Do you know about - A Log Home Story
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This story has a few good lessons and observations that no doubt can be used by you to take advantage of secret opportunities that often lie in plain view for all to see, however, most citizen have not been trained or instructed on how to identify or find them.
The following true story begins with a excellent log home package, engineered, manufactured, approved and delivered for use in Alaska. A friend of mine, in 1996, built the home, and I helped him pour the foundation. This leads to our first observation in analyzing this deal: If you know the full history of a property, your belief and position on the deal can be enhanced.
You can begin to investigate history and succession of ownership through county records, tax rolls and by contacting old owners as far back as you perhaps can. Optimally you want to end your search by getting to the traditional owner and manufacturer of the property.
Now, back to our story. My friend had built this house himself and I knew for a fact that he is an attractive perfectionist. This gave me the belief of knowing that this owner-built home was a solid buildings through and through, not to mention that when the power rating, otherwise known as a "blow test," was conducted the house was so tight (no air leaks) that he had to artificially ventilate it.
At this point, I had the following information: I know who built it, the ability of construction, it's power rating and it's value based on what my friend had sold it for to the new owners. This brings us to our next phase of the investigation, the current owners.
Now we turn our attention to the current owners who are selling and the history behind them. Originally they paid 9,000, which by some strange coincidence was the asking price. I'm sure if the asking price was 0,000, it would have appraised for that but my friend made it appear economy by retention below the higher 0,000 bracket. This is known as a pricing strategy.
Our investigate on the new owners revealed that they had been relocated from New Jersey and they had one child. The neighbor, who is a home inspector and general contractor, tells me a few more details about the family, their habits and the upgrades, and improvements and modifications that have been made to the home. Once again I'm getting good signals that the home is a good one but the owners are a dinky squirrelly as to their habits and create choices.
Here is where opportunity starts knocking, folks. When you have citizen who do things that are out of the mainstream of what most citizen do, you will observation that when it comes time to sell, many buyers are turned off by the non-conformity of the home's general appearance. Let me explain.
These citizen did the following things: first, they installed a spiral staircase and painted it a fuschia purplish-pink. Yuk! This alone was said to have turned off more than one potential buyer. Also, the traditional paint had pencil and marker lines scribbled here and there, the faucets and caulking needed some repair, the glass in one of the kitchen cabinets was missing, the walls needed new paint and the yard was overgrown. Along with a few other small details, this was all cosmetic but citizen couldn't look past it.
Let's get to the real "nails in this coffin" of lost resale value. The following information deals with selecting a good real estate agent who will properly deal with your affairs, if in fact you cannot do them yourself, although you should actively participate. Here is where this agent's ineptitude will seal these relocated owners' fate. Let's set the stage: We are now at 2003; our sellers are being transferred and are attractive after five years. This is right in retention with the national average that says that citizen tend to move every five years. So in conjunction with the move, a relocation firm becomes involved. Here comes the red tape!
Our sellers chose a local real estate agent who works half days and delivers newspapers the other half (not too professional). So this agent signs our owners up and proceeds to boggle most all things from the day our sellers are transferred out. The agent does nothing to get ready the home to show well and the topper on this one was the agent had left an inflatable monstrosity of what used to be a swimming pool/fun center half-deflated with stagnant water, breeding mosquitoes at the base of the entryway stairs. What a first impression and such an easy fix!
That's just the starting because now our agent by some stroke of luck has found man willing to pay 6,000 for this eyesore, but the agent doesn't investigate anything and can't come up with the permissible documentation for the traditional well and septic approval. Therefore, the relocation firm sends out its own engineer to backtrack and he blows the deal clear out of the water because he doesn't know local protocol and has no traditional paperwork either. As a effect the potential buyers back out and the house sits empty for other six months. Meanwhile, our poor relocated owners back in New Jersey are still paying a mortgage on this while facing percolation tests for a special ,000 septic tank that isn't needed.
What we have now is a excellent stigmatized home and its value is plummeting, the costs are rising and the agent is plumb worn out with phone calls, septic tank manufacturers, engineers, state regulators, cancelled contracts and the sellers groaning constantly. You name it - this thing is seeing pretty bleak.
Enter the white knight, i.e., the educated investor. What a relief - man who knows what to do! Upon watching this carnival of events unfold for a while, I decided to step in. What finally drove me to act was a call to my office that presented an end game. What I mean by this is a military officer called to ask if I had a place that he could rent for two years. At that moment, I told him that I might and that I would get back to him.
As our friend Paul Harvey says, here is "the rest of the story!" The first thing to do was to discover the property; repairs were mostly cosmetic. Next, I went and drilled the agent for information and at this point, the agent was giving me every scrap of insider information that could legally be disclosed. I now knew that this property could be had for 7,000. Additionally, I would get a 3.5% commission and the jobber would pay the end costs! I had a solid two-year tenant lined up and willing to pay ,350.00 a month and he would pay his own utilities. An assessment had been done six months earlier on the deal that had fallen through and it pegged the value at 0,000.00.
The only thing left to do was to get the traditional documentation from the owner- manufacturer that would determine the septic issue. I called him up (as he lived less than a mile from his old log home) and he said, "Sure Dan, I have all the paperwork right here...the current agent never asked me for it!" I looked it over and here is what he had: the traditional create and construction survey, the engineer's traditional approval of well and septic, the construction department's approval and the group of environmental conservation's waiver granting permission to setup according to the plans. This thoroughly removed all obstacles to financing and the appraiser agreed. Qoute solved in less than two hours!
Now the green light was flashing, so I had the lieutenant sign a two-year lease, give me a check for one and a half month's rent upfront plus last month and a half month as a safety deposit for a total of ,050.00. I then bought the house! I painted, cleaned, trimmed and tweaked the house in 8 days it is now a gorgeous showplace on 1.77 acres worth ,000 more than I paid for it in less than one month. In addition, there is a distinct cash flow of over 0.00 a month above my mortgage and escrow payment obligation.
I would also like to add that the spiral staircase is now painted white and it stands as the most gorgeous centerpiece to a home as anything could ask for! All it needed was a vision, some labor and paint.
Let's hit the highpoints and drive home some of the lessons from this series of events.
1. Research and fetch as much history on the property as you can.
2. Pay attention to the ability of construction and types of materials used.
3. Use comparable sales, costs of construction, up-to-date sales prices, assessments, existing appraisals and take into inventory the cost to cure existing defects to begin to determine a inexpensive value.
4. Look for honestly correctable problems that turn other citizen off and literal, them.
5. Pay attention to landscaping and the ability to enhance upon its appearance.
6. Analyze the series of events that led up to the sale and the seller's current position.
7. Have a plan or end game in mind for using the property once you fetch it.
8. Always try to ask less than full asking price and be prepared to walk away if you don't get the price and terms that you feel elaborate the purchase.
9. Stay abreast of shop conditions and events and be patient; these deals will come your way when you are prepared to see them.
I hope you will get new knowledge about Rehab Centers. Where you possibly can put to use within your life. And most of all, your reaction is Rehab Centers.Read more.. A Log Home Story. View Related articles related to Rehab Centers. I Roll below. I even have counseled my friends to assist share the Facebook Twitter Like Tweet. Can you share A Log Home Story.
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