Now of course there is the typical appraisal that the borrower has to pay and sometimes depending on the collateral and environmental fee.

If you have a title insurance policy on the property, read it closely.On most title policies, something like that may be considered a covered risk.On one of my policies, the exact text that may cover this risk reads:The violation or enforcement of any law, ordinance, permit, or governmental regulation, including the relating to building and zoning, restricting , regulation, prohibiting, or relating to:1. the occupancy, use, or emjoyment of the land2. the character, dimensions, or location of any improvement erected on the land ( This is the one you would be going for)3. the subdivision of land4. environmental protection.I am very familiar of a similar case, where a claim was filed with the title insurer, and they paid the claim to get it cured, less a deductible of 1% of the insured value.In this case, the building inspector first came out and issued a violation, and that violation was presented along with the title insurance claim.

Yeah, what I like is the scrappers took all the copper - mostly water pipes so the environmentals are in need of heavy repair to bring it back to it's previous commercial usage....however with changing it to a storage facility I see a far less initial cost to bring it together.Security can be done pretty easily since it was previously set up to secure the contents being shipped in and out of the facility (loading docs and other features lead me to believe this was initially set up for assembly).

Now, if they truly couldn't sell it otherwise that might be one thing, but scenarios where they're just underwater a need a safety line; well, I think it would be tenuous for my consciousness.

Having building inspectors, zoning boards, health departments, environmental regulators and other officials to satisfy can be difficult and ultimately make any owner decide to dump a property.

My only point is not to make a conscious decision to exclude a super majority of your future clients by only looking for that tiny sliver that use cash.

If that's the case, you could have environmental issues also, depending on if the meth lab was in the basement that's still left.

Locally, you have to hire an engineering company to do the surveys, elevations, environmental reports.Sit down with them for a talk about what is involved.In my local, a 3 way split is pretty easy (cost, about $5,000).

At a 5 cap you would have 540,000 sales price.You said 75k a unit is what you believe they are trading at. 75k X 6 = 450,000450,000 is a 6 cap rate.Let's say you spend for everything roof, parking lot, environmental, legal, plumbing, electrical, HVAC, unit build out and finishing averages at 30,000 a unit.You buy at 20k and put in 180,000 for a total of 200,000.

He overcame ENORMOUS obstacles... leaving him penniless, homeless, taking showers at the community park..Only to as he told me "In a fit of creative consciousness..