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Amazing Investment, need advice PLEASE

Posted on: 16th Sep, 2006 07:59 pm
Currently, I have a situation where there is a couple who has 1 acre of land in upstate NY in a residential neighborhood with a house built on it that is a two (2) family home. This house is a DUMP, I mean that and that is being NICE.

Basically, this neighborhood is really nice and the houses are all very well-kept. This house is an eye-sore that every single neighbor has been upset about for almost 5 years now. The couple inherited the home from her (the wife\'s) father. It is embarrassing and they want to move. They can\'t even afford to fix the second side of the house up to rent it NOR can they even afford to get it appraised. They are probably the most naive people I have ever met.

Again, this is really probably the one deal in my life that seems like it is too good to be true. From what I am telling you, you would think this is the ghetto but IT IS NOT. The neighborhood is extremely nice and these people are so far out there no one speaks to them.

The other day they told me they want to try to get $20,000 for the entire property. My house we just moved from was $600,000 in Arizona (Scottsdale, AZ) and I am so dumbfounded I can\'t sleep. I want to give them this cash NOW to secure the deal.

I have never done a real estate deal like this and my questions may sound ridiculous - but can I finance the cost of buying the land and another $150 - $170k to build a home after I demolish this dump. How does this work? Who do I contact about building a new property and buying land? I can buy the land and put $50k - $55k down...but what is the best advice you may have? The houses around here are all appraised at $200\'s (house is 2,700 sq. ft. for both sides - and hear me out - this neighborhood...this is the ONLY house with a two family house)...or should I have an architect advise on doing a HUGE remodel of this crapper?

[color=red:fedc63c912][size=9:fedc63c912][Email address deleted as per forum rules. Thanks.][/size:fedc63c912][/color:fedc63c912]
Hi Mekea,

I think you can buy the land and build a new home on it after demolishing it. For buying the land, you need to contact the local office of the Land Registry so that you can register the land. You also need to sign a deed so that the title of the property (land and building) is in your name. The deed should be recorded at the Land Registry.

If you want to get a mortgage loan for buying property, you may contact a suitable lender or else you may use cash if possible. For building property, you can contact the local office of the National Association of Home Builders (NAHB) and search for a suitable builder near your city. You need to fill up the details asked for at http://www.nahb.org/local_association_search_form.aspx in order to get a local builder.

Thanks,

Sara.
Posted on: 17th Sep, 2006 08:20 am
Hi Mekea,

"should I have an architect advise on doing a HUGE remodel of this crapper? "
Whether you construct a new building or go for a huge remodelling, an architect can help you in either process regarding how you can give the best look to your new home.

But first of all, you need to get a rough estimate of the probable costs of building the home and remodelling so that you can compare. Then if you find that the costs are more or less equal, you may go for building a new house on the land.

Contact a local builder and try to figure out the possible cost of rebuilding and remodelling.

"Who do I contact about buying land?"
For buying the land and property on it, you should contact a real estate agent to carry out the closing or settlement where legal papers are signed.

Thanks,

Caron.
Posted on: 17th Sep, 2006 08:34 am
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