A Man Who Needed Help
When Charlie called us, he was in a tough spot. He had a house he’d owned some time as a rental but it had been vacant for several years and had fallen into disrepair. We arranged a time to meet at the property for a walkthrough. When Jim arrived at the house, he could immediately tell that it was going to be a big job. The front steps were missing a tread, the porch was soft in spots, and the railing was a shambles. Jim knew immediately why Charlie wanted to get rid of this house once he stepped inside.
The entire interior was a wreck – there weren’t any cabinets or fixtures in the kitchen and bathroom and there was a hole the size of a stuffed armchair in the roof! It was rough. After evaluating how much it would cost to put this Humpty Dumpty House back together again, and knowing the current property values in the area, Jim made an offer to buy the house. Charlie accepted the offer immediately out of relief that he wouldn’t have to deal with this property any more. Jim and Charlie signed the contract on the spot and Jim took it to the title company to open escrow and have the title search done.
Is The Deal Dead?
When the title search came back there was a huge obstacle that threatened to blow the whole deal into oblivion, leaving Charlie with this wreck of a house. Charlie hadn’t mentioned that he had about $30,000 in state income tax liens against him. These liens attached to all real estate he owned and would have to be paid before he could sell this house. Many investors would have just walked away at this point, but Jim really wanted to help Charlie get out of this mess and he knew he had the skillset to do just that. With the title report in hand Jim made a call to the state department of revenue. After talking with a tax enforcement officer and sending several pictures showing the condition of the house, Jim negotiated a release of lien on this property provided Charlie surrendered all the proceeds from the sale to the department of revenue.
The deal was back on! With this hurdle cleared, Jim contacted another local investor who specializes in rehabbing properties in the neighborhood. After negotiating a small fee for finding the deal, Jim assigned his interest in the contract to the investor who went on to close the purchase and rehab the property to sell to a new homeowner.
So, who won in this scenario? Everyone! Charlie no longer had to worry about the pit of a house that was falling apart more and more each day (and would likely have been taken in a tax foreclosure eventually). The state collected a portion of their tax money. The investor got a great deal on a rehab property that he was able to sell for a profit. The new homebuyer got a newly remodeled house for a good price. The neighbors got rid of an eyesore on the block and experienced increased property values. And Jim made a little money for putting it all together.
That’s what Integrity Property Solutions is all about. Improving communities by solving problems.