Plan and Envision

For some rehabbers, the dirt has to be removed before the plan can be made.  The space has to be felt.  The home has to talk to the owner.  

For other rehabbers, the record of baby steps is important so they don't lose their vision.  Progress can seem very slow. 

In the house from the previous post, the property is condemned and requires a code compliance inspection from the city. The expected list of required repairs includes:

• Upgrade electrical service from 60 amp fuses to 100 amp circuit breakers which includes a new mast and box
  
• Install GFCI outlets within 6 feet of a water source
• Install grounded outlets as needed
• Add outlets to meet today's code requirements
• Clear the sewer line to the street
• Upgrade plumbing to today's code which will include larger water pipes (1/4" supplies the kitchen sink), new traps, new faucets, replacement of any leaking pipes, and a new water meter (the old one froze)
• New water heater
• New furnace and possible duct replacement because of rust in the runs
• New windows
• New entry doors
• New deadbolt locks as the old one do not have a thumb latch, but are double keyed
• New lavatory sink (old one is cracked)
• New kitchen sink and faucet (old one is permanently stained and gross)
• New kitchen and lavatory faucets
• New 1.5-2 gallon flush toilet as the temporary one is a 5 gallon flush
• Possibly a new tub
• Scrape and paint the outside
• Rake and maintain the outside lawn
• New tub surround and walls in bathroom
• New stove
• New kitchen countertop (old one is linoleum)
• New kitchen flooring
• Finish the wood floors or replace the carpet
• Remove kitchen wallpaper and finish the walls (if they are not done before the code compliance)
• Replace the laundry tub and faucet

Removal of the debris was necessary for the city to come through for their code compliance inspection.  Nothing has been done in the house yet that requires a permit with the exception of replacing the toilet.  Since the toilet will have to be removed to replace the bath flooring and walls, it will be covered by permit at that time.  The preparation seen in the pictures below help the city to more clearly see what needs to be done without coming back a second time.   Besides which, the pictures help the rehabber to see that progress truly is being made.

 

Cleaned and primed bedroom walls.

 

  

 

 Clean but stained kitchen sink.  A bottle of commercial liquid soap stained the left sink bowl as it sat for years.  The sink will be replaced.

 

What a difference some elbow grease and cleaning product can make.

 

 Tub may be salvaged if the interior cleans as well as the exterior.  The stained flooring will be replaced after code compliance inspection.  The new toilet was necessary for workers to use.

 

At this stage, others can now see the potential for this little home.  The distraction of dirt and clutter are now gone.  It's soon time for the code compliance inspection.  After that the visionary will get to work! 

So You Want to Be a Rehabber

Subtitled:  Do You Really Have What It Takes to Do the Zero Down Infomercial Programs?

If you want to be a rehabber and make some "easy" and quick money when you grow up, let me show you what the infomercials don't tell you!  The following series of pictures was taken from a house with good bones that could be purchased very cheaply to make a killing on resale.  But, do YOU really want to go here?  Do you have the stomach for it?  The photos on the left were taken before 2000+ pounds of debris was scooped by shovel from the house.  This is the first step.  The second step is to get close enough to the stove, toilet, and other fixtures to remove them without becoming contaminated or throwing up.

                  BEFORE DEBRIS REMOVAL                                                        AFTER DEBRIS REMOVAL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And last, but not least.  I dare you to remove that toilet so a new one can be installed!

 

 

 

 

 

 

 

 

 

 

 

This house is not the standard, but if one can look beyond the debris to the house's potential finished state, there is money to be made here.  My mantra is  "The uglier, the better".  Because the seller doesn't want to deal with all that gross stuff the home will usually sell at a greatly reduced price.  A 40 yard box and strong muscles can deal with the worst of the mess, leaving the rehabber free to plan and envision. 

Vacant Buildings in St. Paul

Only a few times in my life have I gotten riled up enough to attend a public hearing about an ordinance change.  This week has joined one of those occasions.  One of the council members for the city of St. Paul has proposed a change to the city's current vacant housing ordinance.  A change that I believe is going to really hurt the housing climate in St. Paul.

St. Paul currently requires vacant buildings to be registered with the City.  There is an annual fee assessed if your house gets on the vacant building list.  Two levels of vacant buildings are defined, one is "condemned" and needs a code compliance to be habitable again.   This code compliance requires a $5000 bond to even get the city inspectors out to determine what has to be done to upgrade the home.

I like to give people the benefit of the doubt, so my assumption is that this vacant building ordinance was designed to help the City identify problem properties or those likely to become so.  An effort is being made to keep the housing in good repair by the vacant building regulation.

The new proposal would modify the vacant building ordinance to require a certificate of occupancy or compliance be issued by the City before the title can be transferred.  My mind always goes to practical application.  Now this year, in our area, we are experiencing one of the highest markets of foreclosed and vacant properties ever.  These homes have been abandoned by their former owners and taken over by lending companies who know nothing about property management and many times nothing about the effect of cold on St. Paul houses.  Many of these properties are landing on the registered vacant buildings list.  With the new proposal, the banks are stuck with the houses unless they jump through the hoops the City of St. Paul requires for the house to be given a certificate of occupancy or compliance.  

Does it make sense that lenders who have already lost thousands of dollars would pour thousands of dollars back into a house to get that prized certificate?  It doesn't make sense to me.  If I was the lender, I wouldn't put money into fixing a house that may or may not sell in the future.  Not to mention that lenders don't know the first thing about fixing a house for resale.

The traditional home buyer cannot get a mortgage on a house that is not considered "compliant" by the City or does not have a certificate of occupancy.  The "rehabber" who has funding sources to buy these vacant buildings, won't be able to buy the homes either because the title cannot transfer until the repairs are done to meet the City criteria.  It seems like a lose/lose scenario to me. 

What is going to happen to these vacant buildings that can't be sold?  Rehabbers will move on to other projects that are not vacant, but the banks will be stuck.  The houses will continue to be open to vandalism, copper theft, squatting, and crime.  The more time vacant with no new owner to love the houses will make the vacant buildings deteriorate.  

I just don't get why the council is even considering such a change.  It's a complete mystery to me.

In the event you want to attend the public hearing, it's Wednesday, February 20, at 5:30 PM on the third floor of City Hall at 15 West Kellogg, St. Paul, Minnesota.

The Minnesota Blogging Crown Has Passed to Another

It happened very quietly, almost surreptitiously, but I noticed that the Minnesota blogging crown has now passed to a new owner.  The Minnesota Blog Queen has been displaced by a new face, one who very much deserves the honor.  Teri Eckholm of Anoka, Minnesota, Halloween Capital of the World and NOT St. Paul (we'll forgive her for all of that!) has come from behind with a slow and steady tortoise like pace to earn the first place position in Minnesota on Active Rain.  Out of 1075 Active Rain bloggers in Minnesota, Teri is number 1!

 

Congratulations, Teri!  Don't think we old "has-beens" didn't notice!

 

 

Webkinz Distractions

Hi!  My name is Ducky.  I've been sitting patiently waiting for my friend Bonnie to get done with her real estate paperwork.  She works and works and works.  She sells real estate and when she goes away from our St. Paul office, I really think she's having a good time.  She always comes back in a good mood, but she also always has lots of work to do at her desk when she gets back.  I usually sit up here and just watch her.  All those papers and all those notes and all that computer work along with phone calls.  It makes me tired just watching.  Today is Friday, though, and some bloggers think Fridays are for fun.  Maybe I can get her to stop for the night. . . .

 

 

 

 

 

Yoo, hoo.  Oh, Bonnie.  Let's play.  Can't you take just a minute and log in and come play with me?  Just a few minutes.  I really am getting lonely in here.  Hey, remember me?  Put away those files.  Let's go play golf!

 

 

 

 

 

 

Okay.  Drastic times call for drastic measures.  Did you hear me!!!!!  It's time to stop for the night!  Helloooooooo!!!!     I'm not moving from this spot until you come play with me!

Realistic St. Paul Area Sellers

There's a change in the wind.  Have we heard that before?  I think so.  We've heard so much about the change in the St. Paul real estate market that we're sick of it, but finally it seems that sellers in the St. Paul area are getting the message.  More and more of my sellers are willing to reduce their prices.  More and more are hearing the message, "You've got to be the prettiest house and the lowest priced in your area in order to sell."  Too many listings means too much competition and too few sales.

Signs of the change:

• A friend who's listed out of my market area called asking for advice.  Her agent suggested a 20% discount from her first list price.  She wasn't getting showings.  Her house is well kept but not really considered within the metro area which narrows the buyer pool.  "Twenty percent!" bemoaned my friend.  All I could do was sympathize and point out the reality of the market.  If only 25% of the house listings are selling, your house has to have something to make it stand out.  That usually means it has to be the best value for the dollar.  Her agent is experienced in her neighborhood.  She knows what she is doing.  How much will it cost you to keep two households through the winter?  What about the dangers of vandalism and damage from an untended house?  What about the cost?  Sometimes it's better to cut your losses and sell while you can.
• An investor recently cut his list price to well below his break even point.  Reality for him is that holding costs cost!  Selling at a reduction reduces his inventory and allows him to move on to the next project even if he loses money on this one.
• A buyer just contracted for completed new construction with an 11% reduction in price!  In the St. Paul market, that kind of reduction on new construction is shocking.  Contractor concessions previously amounted to closing costs or an appliance allowance which was usually not more than 3% of the list price.
• Another seller remodeled his house to convert it back to a single family home.  The remodel was so attractive, he decided not to sell!
• Short sales are popping up all over.  The time lag from presentation of offer to acceptance by the committee is atrocious, but for the buyers willing and able to wait, the prices make sense.
• Attendants at new construction open houses are no longer shutting out the buyer's agent from their commissions because the agent was not present at first contact.  Many of these attendants are calling to inform us that our clients were through and they would be more than happy to compensate us for a completed transaction.
• E-mails are arriving from builders offering a hefty commission to buyer's agents.

All of these changes are the result of too much inventory.  Buyers who are aware should buy now!  There is a change in the wind that's favorable to buyers! 

 

Two Milestones at Once

I joined the official Active Rain Bronze Star Hall of Fame and then removed my name when I read the directions.  When all else fails read the directions.  I had to be invited to join the Active Rain Bronze Star Hall of Fame.  I felt like the disciples when Jesus warned them not to take a seat of honor at the head of the table unless you've been invited.  Imagine how embarrassing it would be to be asked to move to a lower position!  No one asked me to leave, but I figured I'd high-tail it out of the group before someone did!  It wasn't to much to wait until someone did invite me to join.  Obviously, they hadn't noticed my milestone some 49,000 points ago.  My faux pas was disclosed to Neal the Real Deal Bloom and I was reassured that he was just too busy to make invitations anymore!  So, I'll join once again with a clear conscience.

 

Much to my surprise the same evening one of my invitees added some points to my total and over the 100,000 point mark I jumped.  Neal assured me I was invited to the silver club as well.  Exclusive though it may be, I've joined others in their quest for notoriety.  Is T there?  Are Jay and Boomer?  Both Minnesota bloggers have exceeded 100,000 points well before me.  Are they, too, unaware of the Halls of Fame?  I think I'll send them a message just to make sure.

The trek here has been a strange one at best.  Real Talk had been my network until Maureen McCabe invited me to Active Rain.  I resisted the invitation at first, but found so many familiar faces and some of the greats from RT.  It was an easy slide sideways to network in a new forum.  Plus, here we could see what our internet friends looked like.  Not to mention the points, and the addiction, and the playground, and the professional challenge.  So much information was being shared.  It was better than the water cooler any day.

So, my addiction set in and I played and played.  As commonly happens in groups, bullies appeared with their own agendas.  The Rain was showing some fiery breath among members.  Some became disenchanted.  Some left to suffer withdrawal pangs in other climes.  Most stayed on and continued to thrive.  Like all families there were rough roads and easy paths.  Active Rain was growing up and becoming a force of its own.

Today I celebrate two milestones in points.  Points that really are useless to me except as they symbolize the good times shared with a network of fine professionals.  I don't win a prize.  I don't get any money.  The stars are virtual, but the information shared is priceless. 

Active Rain Groups

Groups come in all shapes and sizes.  Inanimate objects sometimes are grouped.  Animals sometimes are grouped.  People sometimes are grouped. Grouping is the basis for many sciences including math, biology, medicine, physics, and others.  Actually, grouping is so common, we often don't realize we are doing it. 

Grouping is the basis for comraderie, but also for prejudice.  Grouping can bring people together around a common good, but also separate them as a result of stereotype.  Grouping can strengthen and sometimes weaken.

Active Rain Groups hopefully fall in the category of building comraderie, creating a common good, and strengthening.  Have you checked the Active Rain groups?  I did today for the first time in months.  At this posting there are 1,907 different groups on Active Rain.  Seventy-seven pages of groups.  There are a few that appear to be duplicates in their focus, but almost 2000 groups is amazing.  

If you haven't scrolled through the pages of groups to see if you identify with a group's focus, you might want to take a few hours to do so.  Some of the names that caught my eye were the following: 

• REALTORS®   - Is it a surprise that this is the group with the most subscribers:  4,253 at this writing!
• Active Rain Newbies - Everyone has to start somewhere.  You might even find members of the 100,000 points club in this group.  Afterall, 100,000 points starts with just 25 for a comment or 200 for a post!
• Stage It Forward - There are tons of staging groups but this one caught my eye only because Craig Schiller is sooooo beautiful! 
• Listings by Address - Another marketing tool, maybe?
• Meme's - How I dread meme's, however, they're a great tool for getting to know one another.
• Millionaire Real Estate Agent Book Club - Oh, my.  I still haven't drank the kool-aid or finished the book.  What I have read is helpful, but I never dreamed of a whole club on the topic!  Besides I can't even spell millionaire without thinking hard!
  
• Point 2 Agent Sites - I've got two but didn't realize Active Rain had a group for them!
• Carnival of Content - I've never entered a carnival of my own free will.  Only when Teresa made me!
  

The list is groups that struck me in just the first few pages when sorted by number of subscribers.  Imagine what awaits deeper inside.  There were groups with brokerage names, focus on marketing, investing, house flipping, thinking out of the box, spiritual groups, encouragement, comedy, sexual orientation, bad things agents experience, etc.  It's a whole new world out there.   Plus, if you choose, you can sign up for the RSS feed for the group of your choice and  not have to sort through all the other posts to find the ones of interest.

OFF MARKET - 564 Sims Avenue, St. Paul, Minnesota - OFF MARKET

OFF MARKET This lovely St. Paul home is centrally located near Hamline University, but easily accessible to many other St. Paul colleges including St. Thomas, St. Catherine's, Augsburg, the University of Minnesota, Macalaster and others. Public transportation and shopping are only two blocks away with access to the freeway system just blocks beyond that. Former owners gently used the house and retained the original woodwork, built-in buffet, wood columns, and stained glass for the enjoyment of future residents. Check out the virtual tour details to see if this home will be your next home!

11397 Red Fox Dr., Maple Grove, Minnesota SOLD

Once upon a time there was a lovely townhouse sitting amongst the green of its grassy slice of pie. The lovely Maple Grove townhouse was filled with memories of happy family days having sheltered only one owner through times of joy and times of sadness, infancies and graduations, comings and goings. The lovely townhome had been loved and cared for throughout her life.

But a new era approached for the lovely townhome and it feared lovely would change to lonely. Its only owners were moving on in their lives and the lovely townhome could not join them. Whatever would she do? Lonely was not what she wanted. She wanted to once again shelter a family, provide an anchor for memories of little ones and grown ones, of gatherings that required her space.

"Ah," thought the lovely townhouse. "I shall proclaim to the world the wonders of my home, Red Fox Cove!"

And thus, the not to be lonely townhouse whispered in the real estate agent's ear, "There's a pool down the street all lovely and blue with inviting clean water heated just right. Across from the pool is the walking path to the lake with a fishing pier, canoe storage, and a big fire ring for toasting hot dogs and marshmallows on cool fall days."

Drawing herself up ever so straight, the lovely townhome continued, "People live a long time in our friendly townhouses because they all own us. No renters allowed. But puppies and kittens are welcome to play."

"I don't know much about these money things that seem so important to the people who live here, but they say the association takes care of all the fun stuff for just $66.00 a month."

"Oh, and don't forget the great biking paths just blocks away. I've not been there, but the family has come back bubbly every time they've gone that way. I guess there's a park . . . Eagle Lake, I think, and there's lots of biking and hiking paths for adventurous types. Even golf they say, although chasing a ball with a flat headed stick makes little sense to me!"

"Will you find a new family for me?" she asks the agent. "Lonely I don't want to be!"

Courtesy of Real Estate Snippets.