New Project: Due Diligence Phase California Form: 17 Days Due Diligence Inspections of any type Some Sellers (Banks) may Counter Offer with less time (everything is negotiable) 3405 N Miami, 93727 Check it out at Cyberhomes.com What Should I Do With This House? G r e e n E a r t h E q u i t i e s . C o m
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Due Diligence Phase Options 1. Decline, Back Out . (No reason required) (Make sure to be within the time frame or the seller WILL keep your deposit) 2. Ask for more time (in writing, within time frame) G r e e n E a r t h E q u i t i e s . C o m
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Due Diligence Phase 3. Close the Sale 4. Give the deal a HAIR CUT My haircuts have been 13,000, 15,000, 6,500, 0, 5,000, 2,500, 3,500, 20,500 Worth the Effort? You Have Not If You Ask Not! G r e e n E a r t h E q u i t i e s . C o m
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Haircut Notes
1. If you reference inspection issues, You MUST include the inspections with your request. It’s a
Double edged sword. Whatever you reference is now part of the record and must be revealed to subsequent buyers By you, if you buy it Or the Seller if you dont G r e e n E a r t h E q u i t i e s . C o m
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Haircut Notes Example: If you use the “M� word (mold) You are opening up the Mold issue. The Bank must deal with it.... Perhaps by giving a further discount. If you buy the property, you must now show that you have resolved the mold issue by the time you re-sell it. G r e e n E a r t h E q u i t i e s . C o m
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Mold Notes 1. Mold is everywhere. In the air we breathe all the time 2. Mold needs 3 things to grow and thrive A. Moisture B. Food Supply C. Temperature Mold will not thrive in Fresno if the home is built and maintained properly G r e e n E a r t h E q u i t i e s . C o m
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Mold Notes 3. There are 2 Categories of Mold for our purposes A. Bad Mold (Stachyobatries) B. Other Types A test kit from Home Depot will tell A or B If the mold is not clearly Other Types, Refer to an Industrial Hygenist or Mold Specialist. G r e e n E a r t h E q u i t i e s . C o m
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Mold Notes Some Reasons Mold Grows 1. Reverse grading leading rain and irrigation water into the walls of the house. 2. Inadequate mechanical ventilation scheme combined with a fairly tight house and interior generated moisture. 3. Plumbing Leaks. G r e e n E a r t h E q u i t i e s . C o m
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Mold Notes In some cases the Mold can be dealt with by the fact that it all went away in the dumpster. Under Sink Cabinets, etc Removing the contributing cause is essential or remediation will be worthless. Fix the grading, fix the leaks, add ventilation. G r e e n E a r t h E q u i t i e s . C o m
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Mold Notes Mold may be your best freind or worst enemy. If already revealed, it will keep away a majority of your competitors and you may get a good price. If it is “Bad Mold� remediation will be expensive and you should nail this number down before removing your contingencies. G r e e n E a r t h E q u i t i e s . C o m
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HairCut Request The Cover Letter Remember, These decisions are made somewhere else. This is your chance at a “Sales Presentation” Here’s a Sample: In Escrow at $80,000 Request $7,800 Inspection Costs <$500 Haircut $5,000 Was It Worth It? G r e e n E a r t h E q u i t i e s . C o m
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Jennifer We have completed our inspections on 4404 N Eddy and unfortunately found more issues than were originally visible when we made our full price offer. We would not ask for an adjustment for the things that were obvious but the following points were not originally observable. 1. Sewer inspection. Reveals that the line has been replaced to the sidewalk. However, roots have penetrated the line from the sidewalk to the main in the center of the street. I have the CD of the camera going thru the pipe that Praytor & Sons Plumbing made during the inspection and the roots show very clearly. I have been unable to copy it in order to email it but it is available if you or the seller would like it. 2. Roof Structure. We knew we would have to replace the roof and that is not the issue. At issue is that the excessive weight of current roof overloading has damaged the structure and will require remedial purlins and bracing to take the sag out of the ridge, and the south side valley. See McClintock report item Exterior #3, & #4. 3. Unpermitted Items. Initial research shows no permit or inspections for the Patio Roof, The Fish Pond and the Garage conversion and Garage closet. See McClintock report Exterior #5,& 6 and Interior #8 4. Mold has been confirmed in the Garage closet which must be removed. 5. Firewall between house and garage has been breeched and must be replaced as a safety issue. See McClintock report Interior #9 The rest of the items are just wear and tear of a home of this age and were not a surprise to me. These items listed above, however, are going to break my planned budget. I would like to proceed with the project, but am requesting a $7800 adjustment. Please convey my request to the seller. Time is of the essence. ThankYou Dave Robinson
HairCut Request On 4404 N Eddy G r e e n E a r t h E q u i t i e s . C o m
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This is the real report from the Haircut Request shown above. This Inspector’s expertise is in the code. He was formerly a plan checker and currently provides plans for GreenEarthEquities when necessary. Do you think he introduces more “Poison Pills” than I want to deal with later? Do you see the report working with the cover letter?
G r e e n E a r t h E q u i t i e s . C o m
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G r e e n E a r t h E q u i t i e s . C o m
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G r e e n E a r t h E q u i t i e s . C o m
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G r e e n E a r t h E q u i t i e s . C o m
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HairCut Request Photos can be sent along with the HairCut Request Which of the next 4 photos do you think I should send along? How much do you think I will get?
3405 N Miami Front Entry Porch Illegal Addition Adds to the Ugly Factor. Will fit nicely in 40 yd dumpster on Day#1 G r e e n E a r t h E q u i t i e s . C o m
New Project in Due Diligence
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Most Bathrooms of Foreclosed Homes Look Similar To This.
G r e e n E a r t h E q u i t i e s . C o m
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Guess Whatâ&#x20AC;&#x2122;s On The Other Side Of This Wall?
Is This Stachyobotrys? See the CDC site http://www.cdc.gov/ MOLD/stachy.htm For Remediation with Bleach
G r e e n E a r t h E q u i t i e s . C o m
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Not A Good Idea To Walk On This Roof Are the Truss Chords Damaged? Or only the plywood? Big (huge) cost difference to repair.
G r e e n E a r t h E q u i t i e s . C o m
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In Escrow @ $50,000
Questions: 1. Should I Proceed?
See CMA next slide
2. How Much Haircut do you think I should ask for? See 3. How much do you predict Cyberhomes that I will get? 4. I’m thinking of “officing” at 3405 N Miami for the next few months. If I do, how much would you like to be involved in Renovating this house? Email me if you’re interested. G r e e n E a r t h E q u i t i e s . C o m
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Control Your Comps. Help Your Appraiser. Buy Close Together. Ezie & Purdue make it easy to know Miami will sell @ $145-150
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