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New Project:Due Diligence Phase

California Form:17 Days Due DiligenceInspections of any type

Some Sellers (Banks) may Counter Offer with less time

(everything is negotiable)

3405 N Miami, 93727Check it out at Cyberhomes.com

What Should I DoWith This House?

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Due Diligence PhaseOptions

1. Decline, Back Out . (No reason required)

(Make sure to be within the time frame

or the seller WILL keep your deposit)

2. Ask for more time(in writing, within time

frame)

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Due Diligence Phase3. Close the Sale

4. Give the deal a

HAIR CUT

My haircuts have been 13,000, 15,000, 6,500,

0, 5,000, 2,500, 3,500, 20,500

Worth the Effort?

You Have NotIf You Ask Not!

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Haircut Notes1. If you reference

inspection issues, You MUST include the

inspections with your request. It’s a

Double edged sword.

Whatever you reference is now part of the record and must be revealed to

subsequent buyers

By you, if you buy itOr the Seller if you dont

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Haircut NotesExample: If you use the

“M” word (mold)You are opening up the Mold issue. The Bank

must deal with it.... Perhaps by giving a

further discount.

If you buy the property, you must now show that you have resolved the mold issue by the time

you re-sell it.

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Mold Notes1. Mold is everywhere. In the air we breathe all

the time

2. Mold needs 3 things to grow and thrive

A. MoistureB. Food SupplyC. Temperature

Mold will not thrive in Fresno if the home is built and maintained

properly

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Mold Notes3. There are 2

Categories of Mold for our purposesA. Bad Mold

(Stachyobatries)B. Other Types

A test kit from Home Depot will tell A or B

If the mold is not clearly Other Types,

Refer to an Industrial Hygenist or Mold

Specialist.

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Mold NotesSome Reasons Mold Grows

1. Reverse grading leading rain and irrigation water into the walls of the

house.

2. Inadequate mechanical ventilation scheme

combined with a fairly tight house and interior

generated moisture.

3. Plumbing Leaks.

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Mold NotesIn some cases the Mold can be dealt with by the fact that it all went away

in the dumpster.

Under Sink Cabinets, etc

Removing the contributing cause is

essential or remediation will be worthless.

Fix the grading, fix the leaks, add

ventilation.

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Mold NotesMold may be your best freind or worst enemy.

If already revealed, it will keep away a majority of

your competitors and you may get a good price.

If it is “Bad Mold” remediation will be

expensive and you should nail this number down before removing your

contingencies.

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HairCut RequestThe Cover Letter

Remember, These decisions are made somewhere else.

This is your chance at a “Sales Presentation”

Here’s a Sample: In Escrow at $80,000

Request $7,800Inspection Costs <$500

Haircut $5,000Was It Worth It?

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JenniferWe have completed our inspections on 4404 N Eddy and unfortunately found more issues than were originally visible when we made our full price offer.We would not ask for an adjustment for the things that were obvious but the following points were not originally observable.1.  Sewer inspection.   Reveals that the line has been replaced to the sidewalk.   However, roots have penetrated the line from the sidewalk to the main in the center of the street.  I have the CD of the camera going thru the pipe that Praytor & Sons Plumbing made during the inspection and the roots show very clearly.   I have been unable to copy it in order to email it but it is available if you or the seller would like it.2.  Roof Structure.   We knew we would have to replace the roof and that is not the issue.   At issue is that the excessive weight of current roof overloading has damaged the structure and will require remedial purlins and bracing to take the sag out of the ridge, and the south side valley.   See McClintock report item Exterior #3, & #4.3.  Unpermitted Items.   Initial research shows no permit or inspections for the Patio Roof, The Fish Pond and the Garage conversion and Garage closet.  See McClintock report Exterior #5,& 6 and Interior #84.  Mold has been confirmed in the Garage closet which must be removed.5. Firewall between house and garage has been breeched and must be replaced as a safety issue.   See McClintock report Interior #9The rest of the items are just wear and tear of a home of this age and were not a surprise to me.These items listed above, however, are going to break my planned budget.   I would like to proceed with the project, but am requesting a $7800 adjustment.Please convey my request to the seller.  Time is of the essence.

ThankYou

Dave RobinsonHairCut RequestOn 4404 N Eddy

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This is the real report from the Haircut Request shown above. This Inspector’s expertise is in the

code. He was formerly a plan checker and currently provides plans for GreenEarthEquities

when necessary. Do you think he introduces more “Poison Pills” than I want to deal with later? Do

you see the report working with the cover letter?

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HairCut RequestPhotos can be sent along with the HairCut RequestWhich of the next 4 photos do you think I should send along? How much do you think I will get?

Front Entry Porch Illegal Addition Adds to the Ugly Factor.

Will fit nicely in 40 yd dumpster on Day#1

3405 N MiamiNew Project in Due Diligence

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Most Bathrooms of Foreclosed Homes

Look Similar To This.

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Guess What’s On The Other Side Of This Wall?

Is This Stachyobotrys?See the CDC site

http://www.cdc.gov/MOLD/stachy.htmFor Remediation

with Bleach

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Not A Good Idea To Walk On This Roof

Are the Truss Chords Damaged? Or only the

plywood? Big (huge) cost difference to repair.

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Questions:1. Should I Proceed?

2. How Much Haircut do you think I should ask for?

3. How much do you predict that I will get?

4. I’m thinking of “officing” at 3405 N Miami for the next few months. If I do, how much would you like to be involved

in Renovating this house? Email me if you’re interested.

See CMA next slide

In Escrow@ $50,000

SeeCyberhomes

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Control Your Comps.Help Your Appraiser.Buy Close Together.

Ezie & Purdue make it easy to know Miami will sell @ $145-150

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