Mold Issue, What Steps To I Take?
I was given a lead on a great property. It's two condos, stacked on top of each other. Bird dog tells me it's through a realtor friend, not yet listed. Owner is in foreclosure and they negotiated from 80k down to 50k.
Comps on 1 unit go for 120k all fixed. Both units should be worth at least 200k. I'm told there is very little fix up needed. I'll take a look early next week, though it may go quick. One deal fell through due to no proof of funds.
However it was mentioned there is a slight mold problem. I've done a search on it and I read the main concern is if there was ever an insurance claim filed. How do I find this information out? Is there a seach service out there that can find out if there was such a claim?
I have no idea how to gauge how bad a mold problem is, when I see the place what do I look out for? How will I know if the mold has spread to the frame or if it's relatively easy?
They say earnest required is 2000k. Know, my cautious side is thinking 50k for 2 condos that should be worth 200k for little fix up is WAY too much of a bargain...especially if a realtor is involved. Anyone feel the same, that this is too good to be true? That the "slight" mold problem is probably a "major" problem?
Is there any way to structure a sales contract to protect me in this deal? Contingences of inspection, or anything like that? I've read a post saying a mold inspection is a waste of money due to no regulations set. What steps would you take in this type of deal??
I appreciate any help in this, I need to move quickly on this deal (aren't they all like that?=)
I don't want to lose out by being overly cautious...and I don't want to lose my shirt by being overly eager.
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