Hi All,
I learned how to do just about everything in home construction in my 15+ years of being a carpenter. While I don’t have lots of cash i’m loking for a way to be able to use my skills towards owning a home. I’m in San Diego county and property is at a premium. I can’t get into a house as-is in this market. I have found some property within 100 miles in the $140K range and this is about my ceiling. I want to make a “custom” home. I don’t have the resources to start from scratch ie;architect/permits etc.. and I’d love to find a severe “fix-er-upper” but am not even sure where to begin to look.
I’m afraid I spent too much time behind the hammer and not enough behind the desk. I’m good at what I do and want to be able to use my skills in lieu of a large down payment. I have about $10K and “rebuilding credit” which should be looking quite good by years end.
Thanks for any help,
N
Edited 3/24/2003 4:17:25 PM ET by notrix
Replies
Try typing in repos[your state. ] Mine is Tower auctions .com . Try VA repos for your state. Legals in the back of the news paper. Watch the for sale by owner adds, and drive your area looking for empties. Call the banks on a regular basis [every bank] and you will get to know the person in charge of repo property. Look up your hud site in your state on puter. I think its http://www.hudorg.com , if not do a search. These are some of the ways I buy properties. Do you get the bankrupt list in your paper? Have you thought about building a duplex ?
Tim Mooney
It is http://www.hud.gov
There are a number of ways to get started, and you will be asked to try all of them until the proper chance comes along. I will catch some flack for saying so, but if you can find the right one, a good real estate agent can be helpful. But let them know what you are up to at the beginning, a few will find it interesting and be helpful. Also spend some time finding a loan broker that wiill take time to explain what limits they will have for mortgages and remodel loans. FHA used to have what they called 203 rehab loans that could help. Have you considered leaving San Diego for cheaper areas. The little that I know about the area sounds as if it is way above a lot of our budgets, there are cheaper and still very nice areas to live. Look for abused properties, and then check public records to see who ownes them. If you spend enough time, it can be very worthwile, but it is work. If you want to get answers from others, they will want paid for the time. Persistence can cover a lot of other mistakes, but be careful. Learn all that you can about Title insurance. Especialy with Repos, it is technical reading, but very needed if disaster is to be avoided.
Send more questions, somebody here can certainly help.
Dan
severe fix-er-upper?
Did someone say 'severe fix-er-upper'?
Roar!
Cmon, rez, that's what us real estate brokers call "Turn Key"! I can see the ad now: "Cozy location, mature vegetation, lots of extras!" It doesn't matter how fast you get there, it just matters that you go in the right direction.
sorry has-
just one of those things that happen and ya can't resist.
not so funny is I fixed it a bit and the suckers re-evaluated it and upped my realestate taxes 70 %. blood suckers man.
Edited 3/24/2003 10:49:42 PM ET by rez
In the town I live in we have lots of homes that don't look a lot better, some worse. We tend to have three kinds of houses here: The kind nobody from here can afford. The kind that look more like your picture. The country homes of the retiring gentry.
In 1995 we bought two small homes on adjoining lots for $26K and now I'm about to start the third new stick built home built in our town in the last three years. Guess the building boom is about over......... {G}It doesn't matter how fast you get there, it just matters that you go in the right direction.
Well around here that would be considered "historical" and sell at a premium!
I got to thinking about this because I was driving past a pair of homes that were only about 20% framed for about 5 years. I figure the timbers may be wasted but the foundation sound and electrical/water/gas etc.. ready to go permit wise ( or the lack there of stalled it). It was finally picked up by someone and finished up. Could have been the original owner etc..but I'm guessing a few "custom" homes have this history. Owner gets in over their head or has other problems and the bank is basically stuck with a slab and some sticks. Perfect for me. I'm not sure how I'd feel being a "vulture" on such a job but if the circumstances were right I'd be more than happy to step in.
I guess another question is how do you get a loan for building a house? Is it easier than buying one already built? Sorry I'm real lacking in the banking financial area and my bank is zero help as it's run on formulas. I'm a few years removed from being full time in the field but put in a good 15 years and still do side jobs now and then.
Would getting my contractors license make this process easier?
Ya gotta start somewhere so here I am!<G>
Thanks again,
N
I think some folks might call you an answer to a problem and not a vulture. Where you're talking about looks too different from my 'backwoods out of the zone style dozerhouse save and salvage' kind of thing.
Seeing you have the skills , desire and financial motivation to pursue an old fixerupper I think you could successfully do it.
That fact that you're here and digging for data is the right approach. I'm one of those 'the bank and building inspector is not your friend' kind of guys so I probably can't help you out much.
It doesn't hurt to make a low offer on an old building whether for sale or not. All they can say is no.
In San Diego those 2x's may still be OK! I'd check before I reject..
But there may be a bunch of legal issues with those homes that would make it a mess to straighten out.. whatever you do don't do anything without a good lawyer checking everything!
Somthin' you build :)???View ImageGo Jayhawks
Looking at that picture I'm thinking.....NICE!!!!!! Kinda was like my first fixer upper that my family lived in while I renovated it alone.
I fixed up two rooms ASAP, and we lived in em while I did the rest. With a tiny fridge, hot plates etc etc.
The town (school district)location was primooooooo and no one wanted that piece a crap which is how I got it so cheap. $85000 (with a $65000 mortgage at 18 3/4% interest rate at the time) but a bad location in the primo hood, but in a primo hood non the less.
Got us started.
I think I've made more money over the years looking at what others DONT want but have value if youre willing to deal with it.
I personally love the challage.
The foundation and framing were in good shape so I went to work the day I bought it.
Sold it many years later to a lawyer and his college proffesor wife and bought another handy andy special not quite as bad in a prime area but in horrible shape.....sold it and guess where I am now?
Well I think most of you know......in yet "another" falling down house soon to be my most infamous work.
Most peeps in this sect of town are laughing at me for buying it.....the peeps in my wife's real estate office snicker right in front of her just like they did when I refused to lower my price on the house I just sold.....laugh all ya want you yentas.
JUST WATCH ME!
Thats the attitude you need!
Be equipped, be prepared, and be gung ho (but mostly be realistic yeh sure lol)
Namaste
andy
PS....I've yet to have let myself or my family down....it so rocks living on the edge...... where youre in control of your own stock.
"Understanding yourself is like trying to bite your own teeth"
Alan Watts
http://CLIFFORDRENOVATIONS.COM
I remember when I bought our first one to live in after selling "her home " after we got married. No one could stand to stand in it with out the attic fan running . I remember her parents thinking I was surely her demise . Actually her whole family gave her heck , not to mention her friends. There has been many more like that [and worse]. I bought a house jacked up with out a floor under it as it had been moved in and set there for several years because the house mover couldnt get financing to fix it. She never lost faith [maybe because of the money she deposited after closing]. We took one sale and made another time after time only to end up in "a house no one wanted". Then the rentals came. No one laughs any more .
I couldnt have done it with out her support . Shes my rock. She is able to hold her head up in front of her friends and family and speak her mind. Shes proud of what we have done. We arent planning on stopping.
Oh by the way , Ive done worse than the house posted several times , and better. Just dont look up and it will happen.
Tim Mooney
Hey tim
I think our topic deserves a regular space in FHB. Too many cool stories in these adventures. Ya know?
Be adiment
Namaste
Andy
"Understanding yourself is like trying to bite your own teeth"
Alan Watts
http://CLIFFORDRENOVATIONS.COM
I'm North of you in the Temecula Area and one of the things you might consider is buying a small piece of property that has no utilities and water. Drill a well and have power, phone, cable brought in. These type of properties tend to be undervalued because most people don't want the "burdeon" of building. If you are in good with some of the other subs in your area, you might find that "bartering" has some tax benefits as well. (lets see: state tax, fed tax, insurance,worker's comp,social security tax, just to name a few) When you do barter, you are suposed to include the barter as income because you have both profited( I have yet to profit from a barter). I know of a very reputable land guy to talk to in Temecula. He helped us buy our home on 2 1/2 acres, 1300 sq', bad well, fully fenced, for $86,000 8 years ago. Oh yeah, I left out the opart that is was a pot farm that was raided by the DEA and forclosed on by the bank because he couldn't make the paymen. I wonder why? It will be on the market for $400-440,000 within the next month and he will be representing us on the sale. I also have put a 2,000 sq' shop on the property so I haven't had to pay shop rent for 6 years. lets see: 2,000sq'X$.50sq'X12mosX6yrs=$72,000 that I didn't pay in rent. Helped me survive the last recession when other shops closed their doors. Plus, the commute was only 30 seconds. Not even enough time for the coffee to get cold
Let me know by email if you want to know more about this area or how to get in touch a good land guy. He goes way down South-I think > I'm off of Scott Rd and Interstate 215
I liked the old FH a while back where the couple put up this nice garage with living space over it to live in for a couple of years until they could get their real house together.
I don't do any residential work in California, but all my business is manufacturing facilities. I have talked to enough other people to know that seismic design is a major consideration. You will likely need a permit and if you take out a loan, the loaning company will most likely want assurances that the structure complies with the codes. You may be able to comply by using stock plans, but be sure to check before plunking down your money for those.
I am north of you in the Riverside county area. Lots of opportunities up here, but you need to be persistent. Many of the real fixer uppers are missed by the general public. I found mine through a friend of a friend. Mainly luck preceeded by a lot of hard work, funny how that works. A good agent can help, but be careful. Not to many are interested in your situation and don't want to take the time to help you search. I found most of the auctions and repos in this area are snagged by the real estate agents who are in bed with the bankers. Just don't get discouraged. I bought my "severe fixer upper for $159K five years ago. I'm still fixing, but my latest appraisel was $575K!! Look beyond the cosmetics, most buyers dont and spot the real potential. Good luck!