FREE HOUSE

Bob,

I'm with you on running the other way. There are always taxes to be paid and how long will you have to keep the house before you can get rid of it? If you can get rid of it, how much will it take to make it livable? If the other houses in the area are in the same condition you may own this thing forever. I would run, it's only a good deal if you can get rid of it.

Live Abundantly!

I would do like an Option Contract on it for like 30-45 days , for $1.00 then market it during that time for like $1000 dollars , someone may buy it for the land it sits on.Just a thought.

Curtis Fillers
(Charlotte,NC)

Hi Bob,

I would do some research first,are there any leins? Is her name the only one on the free and clear title? Any family disputes? Is the city or county requireing it meet certain "Curb Appeal"specifications? Knowing these things will ensure you aren't immediately taking on any financial obligations,other than taxes.
But i'm optimistic,even if the building needs torn down you still have some land equity,assuming the lot is of a good size. But then again,being around a lot of other abandoned props and in a bad area you might have a hard time giving it away yourself.It could take years to get rid of it,but i have also heard of whole streets and areas being bought by commercial developers that just want the land,so if you had a little peice of it could turn into a great deal down the road.
Just a few things to think about!

Good luck.

Let me know how it turns out.

Location, location, location dont forget. Very important, there's nothing for free.

Hi Due your due diligence on it and then make your final call, Jim

Bob, get it under contract for $20/$25 with all the proper contingency language (Your_Name and/or Assigns"; "Subject to Partner's Approval"; "Buyer has right to terminate if inspection be found unacceptable to Buyer"; etc.) that will let you out of the contract in about 30 days. Then market the property to your Buyers and see what happens. The worst that can happen is that you will be out of $25. Just my two cents.

Hello all,
Thanks for the quick replies. Rather leaning towards checking out the details, getting it under contract if all is in order and trying to find someone that deals with inner city junkers. Still it is such a bad area that I hesitate to even check it out.
All of your replies have got my partner and I saying, "See, I told you...do what he said." The debate continues...Thanks again to one and all, will keep you posted on which way it goes.
Bob

Bob, remember to protect yourself with contingencies; but also remember that, "one man's trash could be another's gold."

I wud take any house in any area if it ment i could profit from it. This is a No Brainer. Do your HOMEWORK on it & run the numbers. You could easyly flip the property for at least $5000. Sumthing cud be done with the home or the land. Just market it to the world the same way you got it. "Bandit Signs"! Give it a shot & see where is goes. She sounds very, very motivated...lol...

This will be fun to hear how it ends, let us know...

Good Luck Bob

...

Just because it's free doesn't mean you want be stuck with satisfying the city and paying taxes. I am guessing she is tired of the payments for taxes and such.

I agree, check the encumbrances on the house. I would ask my Title Co to run a prelim report that will uncover most of the liens. If they don't amount to much, I would take it for $1. I have done many deals where the cabinets, copper, water heaters have all been stripped out! And many of my buyers are jumping on them.
Yes, it is bad that the sub division is deteriorated, but if it's not "crackville", chances are you'll see investors coming in revitalizing the area. Do some mor homework and take it if you can and advertise like others here said.

Let us know!

-Tina

You say there are other properties surrounding this one house, have you looked into them as well? Who knows.. YOU could play a part in revitalizing the area yourself. Will be interested to see what decision you make on this. Good Luck!

~Kristen

Hello all,
Actually, it is "Crackville", may even be beyond "Crackville" since the neighborhood is literally crumbling. We looked up and down the street with Google Earth and there is garbage oozing out of the doors and windows of the crumbling houses. I would be inclined to post a gaurd in the car if I go into the house and would be sending the owner in there in front of me.
I assume with a nice tight contract containing plenty of escapes I won't be concerned with any city entanglments but I seriously don't want to take anyone there for a walk through. Still, there are investors that buy inner city.
Bob

Hello Bob,
This sounds like a rehabbers dream. Not sure if your partner see what I see. This could be the start of something wonderful for you. Have you thought about purchasing these properties as a bulk deal and flipping them to rehabbers or applying for government funds to put them back together and renting them out to section 8 tenants with the option to purchase? There are programs available where the government will give you grants to help re-establish neighborhoods and sell these properties to tenants looking to buy. You may want to check that out before you run, this could be the start of something wonderful for you and your partner if that is where your heart is. Please do your homework and make sure the city haven't considered condemning the area. You never now what impact you may have on this neighborhood if all checks out. Keep in mind bad areas can be turned into good ones if enough good people are introduced to them. I speak from experience. I once was in the market to purchase an apartment complex which had a lot of problems and I wanted to run but after speaking with the tenants that lived in the complex, I found out they wanted a change and was willing to assist in helping change the building as well as change what was going on around the building if not the neighborhood. It consisted of mostly single mothers raising children that wanted a safe environment for their families and was willing to do whatever it took to make that happen. So because it's not such a good neighborhood now don't mean it has to stay that way. You and partner could be on to something here, so don't chalk it up as a no go yet. My advise unless it's crack alley or gangs village I would take a look, if you're still unsure RUN!!! Happy investing! Keep the faith!

Patricia

Never give up! Always strive to get up!

Bob, my advice is to drive by the area at different times during the day and night and see if this is something you can see yourself renting or flipping. Just because its free doesn't mean its worth something. I was offered two free homes and took one of them because I wanted to help a friend. Well I could not find anyone to fix the house, I had to do the repairs myself, NOT FUN!! Once it was ready to be rented, I put a family in there and one night I went to pick up rent and the tenant pulls a gun to my head and said to me I am not going to pay you anymore rent. I immediately went to the police station and the police officer told me to walk away and give the house to anyone for free!!
Just my two cents!!
Raymond

No one has even ask his experience level or what city he is in. yet some are saying go rehab it do it. if its his first experience that would be crazy. A GUARD in the car i say run as fast as you can this is not a beginners project. revitalization could take months if not years to get things through city government. BOB I SAY RUN GO FIND WHERE PEOPLE WANT TO LIVE. He never even told us what city and so many are saying go do it. doesn't make sense to me.

BOB GO FILL OUT YOUR PROFILE INFO THAT IS SOOO IMPORTANT........
not trying to step on any ones toes or offend anyone i just think its wrong. what if this is in los angeles or something soon as he puts in new copper it would be gone that night
just saying

RUN,
WALT

Walt, I agree with you!! Nothing in life is ever FREE!!!
Raymond

he needs to fill out bio to better be able to know his level as well as to network with others, quite possibly in the same area.

Worst case scenario - the property is on the tax assessors roll with a land value. Take the house for free and donate it to a local charity and take the tax write off.

She probably owes a lot of back taxes on it. Even if it's not worth much, those can add up. If something sounds too good to be true, it usually is! Just MHO.

shirley

I would check to see if your local charity would be able to take a house or land as a charity. I tried several times donating or giving items, even a car for free to several local charities and they told me that they couldn't accept the car or several items that I had. Make sure you have an end plan before you take it because in the long run it could cost you a lot of money. The house could be on the city hall demolition list and if you are the owner of the property you would have to pay for the house being demolished. It happened to a friend of mine.
Raymond

Bob,

You got lots of varying input here. Find out what works for you and let us know.
This one might be fun to hear what happens if you don't do it.

-Tina

Hi Bob,

So,have you made a decision? Did you get the house?

"I tried several times donating or giving items, even a car for free to several local charities and they told me that they couldn't accept the car or several items that I had."

It depends on if the charity has the legal support system to take certain types of donations, or the methods to convert them to cash or be managed. Here is a list of some of the donations a local charity in my area takes:

Additional gifts
Cash
Securities
Real Estate
Bank Account Beneficiary
Charitable Lead Trust
Contingent Beneficiary
IRAs & Pension Plans
Life Estate Gifts
Life Insurance
Pooled Income Fund

Sometimes there could be a donation to a fire department for training purposes which would clear the land. This could also become a potential tax deduction for fair market value.
Jimmy

this is just my opinion but i would advertise or market it with the permission of the the owners.as said above....by tina to get a prelim title search. if not just market it on craigslist .....WITHOUT a contract....if you get a buyer great ....if you dont ....guess what....you are building a buyers list .....THIS IS EXACTLY the situation you want ....costs nothing and u have a property BUILDING CRAZY CALLS INQUIRING about a property....be SURE to keep all callers info on every call !!! what they r looking for ....how much they have to spend? what area they r looking for .....alll this is future buyers if they dont want this one !!! GREEEEEAT opportunity ))

jay