Advice Needed on House w/ Cracked Foundation

Advice Needed on House w/ Cracked Foundation

I came across a wonderful property in a premier location that is in foreclosure today and went to view the property. The property is basically a brand new house where the builder went belly up and it is not completed. The exterior is complete and all the walls are studded out with finished sheetrock. All the plumbing is ran and the electric is ran, but no outlets or switches and no water fixtures. No kitchen. This house is in a very "well off" community where the average home goes for about $350,000. I spoke to the realtor today and the bank wants to unload this property this week, before winter. They have one offer just submitted last week and it is a real low ball offer and he said that submitting an offer around $100,000 would get the house. The main issue with the house is that the block foundation is severely cracked and needs repaired, probably around $30,000 according to the realtor. I am very unsure of getting involved with such a huge project so early in my investing career, but I am sure that it could make a big return. It also needs shingles on the roof and obviously all finished on the interior. I am thinking after doing the calculations that I could at least make some good money on the deal, but I am not sure I want to deal with the headache of foundation issues or the long timeline it may take. In addition, I am not sure anyone would finance it due to it being in mid-construction! Any advice would be welcomed......please!

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Nicole,

you are right to be cautious in your early years with a foundation cracked home. There are many reasons why it could have done this and some of them are really expensive fixes. I would certainly help you make that determination, but I am in Ohio and obviously cannot see the problem. You need the professional opinion of an experienced person in your hometown area. But you can always get the house under contract subject to a foundation inspection within 10 days. Once you know the costs, you can make a better decision.

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Bill, Thank you so much for

Bill,

Thank you so much for responding. I really do appreciate it. I have taken your advice and I submitted my offer this morning with the recommended 10 days for foundation. We will see what happens. As I was there, many more people were coming to view the property. I would love to wholesale the deal so I am hoping I have some daring buyers that are interested in a premier property with a little work or maybe a lot. I will keep you posted. I am in PA and glad to know you are my neighbor in Ohio. I look forward to staying connected with you and any other words of wisdom would be great!

Nicole


Foundation Issues

One thing I have done with cracked foundations that has been a very cost effective option without Huge effort. There is a procedure that can be done called "Epoxy Injecting" to sure and seal cracks in the cement. Contractors who work on concrete repairs can do this. Not all contractors are able to do this but basically what you do is drill holes to the sides of the crack on an angle so you can inject epoxy into the crack from the inside out. It is pricey to do but is quite a bit less than the conventional ways of repairing cracks. This method costs much less than the $30K that you are being quoted. Try searching for contractors in your area and ask them if they do this. They can give you quotes on fixing most cracks in a foundation and can save you quite a bit of money.
Happy Investing.


Foundation Problems

Hi, I have been in construction almost all of my life, so let me put my two cents in. The most important thing is to determine why the foundation cracked. The footing may not have been poured with the right density of concrete or they may not have put rebar in the footing that is sufficient to carry the weight of the structure. Any structural problem can be fixed but you have to know what you are getting into. On new construction you will run a risk of a foundation cracking or collapsing when you put the roof on new construction and don’t install the gutters and down spouts to carry the water away from the building. If you get a heavy rain and the water runs off the roof and down the side of the foundation wall it will it will create enough static pressure crack the wall and if the pressure is great enough it will punish the wall in and possibly collapse the structure. Another problem is after the footing and foundation is installed if there isn’t enough care taken when it is back fill the foundation can be damaged. I would look to see if the foundation is bulging into the structure if it is the structural problem was caused by static pressure from back fill or water. Good Luck!


Leland!

You are soooo right. You have to fix whatever caused the failure. Putting a band-aid on the problem is not the ethical thing to do! Fixing the cause and then fixing the problem the right way can be pretty expensive. Hire a structural engineer when in doubt! Never rely on a realtors structural repair estimate. Unless he can provide a written estimate from a contractor that is in accordance with the engineers report.

Michael Mangham
MD Home Acquisitions LLC

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Cracked Foundation

Dear Family First,Check for expansive soil's,site compaction density also call your local helical pier contractor to see if he or she can stabilize the footer or foundation. Yes you'll run into some expence however it still could payoff handsomely at this stage of construction.Rich

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Richard Haynes


Thank You All

Thank you all who have offered comments. It has been most helpful. My offer was accepted at the bank on this property and I am in the process of having a few different people come and look at the foundation this weekend. I will definitely fill you all in once I hear from them. Thanks again.


Thank you!

Your comments are very helpful. This is what I know and it seems to right on spot with what your saying. I have been told that the back wall of the house is bulging because it was backfilled too soon, but there are also no gutters or downspouts on the house and haven't been for 5 years. Could it be combination of both water and backfill issues? In your experience, what is the best way to fix something like this? I have heard to jack the house up and fix the wall and I have heard to build another wall next to it. I am just trying to get enough information to make a sound decision. Any idea on a range of cost associated? Thank you so much.


Get an Engineers advice

they will tell you what is causing the crack, and how to get it fixed; then get a contractor's estimate to do the work.

Sometimes cracks can be a sign of soil settlement; other times it can be caused by the loads on them... foundation cracks tend to scare off most people, but if you get a good deal on the house, it's worth buying and fixing it, or assign to an investor who has dealt with foundation problem houses....

Wishing you success,
Valerie

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Cracked Foundation

It's awesome to see that you are working your way through this process. As you learn and work at the same time, this will help you in the future when you encounter issues like this. you will be dubbed the new foundation expert on Dean's website where everyone goes to get their information. What did you find out to be the price to get his issue fixed? I'll be interested to see your number. I also want to echo the comments on how important it is to fix the problem rather than trying to cover it up. Gutter issues can cause major issues when by simply fixing the problem can end up being less expensive than future problems that not fixing it will cause. I have learned this rule of thumb through experience and repetition. So many people simply try to cover up problems and pass them on to the next person in line and that is just simply not the ethical way to conduct business. I'll be interested to see what you ended up doing with this deal. Keep in touch.

Happy Investing.

Matt W.


Definitely

Get a professional's advice. I think its awesome that you are tackling such a big project. Don't let anyone tell you you can't do it, because I bet whoever would tell you that, wouldn't wanna see you prove them wrong! Be careful and do your homework. Good luck! I want to know as well where this deal goes.

RENinja

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Cracked Foundation

From my many years of experience, I would say that you do have a combination of the early backfill and the moisture content of no rain gutters. I can’t see the amount of bulge that your wall has, but I would feel fairly confident to say…….remove the moisture content in the ground and I feel this would fix most of your issues. I have been inspecting homes for several years now and I think most people would be amazed at how much trouble water causes. In most cases, water can be easily diverted or taken away from the home and will solve a lot of water intrusion problem around a home.
If removing the moisture does not work, please get a second opinion from a qualified foundation professional.
Best of Luck for 2012

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