@@MeetKevin you dont need rebar. It depends on the soil. I use to pour thousands of yards of concrete and most the time with no rebar. Just depends. You sound so surprised to hear no rebar in a foundation.
Run away and retract the offer.Total money pit yikes.Good luck Kevin.Another great video and the lesson learned is always get an inspection before offering to buy a property.
Sounds like it would be more profitable to demolish and build a new house depending on home value vurses build cost, I personally would back out. After I woke up, I had a thought I dont remeber the name but maybe contact the people who do the 3D printed houses and see if they can do a deal with you to build a new house and possibly save the new roof, but truthfully they may not help. Although they may be interested in useing the land as a possible test area for conditions for there printed house.
The area might be a expensive area and even with the money put into the foundation and a retaining wall, this could still be a excellent southern California investment.
As a real estate investor myself I would be so nervous owning this property but I'm sure you'll be able to turn it into something great like you always do!
I have bought salvage title cars. As long as the price is right, and you plan to keep it for a long time, it can work out. Want to be green? Buy a savage title vehicle!
@Mouseythegreat the cars worth was probably worth a little that replacing the interior such as airbags, electrical components, seats was going to cost more to replace than junking the car.
The entire video, I had the thought that you had already purchased the house. Nice to hear that you had it inspected for issues before purchasing it. Sounds like a lot of very complicated issues with it.
Experienced investors and perform the due diligence on the numbers; that is why they differ to a seasoned inspector for property condition. The inspector differs to a contractor to get a cost estimate.
Thanks for the GREAT insight! I try to inspect before I buy , but, a lil risk sometimes overtakes me. The 6 million dollar man has a higher level of risk then I. Chester pa.19013. average cost of house 30k .rents are plus or minus $850...Most investors shun Chester. I LOVE IT! More for me! Chester the Invester!
@@David-sq2en Non-expert here: I suspect if this house was being built from scratch test holes would be dug and a plan would get put together by an engineer and geologist that involved some kind of piles. Maybe screw piles, maybe hammered in piles, or maybe just a regular foundation but deeper reinforced with rebar. The video makes it look like some kind of serious retaining walls might be required as well. But I suspect it might economically feasible to fix this house. Especially if the owner just gave it to you.
@@richardbrobeck2384 There's some sadness to this story. Somebody did what looked like some quality work or at least he a good amount of effort to renovate this house, but it turned out badly for him and it looks like he didn't have the knowledge to deal with the problems in a property like this and he didn't have the knowledge to know that he didn't have the knowledge.
Considering the absurd amount of work this house needs, I would be interested to hear about your thoughts on new constructions for rental properties. Is it viable to build new? Would a duplex work or even a multi unit?
@@mattd916 Also you don't have the benefits of being a private investor, who is able to pay more then anyone else but the home buyers. Instead you compete against big investors with construction partners and better prices, because of following contracts. Also big investors could use the same construction plans over and over again and cut their cost for architects to a minimum.
I’m wondering if building a 4500 square foot from the ground up on that lot would be the best roi. I guess it depends on the comps. I’m so looking forward to this series. I’ve been wanting to do something similar in one of the canyons around LA. Keep up the great work and content. You’re winning!
As a structural engineer I find it frustrating that the value of a property is driven by cosmetic finishes. In other parts of the world the value of a property is heavily dependent on occupant life safety. As a result, new structures in those areas are continually innovating their engineering and construction methods... We’re here waiting on the new flooring and cabinet trend while still pumping out new homes with same framing methods we’ve been using for decades. This needs to change or we will continue to fall behind with our infrastructure.
With 2 Acres, you'd probably be better off tearing down, splitting the lot in like 4 and developing multiple houses. The whole lot looks like it would need some reengineering anyway for water, drainage, and soil erosion. Might as well go big.
Was thinking the same. He has limited time to back out though. There are real good inexpensive fixes for foundation and hillside. It's not that bad. I'm surprised Kevin was shocked that there was no rebar. He claims he was a contractor before. It's weird that he doesn't know most homes from 50's and earlier don't have rebar. I thought he bought some older homes before. I'm guessing if bank drops the price it'll be a 50k to 75k price cut. He's disclosed too much damaging info for it to be relisted at the same price and now they must disclose everything he's found. Not sure if he can max out the garage as an ADU with the original house size since he's looking for an additional garage from tuff shed.
The old house went through earthquakes, because it lacks rebar and footings large cracks ensued. The texture of the soil is a huge consideration for differential foundation movement. You forgot to ask if this is an on-going problem and if underpinning the foundation would arrest the problem. I do not have much faith in a young inspector with no gray hair since he lack the needed experience to make an $80k determination. You have to be able to explain away the negative on the foundation when you sell.
Wow, I could have that entire house jacked up and a whole new foundation poured for less than half what your guy quoted, but seriously that house does not need a new foundation unless you plan to move it (which you should consider if actually doing the foundation). That foundation can be cheaply repaired with structural mortar and by driving rebar into the existing structure and wrapping it all with mesh.
Pull up subfloor (don't trash it), dig under pad to level with jacks, use hydraulic cement to fill cracks, replace same subfloor. Get additional permit for retaining wall, (concrete/rebar at angle into slope w/ large footing). Dig relief ditches for runoff. Open permit means get the best inspector possible because nothing is permanent on the property yet.
Have you even purchased yet because I’d not A) either get the deal so cheap it’d be dumb not to do it. B) Leave the deal and run for the hills C) change your title cause misleading
Kevin needs to watch Homestead rescue to see how they deal with flooding on sloped lots. They made a really nice water diversion system that would help here.
CraveThatCoin I know right?! The family sold the property of behalf of the owner who was a gold miner, apparently he used mercury to separate the gold and soil materials and dropped a ton of it in the house. We tested during inspection and it tested positive in two parts of the home. So the sellers family paid for mercury clean up in escrow and I had to include that in my disclosures lol. Apparently it’s not as expensive as you’d think. It ran them around $1,500.
@@SteveRam ah I see that makes sense now. Yes that is certainly right as mercury has a history of use with gold mining. He must have harmed his health dealing with mercury like that. I've dealt with asbestos, lead but not yet mercury
I learnt so much from this video wow. This is a gem content you giving up for free Kevin. Thank you so much from all of aspiring to own real estate in the future.
I'm new in the business and your videos are a lot of help, I check websites like Realtor, Trulia and zumbly and usually find properties that are cheap. Thank you for your videos!
Plus side is this easily gives you more content to post about and is a story that many will want to continue hearing about whether they are new to the channel or not.
If there was no house, what would the land be valued at? Is it more of a tear down, sit on the property, sell to another buyer looking to build? Depends on the water table there right?
Cons: Foundation issues, septic issues, lot/permit issues, and cosmetic issues. Pros: Watching Kevin pound out a couple dozen videos on this property, earning money on TH-cam to offset the cost of repairs. Good luck, my friend, and keep us posted. That's cash in your pocket!
Hi Kevin. Great content tremendous value I realize the other morning you were recording a video at 2 AM and often wondered with someone else with kids and family life how do you manage to work full time and still manage to produce the stellar content and valuable courses (yes, I have a promo code) :-) Maybe a day in the life video including family life?
We all make mistakes. I once bought a condo near a power station that was making me sick from the EMF radiation. Ironically, the electrical bill in winter was $600/mo. The structure was block without sheetrock and insulation. I sold it within 2 months.
I gave myself a little laugh right at 13:55 when he paused before giving the price for the foundation work. While he was pausing, I thought to myself: Hmmmm..... 80 thousand?"
Don't buy unless you're certain of the exact cause of settlement (like a specific water leak that has been fixed). Even a new foundation won't solve the problem if the soil itself is still moving. Foundations are not designed like beams, in most instances even when built properly they're really designed to bear uniformly on the soil, not to span over it. A new foundation might very well have problems over time, too.
As a former realtor myself I always tell my customers about inspections including soil tests. If any of them come back that are not correctable the buyer can cancel the contract and the Seller must return the deposit. Its buyer beware!!!
Dang, I was really looking forward to watching his upcoming vids on the remodeling of this house. But holy moly it has problems ! I was throwing in the towel at like the 5 minute mark ! .... Wondering what the solution would be with that quick clip of mold in the ceiling of that bathroom. I mean do you just sand it down, bleach the crap out of it, and primer/paint it ? Or do you have to make a hole in the ceiling and inspect inside/above it to make sure it's not in other places?
So I have some questions Kevin. Did you leave any contingencies in your contract or did you buy it “as is”. Have you checked to see if the house is in a flood zone or do they have those maps available in That part of California? Have you talked to the neighbors about the history of the house?
Glad I'm out of that mess of a state. Got my 1st home for 100k this year in .75. Septic issues but we self fixed. $2000 gotta finish cosmetics and flip it. :)
One thing I’ve noticed about Real Estate when it comes to getting a deal and the way things are priced for sale. It seems as though no matter how bad of shape the house is in they find out what the house would be worth in good condition and then subtract the cost it would take to get it there and that’s the sales price so you almost never get a deal but it becomes a deal over time.
Would you counter off based on the price of the newly discover repairs? The rule I use is a property is worth 80% of after repair value minus cost of repairs.
C'mon guys, this is a replacement dwelling situation here, there is nothing left to save. Throw those timbers on the fire and start again! Build a 21st Century house that is fit for purpose. I imagine it will have some form of ability to let any flood water through the building ie a raised ground floor. Build something bold design wise and that will be the way to add value. People do this in the UK where I am from a lot. Also we use piled foundations to get to stable ground. There is nothing very difficult about it so long as the money stacks up, however you are probably looking at a big retaining wall of concrete too.
There are ways to build a foundation to compensate for this and *none* of them were done. It's literally the "how not to." Foundation was assembled as multiple separate chunks using a method that had no rebar combined the worst possible design geometry for the terrain it's been put in. The septic system is insult to injury for the plot at that point. That is a property where you're stuck demolishing the house and starting over. I'd almost say just turn that garage into a guest house and sell the house as a fixer-upper. However, it might could be salvaged without a full-reboot. That would require patching the foundation, expanding the perimeter of the foundation with the proper geometry, and leveling the floors. Ideally, some parts should be opened up to add some reinforcement, but it might not be necessary with good foundation geometry. I'm not an expert. This is just some stuff I've picked up over the years in Mississippi, where foundation issues are rampant.
You should ask the foundation guy the time scale these cracks are happening. Thus, if you did the cosmetic repair on the foundation, how many years would it take to arrive at the current state. Would repeated repairs be cost effective? A second option is to tear-down the house and sell the land as unimproved. A civil engineer or architect might be interested in a bargain-price piece of property at that location and have the technical knowledge to tackle the water problems.
Wow, crazy to think people buy homes without these inspections. I’m not all that familiar with foundations, but what’s the advantage of just pouring a newer/better foundations versus using a pillar/crawl space type foundation that would rely on the more stable bedrock versus the unstable soil? Just curious.
I've run into a LOT of foundation issues in our area, most of the houses are pre-1950's and some of them just have a few layers of brick for foundations (a few don't have a foundation at all!) To be honest, it would probably be cheaper to tear it down and have a new home built (with a proper foundation and drainage system), but I also understand wanting to preserve history, so...I guess it all depends on how much you want to spend.
@francesco deminelli Good point. I just mentioned that because they commented the foundation might be from the 50's or so, but with the additions and it being stripped, not much left in the way of history on this place anyway.
The video itself was a good video. it was a teaching lesson to always get an inspection. in some areas the real estate market is so hot that sometimes to close a deal you have to say no inspection
I got it! Make it into a "What not to buy MUSEUM"! Hang signs with arrows showing all the problems. Sell tickets, have a tour guide. Have a food truck too.
So, Kevin, it's Aug. , 2020, did you buy this property? I like your video's on properties and houses, etc. They're very informative and I've learned a lot watching them. Thanks
@meetkevin I'm going through something similar. Not on quicksand or foundation but everything else and I already own the property. The inspector missed a bunch of stuff. Needless to say he will never be used again.
Just some advice from experience and working reading water meters for years...please use something other than your finger to open water meter cams. Black widows love to hide inside meter cams and hang out around the opening because that is the way good normally comes in. So I you stick your finger into the hole you can get bit.....that would NOT be good! Btw love watching your channels 😃
Demo it down to one wall, pour a new foundation and rebuild a new house and call it a renovation legal under California building code. The other option is to walk away.
i think we have similar code in nh one old restaurant closed down new owners ripped everything down except 2 walls than rebuilt found it funny at the time making sense
Even if an investor is handy or has construction experience, nobody has ‘all’ of the knowledge needed to find and price every issue that might be present. This occurred to me as your foundation guy shared the slope measurements from the out of level floors and knew about the lack of steel in the concrete. And that is just one example of many issues... thank you for sharing.
This is the second house you found like this. While its good education for all of us, I feel like you are trying too hard to buy something when time is just not right.
@@Phctn That's because he makes one million edits every video and splices them altogether in one rambling non-stop video. His editing is horrible. Kevin seems to understand videography way better.
Kevin: I just accidentally bought a house built on quicksand... Also Kevin: This sucks... I honestly don't know if I can go through with this purchase. Lol
Dude I worked for RamJack. Like, I did the actually fixing the foundation work and I can tell you that foundation is EVERYTHING when it comes to a house... i think you’d agree considering it’s the most expensive thing to fix... and this house is going to be crazy expensive to fix just on the foundation alone. Yikes man!
This one is very easy to spot though. Once you see the cracks and slopes around the house and i wouldnt even put an offer on it. Thank you for sharing the experience though, very informative.
you said foundation is the most expensive. is that in the event that a house is already built on a foundation and having to repair it? or does that also apply to creating a brand new foundation on an empty lot which there is not yet a house built on?
I'm not sure if my question is forcing you to give anything away with upcoming videos, but is it possible to turn a profit with all you seem to have to do with this house?
That mobile home thing wouldn't have been a bad idea. You should just dump that house and buy 2 or 3 mobile homes and rent them out. A fully furnished mobile home cost like 20-30 grand. You would still loose a bit of money but it's still better than dealing with that
Last year , I had the whole house replumbed in NorCal, did pex, and it was about 3K. What was this house, a Flip redo that they decided to change their mind?
quicksand=liquifaction=whole house will definitely settle down esp. during strong earthquakes ..hope foundation is really well made for that property p.s. commented this prior to arriving at the part where Kevin talked liquifaction so I know my foundation engineering in my opinion just don't buy that property
I control 6 million dollars in houses but I can't spend $1,000 - $2,000 for a professional inspection first. A proper inpsection will also show property lines.
Sucks, am curious to see what solution option are viable. Did a 100' sewer fix in expansive soil. Backfilled w/ sandy loam instead. Under a foundation prob not an option.
If this is Shadow Hills, then you're on your own. Shadow Hills, drainage, soil, sliding, septic tanks, landslides, wildfires, etc. Other than these things you're good.
California makes it insanely difficult to get all the permits to demo and rebuild the house. It's an expensive long process, but ultimately someone with money to burn will likely buy the property and do just that, since it offers a nice view, and a more permanent, modern earthquake proof foundation would let a house sit there 200 years. Kevin is in the business of buying profitable property, so it wouldn't make sense for him, unless this property was in Kentucky or somewhere rural.
The grade at the crawl hole is lower the the outside grade ...and flooded toooo yukks...I think you will dump at least 400,000.00 into that especially costs for new construction are 350 per sf ...
I thought liquefaction was only an issue during earthquakes. Our house in such a zone and only found out because someone wrote an article about it and posted a link to see what kind of zone your home was in (flood, fire etc). The house wasn’t severely damaged in the 94 earthquake but there was some horizontal cracks on the foundation that yet haven’t been fixed 🤔 during the last small earthquake we had I did notice some small cracks and odd things where we added a slab addition 👎
So if you dont permit a plumbing fixture (leaking shower pfister valve) and that fixture never has an issue after replacement but the tenant goes snooping in city/county records they can sue for all the rent they ever paid because a single non permitted plumbing fixture makes an entire home illegal? It makes my permitted detached garage illegal even though it's separate from the house with an illegally non permitted plumbing fixture? That seems extreme....if that's the case I need to start renting again. Seems I could make more money renting. City of Ventura YES a Permit is required for •FOR DETACHED ONE-AND TWO FAMILY DWELLINGS ONLY (Not a complete list.) ELECTRICAL/MECHANICAL/PLUMBING FIXTURE REPLACEMENT
Only in CA can a deal like this possibly work. In my location, finished, that is a $200K house. Lets see, $100K in foundation work, plus $100K finishing the house plus septic, permit, grading, and drainage issues? No freakin' way. Here, seller would need to pay you to take the project. Then knock it down, and build something right.
![ค้าง (STILL) - GEMINI [ OFFICIAL MV ]](http://i.ytimg.com/vi/Ftxx3hk5vkU/mqdefault.jpg)
"No foundation is a level of foundation" Yours truly, G
No rebar is a level of rebar
Got fish!?
Maybe they left the 2nd bathroom off the description to make people "jump on the hidden deal".
@@MeetKevin you dont need rebar. It depends on the soil. I use to pour thousands of yards of concrete and most the time with no rebar. Just depends. You sound so surprised to hear no rebar in a foundation.
@@unleashedrider4309 I think he does that for dramatic effect
Can you believe what the foundation guy found? Nuts... This is why you inspect your real estate before buying it...
Meet Kevin so. You are getting out. Correct ? Talk About reality videos
U found it yesterday
U inspect it
U drop it
U post it
Good video !
Based on the investment knowledge that you have conveyed to me in this video alone, I personally would not acquire this property! Take Care
and visit it the day before you close.
Run away and retract the offer.Total money pit yikes.Good luck Kevin.Another great video and the lesson learned is always get an inspection before offering to buy a property.
Sounds like it would be more profitable to demolish and build a new house depending on home value vurses build cost, I personally would back out.
After I woke up, I had a thought I dont remeber the name but maybe contact the people who do the 3D printed houses and see if they can do a deal with you to build a new house and possibly save the new roof, but truthfully they may not help. Although they may be interested in useing the land as a possible test area for conditions for there printed house.
This is the kind of house where the seller pays you to take it off their hands 🖐
For sure, but the lender will like to recover most of the loan
Dylon Garrett - Investing and Personal Finance free piano
The area might be a expensive area and even with the money put into the foundation and a retaining wall, this could still be a excellent southern California investment.
@@califdad4 not with the fires
@@rochester3 obviously not any fires around there
So then this is a “Wedge” deal where the house wedges itself deeper and deeper into the ground?
Good value.
For the seller.
I'd call it a wedgie deal.
Money pit
🤣🤣🤣🤣
The story would be complete, if:
The seller’s name was SANDY.
solid riff
Mr. Sandy van Ripoff
As a real estate investor myself I would be so nervous owning this property but I'm sure you'll be able to turn it into something great like you always do!
This house is basically a car with a salvaged title. Wouldn’t buy.
Sadly
@@MeetKevin offer money for the land, less the cost of demolition.
My second car for work delivery is salvage due to theft of interior. Interior had been replaced.
I have bought salvage title cars. As long as the price is right, and you plan to keep it for a long time, it can work out. Want to be green? Buy a savage title vehicle!
@Mouseythegreat the cars worth was probably worth a little that replacing the interior such as airbags, electrical components, seats was going to cost more to replace than junking the car.
The entire video, I had the thought that you had already purchased the house. Nice to hear that you had it inspected for issues before purchasing it. Sounds like a lot of very complicated issues with it.
When I see foundation issues, I walk away. There is always another deal out there.
run away right
...and that's why you always make a home inspection a condition of offer!
Even the most experienced of investors couldn't have seen these issues.
Bingo!
Experienced investors and perform the due diligence on the numbers; that is why they differ to a seasoned inspector for property condition. The inspector differs to a contractor to get a cost estimate.
They wouldn't see 3 big cracks in the foundation in 14 feet?
The foundation issue was pretty obvious.
Thanks for the GREAT insight! I try to inspect before I
buy , but, a lil risk sometimes overtakes me. The 6 million dollar man has a higher level of risk then I. Chester pa.19013. average cost of house 30k .rents are plus or minus $850...Most investors
shun Chester. I LOVE IT!
More for me! Chester the Invester!
This looks to me like a teardown and start over.
how you fix the land so the new one does not do this stuff too?
@@David-sq2en put a trailer/tiny home on it 🤷🏼♀️💰💸
@@David-sq2en Non-expert here: I suspect if this house was being built from scratch test holes would be dug and a plan would get put together by an engineer and geologist that involved some kind of piles. Maybe screw piles, maybe hammered in piles, or maybe just a regular foundation but deeper reinforced with rebar. The video makes it look like some kind of serious retaining walls might be required as well.
But I suspect it might economically feasible to fix this house. Especially if the owner just gave it to you.
yes just buying a over priced lot the house takes away from the value
@@richardbrobeck2384 There's some sadness to this story. Somebody did what looked like some quality work or at least he a good amount of effort to renovate this house, but it turned out badly for him and it looks like he didn't have the knowledge to deal with the problems in a property like this and he didn't have the knowledge to know that he didn't have the knowledge.
Not surprised it’s roughly 80k for a new foundation... always always inspect heavily before buying.
Zachary Laid Finding Freedom when there’s foundation issues, I just walk away. Thee biggest expense in fixers
80k for a new foundation over there? I'll be on the next flight over from the UK looks like there's some money to be earnt
I sense hard lessons with this one. Good to see for all the subscribers on what to avoid and to have a pre-inspection prior to purchase if possible?
Hard lessons are the best kinds. It'll guarantee you remember it forever.
Considering the absurd amount of work this house needs, I would be interested to hear about your thoughts on new constructions for rental properties. Is it viable to build new? Would a duplex work or even a multi unit?
No. The cost to build is far too high here in Cali. It might be less elsewhere.
@@mattd916 Also you don't have the benefits of being a private investor, who is able to pay more then anyone else but the home buyers. Instead you compete against big investors with construction partners and better prices, because of following contracts. Also big investors could use the same construction plans over and over again and cut their cost for architects to a minimum.
The lot would also have to be zoned for multi family.
I was waiting for Clint Eastwood to ride over the hill on his horse.
Kevin don't do it. I care about you.
Kevin is turning into the Hoovie's of houses.. "I bought the cheapest house for sale on the internet and this happened...."
You don't need an inspector to see those problems. Just working eyeballs.
*I just bought a house on top of a hurricane, any advice?*
I’m wondering if building a 4500 square foot from the ground up on that lot would be the best roi. I guess it depends on the comps.
I’m so looking forward to this series. I’ve been wanting to do something similar in one of the canyons around LA. Keep up the great work and content. You’re winning!
As a structural engineer I find it frustrating that the value of a property is driven by cosmetic finishes. In other parts of the world the value of a property is heavily dependent on occupant life safety. As a result, new structures in those areas are continually innovating their engineering and construction methods... We’re here waiting on the new flooring and cabinet trend while still pumping out new homes with same framing methods we’ve been using for decades. This needs to change or we will continue to fall behind with our infrastructure.
man, that was a great video. Shows the real risks associated and you doing your due diligence. Thanks!
With 2 Acres, you'd probably be better off tearing down, splitting the lot in like 4 and developing multiple houses. The whole lot looks like it would need some reengineering anyway for water, drainage, and soil erosion. Might as well go big.
Was thinking the same. He has limited time to back out though. There are real good inexpensive fixes for foundation and hillside. It's not that bad. I'm surprised Kevin was shocked that there was no rebar. He claims he was a contractor before. It's weird that he doesn't know most homes from 50's and earlier don't have rebar. I thought he bought some older homes before. I'm guessing if bank drops the price it'll be a 50k to 75k price cut. He's disclosed too much damaging info for it to be relisted at the same price and now they must disclose everything he's found. Not sure if he can max out the garage as an ADU with the original house size since he's looking for an additional garage from tuff shed.
The old house went through earthquakes, because it lacks rebar and footings large cracks ensued. The texture of the soil is a huge consideration for differential foundation movement. You forgot to ask if this is an on-going problem and if underpinning the foundation would arrest the problem. I do not have much faith in a young inspector with no gray hair since he lack the needed experience to make an $80k determination. You have to be able to explain away the negative on the foundation when you sell.
No wonder houses in CA are so expensive! The tenant can sue you because an add on was done without permit that’s crazy
Your house is really a boat floating on dirt.
Wow, I could have that entire house jacked up and a whole new foundation poured for less than half what your guy quoted, but seriously that house does not need a new foundation unless you plan to move it (which you should consider if actually doing the foundation). That foundation can be cheaply repaired with structural mortar and by driving rebar into the existing structure and wrapping it all with mesh.
Pull up subfloor (don't trash it), dig under pad to level with jacks, use hydraulic cement to fill cracks, replace same subfloor. Get additional permit for retaining wall, (concrete/rebar at angle into slope w/ large footing). Dig relief ditches for runoff. Open permit means get the best inspector possible because nothing is permanent on the property yet.
Love all of your advice, man! Can’t wait to purchase your courses soon!!
@meetkevin Thank you for sharing. Definitely some lessons to be learned from this video. I hope you were able to get out that deal.
Have you even purchased yet because I’d not A) either get the deal so cheap it’d be dumb not to do it. B) Leave the deal and run for the hills C) change your title cause misleading
Kevin needs to watch Homestead rescue to see how they deal with flooding on sloped lots. They made a really nice water diversion system that would help here.
Hey Kevin, Just stared watching and I am for sure enjoying this set the most! keep it coming and be careful.
Ok, I’ve had fixers where I dealt with squatters, roaches, liens, mercury spills, termites, full remodels, but never quicksand! 😂
I'M BATMAN!!
Wow mercury spills?
CraveThatCoin I know right?! The family sold the property of behalf of the owner who was a gold miner, apparently he used mercury to separate the gold and soil materials and dropped a ton of it in the house. We tested during inspection and it tested positive in two parts of the home. So the sellers family paid for mercury clean up in escrow and I had to include that in my disclosures lol. Apparently it’s not as expensive as you’d think. It ran them around $1,500.
@@SteveRam ah I see that makes sense now. Yes that is certainly right as mercury has a history of use with gold mining. He must have harmed his health dealing with mercury like that.
I've dealt with asbestos, lead but not yet mercury
I learnt so much from this video wow. This is a gem content you giving up for free Kevin. Thank you so much from all of aspiring to own real estate in the future.
I’m no real estate guy umm but the house has no walls either...You didn’t even mention that
lol
I'm new in the business and your videos are a lot of help, I check websites like Realtor, Trulia and zumbly and usually find properties that are cheap. Thank you for your videos!
Plus side is this easily gives you more content to post about and is a story that many will want to continue hearing about whether they are new to the channel or not.
If there was no house, what would the land be valued at? Is it more of a tear down, sit on the property, sell to another buyer looking to build? Depends on the water table there right?
Cons: Foundation issues, septic issues, lot/permit issues, and cosmetic issues.
Pros: Watching Kevin pound out a couple dozen videos on this property, earning money on TH-cam to offset the cost of repairs.
Good luck, my friend, and keep us posted. That's cash in your pocket!
Hi Kevin. Great content tremendous value I realize the other morning you were recording a video at 2 AM and often wondered with someone else with kids and family life how do you manage to work full time and still manage to produce the stellar content and valuable courses (yes, I have a promo code) :-)
Maybe a day in the life video including family life?
Ty maybe!
We all make mistakes. I once bought a condo near a power station that was making me sick from the EMF radiation. Ironically, the electrical bill in winter was $600/mo. The structure was block without sheetrock and insulation. I sold it within 2 months.
Kevin, Congratz on 200k subs! Iv been watching for awhile now. Keep it up. I love these videos.
I gave myself a little laugh right at 13:55 when he paused before giving the price for the foundation work. While he was pausing, I thought to myself: Hmmmm..... 80 thousand?"
Don't buy unless you're certain of the exact cause of settlement (like a specific water leak that has been fixed). Even a new foundation won't solve the problem if the soil itself is still moving. Foundations are not designed like beams, in most instances even when built properly they're really designed to bear uniformly on the soil, not to span over it. A new foundation might very well have problems over time, too.
As a former realtor myself I always tell my customers about inspections including soil tests. If any of them come back that are not correctable the buyer can cancel the contract and the Seller must return the deposit. Its buyer beware!!!
Know when to hold them, know when to fold them. Best of luck Kevin.
The Gambler... so true!!!
Know when to walk away and know when to RUN.
Dang, I was really looking forward to watching his upcoming vids on the remodeling of this house. But holy moly it has problems ! I was throwing in the towel at like the 5 minute mark ! .... Wondering what the solution would be with that quick clip of mold in the ceiling of that bathroom. I mean do you just sand it down, bleach the crap out of it, and primer/paint it ? Or do you have to make a hole in the ceiling and inspect inside/above it to make sure it's not in other places?
So I have some questions Kevin. Did you leave any contingencies in your contract or did you buy it “as is”. Have you checked to see if the house is in a flood zone or do they have those maps available in That part of California? Have you talked to the neighbors about the history of the house?
As is with contingencies
Good idea on neighbors - and yes on maps
Thanks for responding. I hope it all works out for the best for you. I enjoy your videos. Keep ‘em coming!
So does this mean you have an out if you choose to take it?
I accidentally bought quicksand built on top of a house...
Sounds like you have a money problem.
Wow can't imagine that, sorry to hear that.
The timing of my Dad’s Game of Thrones ringtone at 15:08 😂
Hi Lauren. Jack will be so disappointed when he hears the results of the inspections
Lee Klinglesmith hey there! Yeah, Kevin should record his reaction 😄
Glad I'm out of that mess of a state. Got my 1st home for 100k this year in .75. Septic issues but we self fixed. $2000 gotta finish cosmetics and flip it. :)
One thing I’ve noticed about Real Estate when it comes to getting a deal and the way things are priced for sale. It seems as though no matter how bad of shape the house is in they find out what the house would be worth in good condition and then subtract the cost it would take to get it there and that’s the sales price so you almost never get a deal but it becomes a deal over time.
I also just backed put of a sale after seeing the inspection
.... so what you are saying is your house needs a new house?!
Haha bingo
Amazing videos Kevin!!
Would you counter off based on the price of the newly discover repairs? The rule I use is a property is worth 80% of after repair value minus cost of repairs.
Yup
Put Weeping Willow trees where the drain runs through the yard if the roots won’t spread to the plumbing.
C'mon guys, this is a replacement dwelling situation here, there is nothing left to save. Throw those timbers on the fire and start again! Build a 21st Century house that is fit for purpose. I imagine it will have some form of ability to let any flood water through the building ie a raised ground floor. Build something bold design wise and that will be the way to add value. People do this in the UK where I am from a lot. Also we use piled foundations to get to stable ground. There is nothing very difficult about it so long as the money stacks up, however you are probably looking at a big retaining wall of concrete too.
Very good vid Kevin, i like "The money pit" concept to address budget flexibility. Thank you very much
No one:
Your house: HELP ME, I’M SINKING!
There are ways to build a foundation to compensate for this and *none* of them were done. It's literally the "how not to."
Foundation was assembled as multiple separate chunks using a method that had no rebar combined the worst possible design geometry for the terrain it's been put in. The septic system is insult to injury for the plot at that point.
That is a property where you're stuck demolishing the house and starting over. I'd almost say just turn that garage into a guest house and sell the house as a fixer-upper. However, it might could be salvaged without a full-reboot. That would require patching the foundation, expanding the perimeter of the foundation with the proper geometry, and leveling the floors. Ideally, some parts should be opened up to add some reinforcement, but it might not be necessary with good foundation geometry.
I'm not an expert. This is just some stuff I've picked up over the years in Mississippi, where foundation issues are rampant.
You should ask the foundation guy the time scale these cracks are happening. Thus, if you did the cosmetic repair on the foundation, how many years would it take to arrive at the current state. Would repeated repairs be cost effective? A second option is to tear-down the house and sell the land as unimproved. A civil engineer or architect might be interested in a bargain-price piece of property at that location and have the technical knowledge to tackle the water problems.
Wow, crazy to think people buy homes without these inspections. I’m not all that familiar with foundations, but what’s the advantage of just pouring a newer/better foundations versus using a pillar/crawl space type foundation that would rely on the more stable bedrock versus the unstable soil? Just curious.
Thanks good information
I've run into a LOT of foundation issues in our area, most of the houses are pre-1950's and some of them just have a few layers of brick for foundations (a few don't have a foundation at all!) To be honest, it would probably be cheaper to tear it down and have a new home built (with a proper foundation and drainage system), but I also understand wanting to preserve history, so...I guess it all depends on how much you want to spend.
@francesco deminelli Good point. I just mentioned that because they commented the foundation might be from the 50's or so, but with the additions and it being stripped, not much left in the way of history on this place anyway.
The video itself was a good video. it was a teaching lesson to always get an inspection. in some areas the real estate market is so hot that sometimes to close a deal you have to say no inspection
I got it! Make it into a "What not to buy MUSEUM"! Hang signs with arrows showing all the problems. Sell tickets, have a tour guide. Have a food truck too.
i'm at a loss here, 2 acre lot with a dump on it in in socal... seems like a dozer is in order.
So, Kevin, it's Aug. , 2020, did you buy this property? I like your video's on properties and houses, etc. They're very informative and I've learned a lot watching them. Thanks
@meetkevin I'm going through something similar. Not on quicksand or foundation but everything else and I already own the property. The inspector missed a bunch of stuff. Needless to say he will never be used again.
Ah! An inspector! See I was thinking because mine was a contractor...a year and half later things beneath foundation :(
Just some advice from experience and working reading water meters for years...please use something other than your finger to open water meter cams.
Black widows love to hide inside meter cams and hang out around the opening because that is the way good normally comes in. So I you stick your finger into the hole you can get bit.....that would NOT be good!
Btw love watching your channels 😃
I could tell right away this house was in a bad location. The dirt wall 10 feet from the house was a big yeah but
Demo it down to one wall, pour a new foundation and rebuild a new house and call it a renovation legal under California building code. The other option is to walk away.
ya but it has a new roof lol
@@wizard3z868 well there's that going for it.
@@patrickradcliffe3837 😎👍
i think we have similar code in nh one old restaurant closed down new owners ripped everything down except 2 walls than rebuilt found it funny at the time making sense
This house is the best possible example of the Money Pit Scale. Branded into my brain for life. Thank you.
Bingo
Even if an investor is handy or has construction experience, nobody has ‘all’ of the knowledge needed to find and price every issue that might be present. This occurred to me as your foundation guy shared the slope measurements from the out of level floors and knew about the lack of steel in the concrete. And that is just one example of many issues... thank you for sharing.
Great Vid Kevin!
This is the second house you found like this. While its good education for all of us, I feel like you are trying too hard to buy something when time is just not right.
I like you more than graham stephen shhh 🤫
Graham Stephen is annoying af. talks way to fast
But have you had your avocado toast?
@@Phctn That's because he makes one million edits every video and splices them altogether in one rambling non-stop video. His editing is horrible. Kevin seems to understand videography way better.
Kevin: I just accidentally bought a house built on quicksand...
Also Kevin: This sucks... I honestly don't know if I can go through with this purchase.
Lol
Why is the Electrical Panel outside, I see can see maybe throw switch below meter in case of fire?? Panel dont take up much room inside.
Dude I worked for RamJack. Like, I did the actually fixing the foundation work and I can tell you that foundation is EVERYTHING when it comes to a house... i think you’d agree considering it’s the most expensive thing to fix... and this house is going to be crazy expensive to fix just on the foundation alone. Yikes man!
_Love the series, but would like to see the numbers on this deal_
This one is very easy to spot though. Once you see the cracks and slopes around the house and i wouldnt even put an offer on it. Thank you for sharing the experience though, very informative.
you said foundation is the most expensive. is that in the event that a house is already built on a foundation and having to repair it? or does that also apply to creating a brand new foundation on an empty lot which there is not yet a house built on?
How much would just the lot go for is u scrapped the place out?
Looks like the builder experience the foundation problems and gave up yeah?
I'm not sure if my question is forcing you to give anything away with upcoming videos, but is it possible to turn a profit with all you seem to have to do with this house?
That mobile home thing wouldn't have been a bad idea. You should just dump that house and buy 2 or 3 mobile homes and rent them out. A fully furnished mobile home cost like 20-30 grand. You would still loose a bit of money but it's still better than dealing with that
Last year , I had the whole house replumbed in NorCal, did pex, and it was about 3K. What was this house, a Flip redo that they decided to change their mind?
quicksand=liquifaction=whole house will definitely settle down esp. during strong earthquakes ..hope foundation is really well made for that property
p.s. commented this prior to arriving at the part where Kevin talked liquifaction so I know my foundation engineering
in my opinion just don't buy that property
Hi Kevin,
I have a single family investment property. I am going to purchase more. Where is the best place to look for insurance for it?
Thanks
Bill
You Know what they say in geology? If it was once a river it will again be a river. 🙆
I control 6 million dollars in houses but I can't spend $1,000 - $2,000 for a professional inspection first. A proper inpsection will also show property lines.
Sucks, am curious to see what solution option are viable. Did a 100' sewer fix in expansive soil. Backfilled w/ sandy loam instead. Under a foundation prob not an option.
If this is Shadow Hills, then you're on your own. Shadow Hills, drainage, soil, sliding, septic tanks, landslides, wildfires, etc. Other than these things you're good.
Great video editing skills do you do it by yourself or you have your team?
wont it be easy to fully demo the house and rebuild everything?
California makes it insanely difficult to get all the permits to demo and rebuild the house. It's an expensive long process, but ultimately someone with money to burn will likely buy the property and do just that, since it offers a nice view, and a more permanent, modern earthquake proof foundation would let a house sit there 200 years. Kevin is in the business of buying profitable property, so it wouldn't make sense for him, unless this property was in Kentucky or somewhere rural.
The grade at the crawl hole is lower the the outside grade ...and flooded toooo yukks...I think you will dump at least 400,000.00 into that especially costs for new construction are 350 per sf ...
Kevin, I love your landlord videos. Also I will listen to your episode on the BiggerPockets Podcast.
I thought liquefaction was only an issue during earthquakes. Our house in such a zone and only found out because someone wrote an article about it and posted a link to see what kind of zone your home was in (flood, fire etc). The house wasn’t severely damaged in the 94 earthquake but there was some horizontal cracks on the foundation that yet haven’t been fixed 🤔 during the last small earthquake we had I did notice some small cracks and odd things where we added a slab addition 👎
So if you dont permit a plumbing fixture (leaking shower pfister valve) and that fixture never has an issue after replacement but the tenant goes snooping in city/county records they can sue for all the rent they ever paid because a single non permitted plumbing fixture makes an entire home illegal? It makes my permitted detached garage illegal even though it's separate from the house with an illegally non permitted plumbing fixture? That seems extreme....if that's the case I need to start renting again. Seems I could make more money renting.
City of Ventura
YES a Permit is required for •FOR DETACHED ONE-AND TWO FAMILY DWELLINGS ONLY (Not a complete list.)
ELECTRICAL/MECHANICAL/PLUMBING FIXTURE REPLACEMENT
Mixing here: I said illegal additions - I don’t think it’s as extreme as your example, but it does beg the question!
@@MeetKevin There's so much grey area. Thanks for the response great videos!!!!
Only in CA can a deal like this possibly work. In my location, finished, that is a $200K house. Lets see, $100K in foundation work, plus $100K finishing the house plus septic, permit, grading, and drainage issues? No freakin' way. Here, seller would need to pay you to take the project. Then knock it down, and build something right.