Grow ops
- Thread starter Cribs
- Start date
We bought the house from the Crown (government), so all the remediation work had been completed, as well as a full pre and post remediation inspection report - right down the measuring spore counts in the house. The pot growers were real dumb - bought the house, completely ignored the landscaping and had people coming and going day and night. They were shut down in less than 6 months from buying the house. So there was very little damage.
As I said, just the stigma of an ex grow op scared people away. The private buyers tried to get Genworth (?) mortgage insurance - I believe CMHC said no. But Genworth wanted a "re-occupancy permit" or they wouldn`t insure. The original occupancy permit was never removed, so there was no re-occupancy permit required. Although we tried to satisfy them - letters from the municipality, copy of the occupancy permit etc. etc., they would not take anything except a document that did not exist, and the buyers had to walk away.
It did sell - obviously the new buyers put the minimum down payment required not to need mortgage insurance. There are lenders that will give you a mortgage.
It is a shame these people who ruin the houses with their grow ops. But it is also a shame if there is little damage that there is such a difficulty in moving these houses. This is going to become a major problem in the future because there are only going to be more and more.
Kathi
As I said, just the stigma of an ex grow op scared people away. The private buyers tried to get Genworth (?) mortgage insurance - I believe CMHC said no. But Genworth wanted a "re-occupancy permit" or they wouldn`t insure. The original occupancy permit was never removed, so there was no re-occupancy permit required. Although we tried to satisfy them - letters from the municipality, copy of the occupancy permit etc. etc., they would not take anything except a document that did not exist, and the buyers had to walk away.
It did sell - obviously the new buyers put the minimum down payment required not to need mortgage insurance. There are lenders that will give you a mortgage.
It is a shame these people who ruin the houses with their grow ops. But it is also a shame if there is little damage that there is such a difficulty in moving these houses. This is going to become a major problem in the future because there are only going to be more and more.
Kathi
I am not 100% certain, but I believe a re-occupancy permit is required by most municipalities before anyone can legally occupy the ppty again. I am all but certain that is the case in most cities around Vancouver.
There are very hefty fees to get a re-occupancy permit in Vancouver. The authorities believe, rightly or wrongly, that the home owner is probably complicit in the establishment of the grow-op in the first place. As a renting landlord we do bear some responsibility to ensure that our ppty is not used for illegal purposes. One way to do that is to tell your prospective tenants that you inspect your properties monthly, and then DO IT. If a potential tenant has nefarious intent, they will be unlikely to expose themselves to a monthly inspection.
There are very hefty fees to get a re-occupancy permit in Vancouver. The authorities believe, rightly or wrongly, that the home owner is probably complicit in the establishment of the grow-op in the first place. As a renting landlord we do bear some responsibility to ensure that our ppty is not used for illegal purposes. One way to do that is to tell your prospective tenants that you inspect your properties monthly, and then DO IT. If a potential tenant has nefarious intent, they will be unlikely to expose themselves to a monthly inspection.
Thanks for all the great info here. Ultimately my buyer decided to walk away. Not because of health concerns, but it was so painfull to get a mortgage. I`m sure we could have gotten one, but I for one was worried about resale. The major banks won`t even consider them, and I can see this trend spreading in the future.
In Calgary, we have a website that shows all grow ops (2004 on). So any home will have that stigma and won`t be able to hide from it. Its hard to say what will happen in the future, but I think it will only be harder and harder to finance grow ops. This reduces their market value. I won`t be going near one of these again.
In Calgary, we have a website that shows all grow ops (2004 on). So any home will have that stigma and won`t be able to hide from it. Its hard to say what will happen in the future, but I think it will only be harder and harder to finance grow ops. This reduces their market value. I won`t be going near one of these again.
QUOTE (DaveRhydderch @ Oct 4 2010, 11:30 AM) Thanks for all the great info here. Ultimately my buyer decided to walk away. Not because of health concerns, but it was so painfull to get a mortgage. I`m sure we could have gotten one, but I for one was worried about resale. The major banks won`t even consider them, and I can see this trend spreading in the future.
In Calgary, we have a website that shows all grow ops (2004 on). So any home will have that stigma and won`t be able to hide from it. Its hard to say what will happen in the future, but I think it will only be harder and harder to finance grow ops. This reduces their market value. I won`t be going near one of these again.
For those who may not have been familiar with this resource its located here:
http://www.calgaryhealthregion.ca/publiche...llegal_drug.htm
Michael
In Calgary, we have a website that shows all grow ops (2004 on). So any home will have that stigma and won`t be able to hide from it. Its hard to say what will happen in the future, but I think it will only be harder and harder to finance grow ops. This reduces their market value. I won`t be going near one of these again.
For those who may not have been familiar with this resource its located here:
http://www.calgaryhealthregion.ca/publiche...llegal_drug.htm
Michael
QUOTE (dplummer @ Jul 4 2009, 07:08 AM) It depends on the extent & location of the growing within the home. Have the home tested by an Industrial Hygenist or Consultant that specializes in this field. I can provide you some names if you like. They will provide a scope for remediation. These types of homes can be cleaned with no ill effects down the road. Mould is part of our natural plant life & mould spores will enter/exit our homes every time a door or window is open.
Doug
I agreed with Doug. As long as Industrial Hygenist examined and the lab test results are good. Then there`s no problem. Mould you can find anywhere, garden, in the air or even in your house, which is not a GO house. Mould will grow in any humidity areas. If you have water leak in the wall for sometime, then there will be a chance of mould in it. Some mould is a good mould, which you can eat (mould on chese).
Doug
I agreed with Doug. As long as Industrial Hygenist examined and the lab test results are good. Then there`s no problem. Mould you can find anywhere, garden, in the air or even in your house, which is not a GO house. Mould will grow in any humidity areas. If you have water leak in the wall for sometime, then there will be a chance of mould in it. Some mould is a good mould, which you can eat (mould on chese).
QUOTE (DaveRhydderch @ Oct 4 2010, 10:30 AM) Thanks for all the great info here. Ultimately my buyer decided to walk away. Not because of health concerns, but it was so painfull to get a mortgage. I`m sure we could have gotten one, but I for one was worried about resale. The major banks won`t even consider them, and I can see this trend spreading in the future.
In Calgary, we have a website that shows all grow ops (2004 on). So any home will have that stigma and won`t be able to hide from it. Its hard to say what will happen in the future, but I think it will only be harder and harder to finance grow ops. This reduces their market value. I won`t be going near one of these again.
If you have all the document to proof the bank that the house is safe to live, i don`t see why not. eg, remediation report results, re-occupancy permit.
In Calgary, we have a website that shows all grow ops (2004 on). So any home will have that stigma and won`t be able to hide from it. Its hard to say what will happen in the future, but I think it will only be harder and harder to finance grow ops. This reduces their market value. I won`t be going near one of these again.
If you have all the document to proof the bank that the house is safe to live, i don`t see why not. eg, remediation report results, re-occupancy permit.
First of all, I have bookmarked the Calgary site listing the Grow Ops. Thank you, I never knew this site existed.
Second, yes you can buy a remediated grow op, but when it comes time to resell this home you will run into problems from your buyer`s bank and it will be hard to sell.
There are always other homes to buy. I would stay away.
Just my opinion.
Terry
Second, yes you can buy a remediated grow op, but when it comes time to resell this home you will run into problems from your buyer`s bank and it will be hard to sell.
There are always other homes to buy. I would stay away.
Just my opinion.
Terry
QUOTE (tnguyen @ Oct 22 2010, 04:06 PM) If you have all the document to proof the bank that the house is safe to live, i don`t see why not. eg, remediation report results, re-occupancy permit.
I agree. The banks don`t. Guess who`s opinion matters more?
I agree. The banks don`t. Guess who`s opinion matters more?
QUOTE (Cribs @ Jun 25 2009, 09:08 PM) I have a situation that I would like to get some input on.
I have put an offer on a property which was accepted. After acceptance of the offer I found out that the property was once a grow op and was shut down in Feb/08. Have received a copy of the Capital Health effectively clearing the property as fit for human habitation dated in August 2008. I am have much difficulty in finding a mortgage on this property. Anyone have any suggestions as to who or what company may be approachable?
Thanks in advance for your input.
Speak to Jas Grewal from the Calum Ross Mortgage team. He has done 2 grow op deals www.calumross.com
I have put an offer on a property which was accepted. After acceptance of the offer I found out that the property was once a grow op and was shut down in Feb/08. Have received a copy of the Capital Health effectively clearing the property as fit for human habitation dated in August 2008. I am have much difficulty in finding a mortgage on this property. Anyone have any suggestions as to who or what company may be approachable?
Thanks in advance for your input.
Speak to Jas Grewal from the Calum Ross Mortgage team. He has done 2 grow op deals www.calumross.com
QUOTE (TerryKruse @ Oct 24 2010, 08:41 AM)
First of all, I have bookmarked the Calgary site listing the Grow Ops. Thank you, I never knew this site existed.
You're welcome.
To the OP: if you didn't know that it was originally a grow-op, then you didn't get a big enough discount. You'll have to disclose that to any buyer, and the stigma will attach to the property forever, even once remediated. If you're still considering making this part of your portfolio, you want to be very sure, as it will be difficult to re-sell this property.
Michael
First of all, I have bookmarked the Calgary site listing the Grow Ops. Thank you, I never knew this site existed.
You're welcome.
To the OP: if you didn't know that it was originally a grow-op, then you didn't get a big enough discount. You'll have to disclose that to any buyer, and the stigma will attach to the property forever, even once remediated. If you're still considering making this part of your portfolio, you want to be very sure, as it will be difficult to re-sell this property.
Michael