In this video, real estate investor JoAnna Anderson gives an update on her code violation nuisance property that the local county referred to her.
JoAnna acquired this property by networking with her local officials through HOA and other meetings where city officials were at. She made it known to them and others at the meetings that she is a local real estate redeveloper that finds, buys, and fixes up local properties, helping to beauty and restore neighborhoods.
Cities have a vested interest in taking care of the so-called problem properties that they frequently receive calls about and fine for code violations. These code violation, or nuisance properties, are great opportunities for real estate investors.
Networking, and always being prepared, is one of the best ways to get referrals in your area. Always be ready to answer the question, "What do you do?" with a quick elevator pitch of what your business does and how it can help individual homeowners and the community as a whole.
JoAnna funded this deal using a hard money lender in her area. Traditionally she uses private money, but wasn't able to arrange funding through her normal sources. This is one of the many reasons why it's so important to always have multiple sources and options when it comes to funding your deals. Those sources could include Hard Money Lenders, Private Money Lenders, or even Seller Financing.
Now that JoAnna has gotten all of the permits that she needs, the majority of the work on this property will begin. The biggest project is converting the basement into living space. That started with her getting a variance on the property so she can have ceilings that are a little lower than code would typically allow.
Richmond, VA; Charlotte, NC
Terms used in this video:
- Egress Windows
- Jack and Jill Bathroom
- Interior French Drains; Footing Drain
- Hard Money Lender
Features mentioned in this video:
Key take aways:
- Check with local regulatory agencies when looking at finished basement heights.
- You can petition to get a variance that allows you to deviate from local code.
- Sometimes permits can be held up if you are applying for a variance, so plan ahead and work that into your holding cost estimates.
- Get creative with creating new features and living spaces in homes.
- Network with local government employees and inspectors, they may refer you to other properties in the area that they want improved in their communities.
- Code violation properties can be a great lead source.
- Hard money lenders are a great way to fund deals if you are unable to find a private lender for the project.
- Sometimes Private Lenders aren't able to fund deals when you get one under contract due to time constraints or availability of their funds.
- Always be networking for private money lenders.