On July 16, when no one showed up, another notice was issued for timely abatement of the nuisance, giving 30 days, until August 15, to repair the heat, fix the plumbing, obtain a fire rehab permit, and receive a final inspection.

The property was listed for sale on June 10, 2024, nine days after the seller received the first notice. While still in escrow, the seller received the second notice on June 28 but did not inform me about any of these notices in the disclosure. The disclosures were signed by both myself and the seller on June 29, one day after the seller received the second notice. Assuming the seller did not receive the second notice on time before signing the disclosure, why did the seller or the seller's agent intentionally hide the notice in the disclosure and fail to inform me?

As a result of this oversight, the city has now charged a total of $2,084 in re-inspection and administrative fees. Is the seller or the seller's agent guilty of not disclosing these notices? Can I sue them or report the agent to the ethics board and have them pay the total fees incurred due to their insincerity? I would appreciate any suggestions as I have 15 days to resolve this.

The violated codes are described below:

Violation of City's Municipal Code. Specific violations are as at 5/23/24:

Violation 1: Harzardous/Insanitary PREM :
Narrative/ Ordinance Description: Remove all burned an unsanitary material on the property. Accumulation of weeds, vegetation, junk, dead organic matter,
debris, garbage, offal, rat harborages, stagnant water, combustible, materials, and similar materials or conditions on a premises constitutes fire, health or safety
hazards.

Violation 2: Enter/Occupy Posted STRU
Narrative/ Ordinance Description: No person shall enter or occupy the residence due to fire damage and hazardous conditions.

Violation 3: Heating facilities
Narrative/ Ordinance Description: No heating due to no power PG&E pulled the power. Lack of adequate heating facilities.

Violation 4: Hazardous Plumbing
Narrative/ Ordinance Description: Please repair and replace exposed piping from the property water is currently turned off. Plumbing was installed in violation of code
requirements in effect at the time of installation....

Violation 5: Permits
Narrative: Please obtain the following building permits.

1. Dwelling suffered fire damage throughout the interior and exterior affecting framing members, electrical, drywall, and insulation. Rehab permit required
2. Record check has revealed no permit exist for front porch and rear patio structure, please submit plans and obtain a building permit or remove.
3. Electrical repair and permit must be done by a C-10 electrical contractor.

Violation 6: Modification W/O Permits
Narrative: Please obtain permit for a fire rehab permit. Please obtain permit for the electrical. C-10 electrician required

INSPECTIONS: Once all required permits are obtained, please schedule inspections with the city building department.

Thanks so much for responding. Will tell my agent that I will be switching to conventional.

Thanks so much for responding. Will tell my agent that I will be switching to conventional. 

I found a good deal that I really like for $160K, which has excellent cash flow potential. Initially, I was planning for a quick sale and contacted my private money lender for a hard money loan. My plan was to put down 35% while she would cover the remaining 65%.

However, the seller has requested to be in escrow for 45-60 days so that he can complete a 1031 exchange and use the proceeds to buy another house within that period. Given this new information, I'm considering whether it might make more sense to opt for a conventional loan instead of a hard money loan, due to the lower interest rates associated with conventional loans. Alternatively, I could stick with the hard money loan and refinance into a conventional loan later.

I would appreciate any suggestions or advice on this decision.

Hello All,

I just secured a 0.4-acre lot with a burnt house on it in the Bakersfield, CA area. The burnt house measures roughly 550 sqft, with 2 bedrooms and 1 bathroom. The burnt house will be demolished, and the foundation will be used to reconstruct a new 2-bedroom, 1-bathroom home.

I have a builder I have worked with on other smaller jobs, like concrete work on my house. I have also referred him to my friends and he did a great job with their concrete as well. I took him to the lot, and he said he would be able to rebuild for roughly $45k after I negotiated down from $65k. Given that many people have said the average price to build in California is $200 and above per square foot, I became worried.

Do you think building a 2-bedroom, 1-bathroom home measuring 550 sqft is feasible at this cost? If I go with this builder, what necessary actions should I take to ensure our contract is binding in case he defaults? I will appreciate all suggestions.

Thank you.

This is something I'm actually thinking of right now. Mine will be in Bakersfield though. 

Hello, 

Fellow Bakersfield, RE investor. I'm new to the RE investment here in Bakersfield and would like to know if investing in the Oleander area is profitable. I'm looking to build a MFH in the area and would like to know if anyone has done something similar. Happy to connect. 

 Thanks for your input. Is it okay to chat with you?

 Thanks. I will do just that and get back.