Question about a house project - Contractor Talk - Professional Construction and Remodeling Forum

Ken@K&R · 02-02-2006, 11:07 PM

Im not sure where to start on this one. I have had a GC friend of mine ask if I wanted to purchase a house. The floor of the house is sagging and some floor joists are broke. Its a bit beyond my scope of work. Who does this type of work? Not sure if this is in a GC line of work. The house is right in the middle of a newly planned sub division the GC is going to develope thats going to offer homes in the $140,000 range. He dosent want to fool with repairing it and offered to sell it to us for $10,000 including a 1/2 acre of land. He said once its done it should sell in the $140k range also. Im going to take a look at it this weekend and get a better idea of the shape of it. I have been told all it needs is the floor repaired and a new heat pump installed. Sounds a bit too good to be true but this guy has been very helpful so far and I can see that with him building 20 houses with a small crew that he wouldnt want to fool with it and it would cost maybe $5 K just to demo and haul to the land fill. I will try and get some pics to post and maybe get some input from the more experianced here on the fourms. Either way I got the electrical on the other 20 houses so it's all good.

mdshunk · 02-02-2006, 11:17 PM

I'd buy it, sight unseen just about. When the area is developed, the land alone will be worth more than that 10K.

This seems like a no-brainer to me. And, yes, the repairs you describe that are required fall into the scope of the general contractor. As a person once told me, "The general in general contractor means that they do the work no one else generally wants to do."

**Cole** · 02-02-2006, 11:43 PM

Quote:

Originally Posted by mdshunk

I'd buy it, sight unseen just about. When the area is developed, the land alone will be worth more than that 10K.

This seems like a no-brainer to me. And, yes, the repairs you describe that are required fall into the scope of the general contractor. As a person once told me, "The general in general contractor means that they do the work no one else generally wants to do."

Hell Yeah, buy it.

I would in a second, where is it, I will buy it.

Ken@K&R · 02-02-2006, 11:49 PM

That was our first thought too but I got that nagging person in my head whispering "if it sounds too good to be true it proberbly is". I have managed to ignore that a few times before and ended up regretting it.

mdshunk · 02-02-2006, 11:51 PM

Well, 10K is a steal, but you can be sure of one thing. The house will need more than just a floor repair and a heat pump. Floors don't sag and floor joists don't just break on their own without other factors needing addressed. This house will have issues, but for 10K you can't go wrong. Even if you decided to buy it today and do absolutely nothing with it for years except to board it up, you'd still be doing the right thing, in my opinion.

**Cole** · 02-03-2006, 12:07 AM

I agree!!!

Mike Finley · 02-03-2006, 01:56 AM

Just make sure you aren't buying the rights to a future Super Fund site.

bob the builder · 02-03-2006, 03:00 AM

It reminds me of my parents house. They are not allowed to do any repairs to their house exceeding 30,000$. Reason being the city wants the area to be turned into the down town. Basically it's a powerplay to condemn future development. Its a villiage population 1,200...do your reasearch, 10,000 is probably what the lot is worth...

Bob

jmic · 02-03-2006, 06:01 AM

Something smells fishy. I don't think if this guy is going to develope 20 houses he would want a boarded up mess sitting in the middle of his subdivision. What are lots going for in your area of the same size? Why doesn't any of his employee's pick it up? Something you really have to look at when you go and see this house, and if you're not to familiar with what to look for you ought to bring someone along with you to evaluate it ( a 3rd party). Could be a great deal, then again it could be a money pit. Although if he expects you to be doing all of the electrical work on the new homes it doesn't sound like he would want to stick you. Do you know him really well? Post some pics. Good luck!

Ken@K&R · 02-03-2006, 07:42 AM

Well I started working with him a year ago as full time employee doing odds and end work. Then he found out I specilized in electrical. He put me to work doing all his electrical. Then I went and tested for my electrical license. Well after that he has supplied me with alot of the more expensive tools out of his pocket to get me started and just says go make money with them. He still keeps me on his WC policy to this day. Then he found out my wife has a business degree and she is doing all his office work. I mean he will let me use a 40' extension ladder and even have his crew drop it off at the site and pick it up. I use his dump trailer if needed, bob cat, whatever needed at no charge. The guy's been super nice above and beyond a working relationship in my opinion. He even supplied my with a nextel untill I could afford one. Of course I do his work at a deep deep discount too.
I did find out that the house is a old farm house with 3 old barns on the property too.

noreast05 · 02-03-2006, 08:40 AM

Has the subdivision been approved by the town? Survey done? Do your homework.

A+Carpenter · 02-03-2006, 09:08 AM

I did find out that the house is a old farm house with 3 old barns on the property too.[/quote]

COLE WE HAVE IGNITION^^^^^^ ILL GO WITH YOU

I dont want to sound bad K&R . SOUNDS SHEISTY

Peladu · 02-03-2006, 09:21 AM

Here is my 2 ¢

10K for a building and land….You cant even buy a new car for 10K.

Land…..”they don’t make it anymore”.

Even if the building is a POS, you could wait, bulldoze it and build something of your own.

Finally, I feel that I have been blessed with what I have….if I have the chance to give something to a friend, even if its hard for then to believe at first…I do it. I enjoy ‘opening doors’ for friends. I just wish I had walked through more doors that were opened up for me when I had the chance.

Buy it**…it’s hard (yet not impossible) to go wrong when you purchase land.

**Unless this property is mandated to be a retention pond needed for the new homes

Tom R · 02-03-2006, 05:14 PM

Ken,

Usually I'm the 'suspicious' kind, - - but from what you say about the guy it sure sounds like it's on the up-and-up, - - I'd say go for it, - - sounds like he's both trying to do you (and himself) a favor and get a little cash flow going at the same time, - - you guys have worked well together this far, - - I don't see where anything will go any different. Good Luck with it.

Nick H · 02-03-2006, 05:25 PM

I cant see how the guy would want to shaft you and then have you, the wife and five kids marching around in the middle of his shiny new development waving placards.

If the legals check out I'd go for it.

TimNJ · 02-03-2006, 05:50 PM

Quote:

Originally Posted by Ken@K&R

I did find out that the house is a old farm house with 3 old barns on the property too.

Just make sure there aren't any restrictions on the property such as...historical commision. They may not let you tear it down and it could cost a small fortune if it has to be "restored".
What size is the lot?

jmic · 02-03-2006, 08:26 PM

Quote:

Originally Posted by Ken@K&R

Well I started working with him a year ago as full time employee doing odds and end work. Then he found out I specilized in electrical. He put me to work doing all his electrical. Then I went and tested for my electrical license. Well after that he has supplied me with alot of the more expensive tools out of his pocket to get me started and just says go make money with them. He still keeps me on his WC policy to this day. Then he found out my wife has a business degree and she is doing all his office work. I mean he will let me use a 40' extension ladder and even have his crew drop it off at the site and pick it up. I use his dump trailer if needed, bob cat, whatever needed at no charge. The guy's been super nice above and beyond a working relationship in my opinion. He even supplied my with a nextel untill I could afford one. Of course I do his work at a deep deep discount too.
I did find out that the house is a old farm house with 3 old barns on the property too.

After reading this I'de say go for it!

rino1494 · 02-04-2006, 07:08 AM

Quote:

Originally Posted by Ken@K&R

I did find out that the house is a old farm house with 3 old barns on the property too.

All this on a 1/2 acre lot ???

I am assuming since it is a farm house with barns, that this new subdivision was the farm. So, i guess that he subdivided everything and made this a 1/2 acre lot. Damn, talk about downsizing.