All Forum Posts by: Allen Grant

I am currently looking into a freddie mac foreclosure.  The home was built in 1990 and is in good condition except for the fact the home had a water leak and now has an extensive mold issue.  The trim along the floor in most of the rooms has mold as well as extensively on the kitchen cupboards.  The Realtor advised that they were getting bids on cleaning up the mold.  I am aware of the repair work that will be needed, but I have never had mold involved in a transaction.  Are there any other parts of the purchase/sale that will be complicated by the fact the home had a mold problem?  This is a lake home in a desirable location, and I believe it would sell well as a fix and flip.  Can anyone offer advise on the mold issue?  Also, I would be utilizing a hard money lender.  Thanks

Thanks everyone for the input!

It is on a crawl space. Access is on the outside of home and is only about two feet off of ground. Cannot see back in to where problem likely is. George, have you had to repair this type of problem before? If so, what was the approximate cost?

The HUD report does not even mention the floor.

Ya, its not to bad but it is noticeable. Just wanted to see if anyone had any "nightmare" stories about a bad floor lol. The good thing is, it seems sturdy, does not "bounce" when you jump on it. I plan on allocating around 12k for the rehab. Paint, flooring, furnace/water heater, bathroom. It's in a pretty small town and contracted labor is affordable. Acording to numbers that I have ran, I stand to make around 14K. But again, I'm a rookie so any profit would be great :). Just exited to get a first deal under my belt.

I am trying to crunch numbers on my first deal. A fix and flip using a hard money lender. Its a HUD home for 25K. Its a 1300 square foot 2 story built in 1930. When pulling comps, I am estimating the ARV around 60-70K. The home already has newer vinyl siding, newer windows, and a new roof. It has a nice attached two car garage. My biggest holdbacks are that the entire middle of the house (floor) is sagging. Not a lot, but its noticeable. I will also have to replace the furnace/water heater. It also only has one bath that will need completely remodeled. The loan will cost me 3,200 for a six month hold (if I happen to be stuck with it that long). Any input is greatly appreciated as again, this is will be my first deal. Thanks in advance!

I have contacted my local title company to inquire about contract assignments. Both times I called they said they would get back with me and never never do. I have never done a deal before, i am still researching. Can i use an out of town company and just email documents, or would this greatly complicate things?

Thanks for the input, really appreciated.

The home is no longer listed with a Realtor, so that is not an issue. Since this is my first deal, I am more interested in getting through the deal successfully than making a huge profit. As long as I make a small profit and create a win,win,win, I will be happy. The biggest concern I have is the paperwork. I have found state specific real estate forms at Office Max. My biggest question is, what is involved after the agreements are signed? Do I just go the my local title office and they will handle the rest? I dont want to sound dumb. I have been an insurance/car salesman for years, so I am not concerned about the verbage of the sale. However, I know nothing about real estate regulations/laws.

I am considering a first deal. A house on a small lake with beach frontage. The house is in good condition with comps' @ 100K. The seller has land contracted the home for two years in the past. The owners have moved about 30 miles away and are ready to sell. They have listed the home for a year with a Realtor (@86K) with no luck. They are looking at auctioning the home just to be done with it. I am considering proposing a lease with 90K option. Again, this would be my first deal. Any thoughts or suggestions are appreciated.