Hello Fellow Real Estate Professionals:
If you missed the first installment on this topic and would like to get up to speed please see link below:
When last we left off, I shared a potential complication in performing 203K type loans on properties that have previously had unpermitted work. I want to share how this situation was resolved. We personally spoke with the head of building inspections for the city in which the home is located. We took time to explain the scenario to him and made sure that we were on the same page. We were able to come up with a reasonable solution. After some additional negotiations and paperwork and a little red tape, we were able to have a city inspector come to the home and perform a â€œpreliminaryâ€ inspection. This gave us the opportunity to (1) meet the inspector (2) receive advance notice of required repairs by learning the areas that currently present concerns for him (3) adjust our budgets accordingly.
After our inspection, there were some items that presented concerns that would have to be addressed. One item did require an increase to the initial budget, but this increase did not kill the deal.
There are two ways to look at a scenario like this: (1) We could have just done the work and hoped there was not a problem, or (2) This was a good thing to do because now all materially interested parties to the deal now have an additional â€œCYAâ€ document.
Finally, it goes without saying that this situation may not have been as easily resolved, if at all, had it not been for excellent teamwork. We worked closely and diligently with both agentâ€™s to navigate and ultimately work through this situation. All parties played instrumental roles in moving this deal forward. A good realtor and a good contractor can work miracles. I MUST include mortgage brokers and loan officers in this equation as well. With that said, we are always looking to build new relationships. Give us a call or email if we can ever be of assistance!
Southstar Construction & Remodeling