All Forum Posts by: Jonathan Carpenter

Typically what you'll see for anything that relates to mold or water damage, is that any contractor that gets called out has to take liability for the issue from that point forward. This will translate to them charging what may seem like a lot of money for a small problem, as the chances of having to deal with a problem for an extended period of time are real from that point on.

That being said, if the other landlord is being unreasonable and requires a contractor to do the work, you may not really have a work-around. You may be able to propose having a handyman do the work and then have a mold inspector come verify the problem is dealt with? May save you a little money. Just an idea.

Quote from @Chris Seveney:

@Jonathan Carpenter

Was the cosa recorded or was it within building department? I'm not sure where the engineers found it actually.

For example we bought a house once that was noted we could not increase size of septic because it was within 1000’ of public water system and essentially that was my bad as not looking into further future development - but that was not a title company issue - as title was clear and that was not a deed restriction nor an easement

Quote from @Caroline Gerardo:

"They claim that since there had never been any enforcement of the restrictions, there's no reason anyone should have found it." The title company put that in writing?  If it was not on the preliminary or final title report you have a claim. If it shows on the report and you ignored and closed you have no claim.

Soil sounds like is the concern as is porous. So your design plan needs to gently address drainage.

Leases rarely a public record. Get a commercial agent not a residential one to tell you what your warehouse space market rents. 

What city ?

The commercial agent is a great idea. I'll call around. We're in Whitefish, Montana

Quote from @Caroline Gerardo:

Without knowing what the environmental risk they were addressing in 1970 it's hard to help you. Usually it's because there is lake water or drinking water or groundwater degraded that can be contaminated by septic or your project. From what the engineering firm told me they didn't consider my lot as something that would get developed? Not much else on that end. The engineering firm has said they can get the restrictions lifted.

A title company settles a claim in 30 days, usually... you have borrower paid insurance? What was the reason title company denied? They claim that since there had never been ant enforcement of the restrictions, there's no reason anyone should have found it.

You need a new attorney. He waits months to "get back to you" and he's afraid to soil his relationship with the county????? Doesn't sound like any bulldog attorney I know. I do feel comfortable sitting in the same room as him so that should've been a dead giveaway.

Developing takes schmoozing and baby kissing. Go to the county planning desk, bring snacks every time for the whole office, home made ones. What does the county want from an engineering report, who do they like? Do not promise anything or tell them much, you are fact finding. What type of soil do you have there? Soil is old lake and riverbed, lots of loam and sand. I haven't even talked to the county personally at this point. Probably should do that.

How much need is there for contractor shops and what does that mean? Lots of contractors only need a garage or a storage space with wide driveway that has security ~ is that what you are thinking? Maybe don't tell planning contractor shops, sewing craft shops... to soften the sound of the use up, as sounds like less likely to dump something in the drains or kick up a party. Our realtor worked up the lease rates in the area and in the past year there have only been 3 signed that are of public record at all. Every realtor I know in the area tells me they're constantly being asked where someone can rent warehouse space, which is basically the plan at this point.

Hey there Bigger Pockets fam,

I've been working on a deal to build out some contractor shops in our area. Purchased the property in 2021 on an awesome owner finance note with the intention of starting the build quickly thereafter.

We had, what I thought was, a great quote in hand to throw up a pole barn and start our journey towards financial freedom with a grand slam of an investment. Unfortunately reality quickly set in when we contracted an engineering firm to start the septic and wastewater plan. 

Our property had a COSA in place from the 1970's stating we could not improve the property at all. This is a little detail our title company missed...

We contracted a lawyer after incurring close to $60k in engineering fees (they did find a way to lift the restrictions through the DEQ), to see if we could make a claim agains the title insurance. After a few months, he got back to us and said there was nothing we could do. He said we did have standing against the county for having approved an illegal septic on the property in 2004, but that he would not file that suit as he has a good working relationship with them.

SO: What would you all do? Pursue legal action against the county and risk future cooperation from them? Take it on the chin and eat the 3 years of holding costs and increase in construction costs? Rent the property as is and not improve, cash flowing approximately $1,800/month?

OR: Go for broke and secure the bag baby? $2.5 million acquisition and construction costs to cash flow a little over $5k/month

Lets go hive mind!

Quote from @Charlie Moore:

Quote from @Jonathan Carpenter:

Hey there, this is my first Bigger Pockets post so yay!?

We're working with a mortgage broker local to us and he has put us in contact with Lendbase as well. We are not currently under any sort of contract and we just found this thread through a google search on Lendbase.

We are currently working on a construction loan to develop some residential lots, assumed the Mortgage Broker would be on the up and up... had some sales-ey call with a guy out of Utah. 

I suppose the main question is, does this company actually come through. We're looking at a rather large loan and I feel like we could go down a different road if this place is not legit.

Thanks.

 Did you end up using them - talking to them right now - and a little nervous to pay the engagement fee. Thanks

We did not move forward with them. Personally I was not stoked on the engagement fee and on that particular project, the listing agent (who promised to notify us if anyone else was kicking the tires on the lots) sold one of them and the project didn't make sense at the new number or units.

Hey there Bertho,

As far as asbestos concerns, the best way to deal with this would be to hire a professional and licensed asbestos inspector. They can sample the materials throughout the duplex and let you know what, if any, items in the home contain asbestos. This allows you to know what you're tearing into any time you do a renovation.

Wiring is a cost that is going to be a cost no matter what. Old wiring ends up being a problem down the road that incurs costs just to maintain. If you do end up moving forward, it makes sense to just face that issue head on and it will save you a ton of money and headache later on in the ownership journey.

I own a property, with small acreage, very near an airport.

The airpot is in the process of expanding and has purchased up a few vacant lots near us, also with acreage.

In anyone's experience, do airports generally expand outward and drive down property values over decades? Our area is pretty unique as we're a more rural setting than large airports, but if this is something I need to worry about over the long term, knowing now is better.

Thanks!

Wow. Did anyone show to the one on the 29th?

Quote from @Anand Rangaswamy:

Quote from @Jonathan Carpenter:

Hey there, this is my first Bigger Pockets post so yay!?

We're working with a mortgage broker local to us and he has put us in contact with Lendbase as well. We are not currently under any sort of contract and we just found this thread through a google search on Lendbase.

We are currently working on a construction loan to develop some residential lots, assumed the Mortgage Broker would be on the up and up... had some sales-ey call with a guy out of Utah. 

I suppose the main question is, does this company actually come through. We're looking at a rather large loan and I feel like we could go down a different road if this place is not legit.

Thanks.

 Jonathan,

Did you go through with Lendbase? Would love to hear your experience.

We did not end up finalizing the deal. Listing agent dropped the ball. Sounds weird, but true. Lol