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My experience in trying to buy a fixer upper and gain some sweat equity, was that it is a complete and total myth for a non-investor. I went to a half dozen of them with my realtor and every single one was crawling with investors/contractors, every single one went under contract with extremely short due diligence periods (72 hours to close.) If you didn’t have cash to close tomorrow, you were fooling Yourself.
We bought a flip. I have no complaints about the house but them grapes are bitter.
Yes. My understanding is that this is typical in many markets. My sister lives in the SF Bay Area. In many cases, properties would actually go back on the market for rent, less than would be enough to cover a mortgage. It was clearly foreign investors. I don’t think this is the case all the time. It looks like the house across from me was bought by people who are living there and working on it on evenings and weekends, but I think it was marketed as a tear down.
I will agree that you are lost but will take no credit for it - you got there yourself.
I'm not the one who brought frustration, jealousy and now some mysterious, fictitious coworker into the mix. It's also not about what you own, where you live or anything about your family. I never talked about classes of people - saintly, evil or otherwise regardless of how rich or poor they might be. No one here questioned your work ethic or the choices you've made. How much you own and how much cash you can shove in a briefcase is apparently very important to you but is not something I asked or care about. I'm not here to evoke dramatics.
My question was really quite simple - each time I asked.
And I answered you. I don't "feel financially constrained" because other people buy fixers to live in. I do feel frustrated when I hear misinformation being fed to the gullible and arrogant. Im likewise annoyed if amd when those types of people ask for resources to get themselves out of bad situations they could have prevented with a little common sense.
Please stop trying to derail this thread because you think you know more about this than the many people who have shared their experiences. Come back after you have worked in a fixer every evening for a year, drained your savings and still don't have a pleasant, safe place to live and comment.
My experience in trying to buy a fixer upper and gain some sweat equity, was that it is a complete and total myth for a non-investor. I went to a half dozen of them with my realtor and every single one was crawling with investors/contractors, every single one went under contract with extremely short due diligence periods (72 hours to close.) If you didn’t have cash to close tomorrow, you were fooling Yourself.
We bought a flip. I have no complaints about the house but them grapes are bitter.
Yes. This is true in many places, even outside of major markets. The flipping way to vast riches has been made popular by many a TV show and most investors have cash to buy. Individual owners are typically shut out of the offers altogether. Thats when the letter writing comes in "please sell to us and not these terrible people who just want to profit off your beloved home" sort of emotional appeal.
Not all flips are terrible but most are. You have to choose very very carefully as an investor because you can easily eat up your margins with one significant repair you didn't anticipate. We don't do flips much these days but certainly have in the past. When given the choice between losing profit and slapping a bandaid on an issue, most flippers choose the bandaid. Many people have a group who has dumped cash in and sometimes those partners are going to get paid whether you are or not.
So the new owner inherits a home where the cosmetics are done but the big issues may still be lurking. You can look at this in a "glass half full"-- cosmetics can be pricey, issues that are already discovered should be disclosed. That's more than you get with your average fixer, but 9f course your up front cost is higher.
There's nothing free in the world of real estate. People who believe that they will magically develop the professional level home repair and construction skills needed to fix up a run down property are in for a very rude and expensive awakening. I wish this entire topic was portrayed much more realistically in the media.
This is a fascinating thread for me, as I own a 1960 brick home that has had very little done in the way of interior work. The kitchen and bathrooms are all original, and yes, it shows, although everything is functional. The basement was finished on the cheap in the late 60's, but I tore most of it out, so it's back to being "half unfinished" (9" tile still present in about half, etc.). I just had new HVAC put in, new windows installed about six years ago, and the roof is near the end of its service life (it still looks good, but it's going on twenty years). Much of the interior is old wallpaper and it needs paint everywhere inside. There are maybe six or eight hairline cracks in the 42" deep concrete basement walls that weep during heavy rains, cost to repair has been quoted at about $400 per (epoxy-injected from the inside). All of the appliances (stove, oven, refrigerator, washer/dryer) are all either original or at the end of their service lives. The concrete driveway is cracked and broken in areas. The landscaping is mowed, but certainly not "House Beautiful". Electric is 100 amp, and fused, my guess is a buyer's lender will require breakers, cost to replace the panel and add required extra ground will be about $2500. The home next door sold for about $230K several years ago, but it had been completely remodeled and updated.
Anyway, please keep going. I'm looking hard at calling the "ugly house guys" and see what they'll offer, I want to move and simply don't have the energy to do everything this place needs. But I do have one question - the "ugly house guys" will likely act as a go-between and sell it to an investor/flipper. What is the best way to find my OWN investor/flipper? I'd take $145K for it today and be happy for it.
You sound like a good candidate for one of those "we buy ugly houses" groups. Typically offers are about 80% of market value. I don't know what market you are in but if you are ok with that it might be a good option for you
You could do a for sale by owner but you may run into a realtor who wants a cut for bringing a client. You could list with a low commission or flat commission outfit like Redfin if its in your area. Or you could just advertise locally and on social media...FB, Nextdoor etc saying that you are looking for an investor to purchase your property. You could also identify properties for sale that are obviously flips (bought a few months ago, repainted and staged/relisted) find the owners through a county record or deed search and start cold calling. Or merely Google real.estate investors in your area or house flippers and start contacting them. Good luck!
Yes. This is true in many places, even outside of major markets. The flipping way to vast riches has been made popular by many a TV show and most investors have cash to buy. Individual owners are typically shut out of the offers altogether. Thats when the letter writing comes in "please sell to us and not these terrible people who just want to profit off your beloved home" sort of emotional appeal.
Not all flips are terrible but most are. You have to choose very very carefully as an investor because you can easily eat up your margins with one significant repair you didn't anticipate. We don't do flips much these days but certainly have in the past. When given the choice between losing profit and slapping a bandaid on an issue, most flippers choose the bandaid. Many people have a group who has dumped cash in and sometimes those partners are going to get paid whether you are or not.
So the new owner inherits a home where the cosmetics are done but the big issues may still be lurking. You can look at this in a "glass half full"-- cosmetics can be pricey, issues that are already discovered should be disclosed. That's more than you get with your average fixer, but 9f course your up front cost is higher.
There's nothing free in the world of real estate. People who believe that they will magically develop the professional level home repair and construction skills needed to fix up a run down property are in for a very rude and expensive awakening. I wish this entire topic was portrayed much more realistically in the media.
There were some that were quite clearly dollar-store lipstick on a pig. I could point at things the flipper didn't do that someone else might have, but it's honestly hypocritical. The house has a new roof, hot water heater and furnace/ac.
I could throw stones about the crummy deck and original inneficient windows but everyone has a budget. I chose to skip replacing the deck this year in lieu of removing a threatening tree and replacing a failing lawn mower.
There were some that were quite clearly dollar-store lipstick on a pig. I could point at things the flipper didn't do that someone else might have, but it's honestly hypocritical. The house has a new roof, hot water heater and furnace/ac.
I could throw stones about the crummy deck and original inneficient windows but everyone has a budget. I chose to skip replacing the deck this year in lieu of removing a threatening tree and replacing a failing lawn mower.
No one has an inexhaustible supply of time or money. You choose your battles.
It sounds like you made a reasonable decision and got a place that works for you. That's a fantastic outcome.
What happens to the value once the historic house is moved from its original location? Are any covenants and restrictions tied to the dwelling, the address, or only the combination of both?
Nothing happens to the value because it was moved. Houses are valued on square footage, location and to some extent condition and amenities. However in our particular case the value did go down not because of the move, but because of the location. we live in a township made up of 14 tightly clustered islands usually considered a single island by most people. The house was on the rich side of the island. They have about 2 miles of water in front of them and then Canada on the opposite shore. Freighters go b daily and are fun to watch. Everyone has a dock. Empty lots cost at least $450,000 and the house was on one of the better lots on that side of the island. We moved it to the "poor" side of the island. we only have 1/3 mile of water between us and the Michigan shoreline and there is an abandoned steel mill on the Michigan shoreline (currently being demolished). Lots on our side of the island run about $150,000- $200,000. So while we never had the house appraised when it was on the expensive side of the island, it certainly dropped in vlaue when we moved it. On the other hand, given that we paid $1 for it, it did nto drop in value, it was still worth $1 after we moved it (probably more). After we sunk the money into building a new kitchen, new basement, new roof, new hvac, new electrical and plumbing, refinishing floors, replacing light fixtures, refinishing walls and ceilings, etc, then it probably gained more value than it had even on the expensive side of the island. Sad thing is, they guy who wanted to get rid of the house to build a fancier house on the lot over on the high dollar side got hit by the recession (as did we) and never built the house. The empty lot is now for sale.
A historic house that has been moved can no longer be listed on the national register of historic places, but that does not impact the value. Appraisers do nto care about listing on the national registry unless the house is super famous.
We do have facade easements. We need to get approval for facade changes that change the character of the house. For example, we probably would not be allowed to put vinyl windows on it, but who would want to?
Frankly I doubt the historical society is even aware they have a facade easement. the people who were involved are no longer there and I do not think they ever recorded it.
Our house does have a neat history. It was used to trade with native Americans early on. It was also the first post office - not officially, but because the postmaster lived there and they did not have a post office, so it became the defacto post office. The family who lived in the house for 100 years was a well known family and there are several geographic features named after the family in our area. Then in 1946 one of the first female doctors in our area used part of the house as her medical office because no area hospitals would accept a female doctor. She became a well known advocate of women's reproductive treatment in foreign countries, and he husband was related to the Stryker family (Stryker medical is a huge global medical company). So there is some interesting history which might make the house more desirable to about 2% of the potential buyers. Nothing that will make any difference in price.
You sound like a good candidate for one of those "we buy ugly houses" groups. Typically offers are about 80% of market value. I don't know what market you are in but if you are ok with that it might be a good option for you
You could do a for sale by owner but you may run into a realtor who wants a cut for bringing a client. You could list with a low commission or flat commission outfit like Redfin if its in your area. Or you could just advertise locally and on social media...FB, Nextdoor etc saying that you are looking for an investor to purchase your property. You could also identify properties for sale that are obviously flips (bought a few months ago, repainted and staged/relisted) find the owners through a county record or deed search and start cold calling. Or merely Google real.estate investors in your area or house flippers and start contacting them. Good luck!
Thanks for the advice and well-wishes. I'm in suburban Chicago, part of the problem is the Covid Effect and the uncertainty that brings. Plus, the house is full of antiques and stuff I would have to empty out prior to putting it on the market even as-is, and a couple of big dogs makes it hard to show as well. I had planned to do it all myself in retirement, but got injured (lower back and arthritis) and can't lift much anymore. The good part is that I do have options, I have the resources to hire all the work done, but that would freeze out any buyers who would have preferred to do the work themselves, or choose higher-or-lower end amenities, especially appliances. I guess what I will do is bring in a Realtor and get their advice, and also an Ugly House guy. Being in a high-risk group for the Covid, I'm not thrilled at the idea of having a bunch of strangers traipse through at this point. What would be ideal, would be to find a young couple looking to put in sweat-equity for a reduced price off market value, letting them have the entire realtor commission-plus.
I'll take your advice on how to find one - going back through the sales records is an especially good idea. I've got an ex-co worker who's a Realtor, I think I'll start with him.
You sound like a good candidate for one of those "we buy ugly houses" groups. Typically offers are about 80% of market value. I don't know what market you are in but if you are ok with that it might be a good option for you
You could do a for sale by owner but you may run into a realtor who wants a cut for bringing a client. You could list with a low commission or flat commission outfit like Redfin if its in your area. Or you could just advertise locally and on social media...FB, Nextdoor etc saying that you are looking for an investor to purchase your property. You could also identify properties for sale that are obviously flips (bought a few months ago, repainted and staged/relisted) find the owners through a county record or deed search and start cold calling. Or merely Google real.estate investors in your area or house flippers and start contacting them. Good luck!
Thanks for the advice and well-wishes. I'm in suburban Chicago, part of the problem is the Covid Effect and the uncertainty that brings. Plus, the house is full of antiques and stuff I would have to empty out prior to putting it on the market even as-is, and a couple of big dogs makes it hard to show as well. I had planned to do it all myself in retirement, but got injured (lower back and arthritis) and can't lift much anymore. The good part is that I do have options, I have the resources to hire all the work done, but that would freeze out any buyers who would have preferred to do the work themselves, or choose higher-or-lower end amenities, especially appliances. I guess what I will do is bring in a Realtor and get their advice, and also an Ugly House guy. Being in a high-risk group for the Covid, I'm not thrilled at the idea of having a bunch of strangers traipse through at this point. What would be ideal, would be to find a young couple looking to put in sweat-equity for a reduced price off market value, letting them have the entire realtor commission-plus.
I'll take your advice on how to find one - going back through the sales records is an especially good idea. I've got an ex-co worker who's a Realtor, I think I'll start with him.
All of our properties were fixers. You have to buy right and be handy. We're working on our last rental/fixer now. I'm hoping to have it on the market sometime in October. The property has already paid for itself in positive cash flow and I don't want to make a big profit on it for tax purposes. The last rental we fixed up which had paid for itself as well put us in a different tax bracket when we sold it. We are too close to filing for Medicare and those premiums are based on income. If we break even or make a small profit? I'll be happy with that.
My biggest fear right now is that the foreclosures are going to start soon, and tank the still reasonably strong market here. I'm kind of slow because I'm on a weigh limit of ten pounds until September 18th. Being post op throws a monkey wrench into things for sure. I wish I could do more than just paint right now because after 15 gallons and 12 straight days, that's finished for now.
Our house was a super money pit fixer. We've put over $125,000 into it but we bought it right and it's worth twice what we have in it. Well that's for now. We'll see what happens when the foreclosures hit. We aren't selling it anytime soon and I'm hoping to be carried out feet first, so it doesn't matter what it's worth this time next year.
I would never buy anything but a fixer. You just have to do your home work and buy right.
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