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Grow op

invst4profit

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I am looking at a former grow op house for a reno/flip.
I know don`t do it.
I have researched plenty of info on why not to do it but find limited constructive info on how to do it.
I know there are tens of thousands of these buildings out there and I am certain many reno`s have been completed successfully.
My opinion is that with proper due diligence any project has potential with the right numbers.
So with that in mind can anyone direct me to sources of info in cyberspace that I can use to research and prepare my check list and outside professionals for a proper inspection.
 

Bill

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QUOTE (invst4profit @ Jun 21 2008, 07:43 AM) I am looking at a former grow op house for a reno/flip.
I know don`t do it.
I have researched plenty of info on why not to do it but find limited constructive info on how to do it.
I know there are tens of thousands of these buildings out there and I am certain many reno`s have been completed successfully.
My opinion is that with proper due diligence any project has potential with the right numbers.
So with that in mind can anyone direct me to sources of info in cyberspace that I can use to research and prepare my check list and outside professionals for a proper inspection.


Start by seeing if you can even get financing on the property. Most banks won`t finance a former grow op even after it has been remediated and renovated. This would limit you to all cash buyers.
 

invst4profit

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I need to find out if the present owner has had a Environmental Site Inspection compleated.
Usually after a bust the place is not allowed to be lived in until certain criteria has been meet and to my understanding the house is being lived in by a relative of the owner at this time.
The offer will be conditional on owner financing.
After we agree on a price I will negotiate terms.
As for resale I will confirm in advance that when renovated I can get bank financing and insurance coverage for future owners.
 

gullonsd

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QUOTE (invst4profit @ Jun 21 2008, 10:14 AM) I need to find out if the present owner has had a Environmental Site Inspection compleated.
Usually after a bust the place is not allowed to be lived in until certain criteria has been meet and to my understanding the house is being lived in by a relative of the owner at this time.
The offer will be conditional on owner financing.
After we agree on a price I will negotiate terms.
As for resale I will confirm in advance that when renovated I can get bank financing and insurance coverage for future owners.

My son is a mould and water remediationist and has passed on this.

The cost to truely renovate and remediate a "gro-op" can be very expensive. He suggests getting someone who is a specialist (certified) to review your plans and the site before you decide to put down your money. This may cost a few $ up front but worth every penny in the long run.

Remediationist can be found through places like FiberClean in Calgary as they have classes that teach many of their customers all the necessary procecures to do the clean up. Note that the most detrimental aspect of the "grow-op" is the mould and residual chemical contamination that can actually seep into the concrete and wood making it almost impossible to remove.

Hope this helps with your decision making.

Darla
 

invst4profit

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Yes thanks. At this point it boils down to estimating the costs up front in order to establish the offer so as to make the highest return. Due diligence is extremely important.
Once I know the costs and ARV I will know where to start as with any deal.
 

dplummer

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I am a mould & asbestos remediator. I also buy mould damage houses & flip them. A couple things to keep in mind:

Banks won`t finanace mould damage houses. I`ve had no problems in selling these homes after remediation & the purchaser getting finanacing.

The first thing you need is an enviromental consultant (Pinchin, Golder, etc.) to perform air & tape lift testing & write a remediation scope prior to the work being done.
Have a professional do the remediation. If your going to takle this yourself make sure to perform remediation under containment & negitive air.
After demo/cleanup according to Consultants scope have them back in to test again. We call it " clearance testing". Once your given the green light that you`ve been sucessfull at the remediation complete your repairs. The Pre & Post documentation by the Consultant is crucial in convincing a lender the property is clean/clear.

Just as a side note this type of service is provided to Mortgage Lenders prior to them selling a property as well.
Hope this helps.
Doug
 
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