Katrina Damaged Properties
My partner and I are interested in rehabbing some Katrina damaged properties. Anyone out there doing this? I would be interested in hearing about the pros and cons. Problems with finding materials, sub contractors, goverment regs, etc.
Thanks in advance for the information.
We were thinking more of buying a SFR and rehabbing and selling. Anyone doing this that would want to share their experiences?
thanks
There was a press release yesterday from the IRS that Katrina victims have an extra year to declare their loss.
May be there are a ton of opportunities down there.
I just learned about "go zones" tax credits (?) for investing in the Katrina affected area.
I spoke with someone yesterday who went to Mississippi last year and worked on a couple houses. He said people were under insured or uninsured and were walking away from the damaged properties. I am not so much interested in the GO Zone tax credits as finding some properties I can get cheap and do a good rehab and resell.
Thanks for your comments
Hi,
I am a contractor here in New Orleans, It is true that most of the good contracts are going to a select few. However, there are good invest opptys here. If you want a sub-cantractor i can help. I need the work, otherwise I will have to leave soon, as well!
TempleConst Inc.
**Please See My Profile**
Scott,
The market in my area of the state has died. I have and just did a short contract (2 years) with a balloon. It works well if you really check them out. Remember Minnesota has very tight laws dealing with Contract for Deed. If they quit paying it is a foreclosure situation and could take you 60+ days to get the property back. You could look at lease option as well which is also very good but may conflict with local laws. May have to have rental certification and inspection.
I have never used an agent with any of my contract for deeds. I just sold one yesterday it was on the market 3 days but I did it on a short contract (2 years). I got the down plus $100 a month positive cashflow an when the refi I will get 40,000+. My total cash invested is less than $1500 so not bad.
I did have one I wanted to cash out . It was on the market for 6 month. Could not take it anymore did contract and gone in 1 hour. But again it is not for the faint of heart. It can be stressful.
Hope this helps.
J
Thanks for the info, regarding the contract for deed possibility, I have heard it said by a wholesaler who sells on contract for deed (when neccesary), that she often gets the buyer to execute a quit claim deed back to her, which is escrowed in the even they stop payments.
Anyone have experience with this? Does the buyer have the right to essentially waive his right to redemption in the event of foreclosure?
Thanks again,
Scott[ Edited by srj1972 on Date 08/19/2007 ]
The laws in Minnesota state that it must go through the full foreclosure process unless the buyer will waive thier right. You must give them 60 days and then figure another 30 to get them out. Minnesota is a very liberal state when it comes to propecting their rights. The law was wrote in the Depression to protect farmers and home owners from banks and such. It has not been changed since but the world has changed. Just get a good lawyer and check your buyer out. It may not stop you from getting burned but it may only be a first degree burn not a third degree.
Here is a link to the law
http://ros.leg.mn/bin/getpub.php?pubtype=STAT_CHAP_SEC&year=2005§ion=559.21&keyword_type=all&keyword=contract+for+deed
Good luck,
J
Thanks for the reply. The problem comes cause I am currently out of the country and will be for the next 3 to 4 months and that is too long to be holdin on and making payments. So Id rather let somebody else make the profit and deal with the day to day routine of tryin to sell it.
At least get someone in there to do the tile. It will actually save you time selling it well as bringing in more than it will cost you. Dirty garage and old intercom are minor issues and can be ignored.
Chris