verbatim 1 Report post Posted July 29, 2010 So I was scheduled to go to closing next week on a flip of a little 2 bedroom home, nothing major. Less than 5k was to be made, but we all need gas money right? I get a call from the neighbor telling me that there's a quarantine sticker on the door with a phone # to call. The detective tells me people were sneaking in cooking meth at night and leaving in the morning. The fee to have it inspected and taken off quarantine is between 2500- 10,000. Now the little old lady selling the home doesn't have that. No investor will pay that, thus the house will just sit vacant. Does that really make sense to the city? The city will eventually take it over after years of vacancy, I guess? Obviously this is not the best neighborhood but I was LITERALLY going to sign a contract on it 2 hours before receiving this news, so somebody wanted the home. Is there no way around this? I mean it's just a little meth...right? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 29, 2010 Wow. Can't say I've ever dealt with a meth lab, verb. I think that once a property has been found to be one, there are state specific requirements on how the property needs to be decontaminated. For example, here is how Colorado handles it.Fortunately, you didn't close on it so it isn't your headache. Share this post Link to post Share on other sites
verbatim 1 Report post Posted July 29, 2010 I feel so bad for the old lady and her daughter who own it though. Not only are they extremely nice, i'm sure they were looking forward to the money from the sale. But you're right, at least it's not my house! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 29, 2010 I sympathize with the owner, also. They've got a real headache to deal with now. Share this post Link to post Share on other sites
verbatim 1 Report post Posted August 17, 2010 Meth lab update: I currently have a property under contract that I am flipping to another investor. The day we were to sign the contract I was informed by a neighbor of the property that 3 individuals were arrested for cooking Meth in the home & it is currently under quarantine until it is cleaned & inspected. Police say a lien will be put on the home preventing it from being sold until the quarantine is removed, but as of yet I have seen no lien. It will cost $5,000 to sanitize the home and have quarantine removed. I told the investor that I will just reduce his purchase price by $5,000 & he can pay to have the home cleaned. He will come to closing with the same amount of money, it just gets distributed differently. I also told him about the possible lien, which may force us to structure the deal creatively so he pays the $5000 and not the current owner, and still gets the deed. The investor does not want to pay $5,000 to have a property cleaned that he does not own which makes sense. He also does not want to buy a home under quarantine indefinitely. Because of this I have told him that before closing he can sign an contract with the contractors to do repairs for $5,000 to guarantee that price. What's the simplest way to structure the deal so the investor is guaranteed ownership in the property after he pays for the cleaning if in fact the deed cannot be transferred until after the quarantine lien is removed? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted August 17, 2010 The simplest and safest way is to have an attorney draw up a simple addendum to the contract stating what it is that you want done to protect all parties. This is certainly not your everyday, run of the mill deal. . .unless you specialize in quarantined meth homes. Share this post Link to post Share on other sites
