Remember John Dough? You met him on November 6. He bought a bank-owned property with the intention of finishing the renovation and selling it for profit. You heard about his private financing on November 18th. Now, John has a loan, he has a deed, he has a budget. He's picking up his hammer and getting to work.Here’s John in his own words:
Getting to Closing in One Piece: It’s been awhile since I last commented on our progress so here is an update. After we secured our financing we had about three weeks until closing. It was pretty uneventful. Title was clear, taxes were owed, and the water/sewer bill had to be paid. The bank owning the unit agreed to pay the taxes, but would only pay a 1/3 of the water/sewer. So we had to pay the balance, which wasn’t much ($400 or so) and we also had to insure the property which meant that we’d be paying for the share of the other condos in the building that were bank owned. That cost was about $1200 for a half year master insurance policy. We plan to recoup 2/3 of that cost when the banks try to sell their units. With all that going on, we closed about a week later than expected but we weren’t subject to the usual fees that banks invoke when you don’t close on time. We now owned the condo.
Renovation begins: As I mentioned in my earlier entries, the unit was already half renovated. So it had been gutted, re-wired, and re-plumbed. When we took over the unit had the sheetrock and plaster done, new doors installed, the HVAC system was installed, and 90% of the trim was done. Our budget was $49,250 to complete the unit. That doesn’t include any work in the common halls and exterior, which also needed some work. Our budget is listed below:
Finish hvac $1500
Finish elec. $3750
Finish plumb. $3500
Wood floors $9000
As we have been trying to order supplies and keep our timeline on track, we have noticed that with the credit crunch manufacturers aren’t making their products in great enough numbers so we have had delays getting flooring, vanity’s, door knobs, and lighting fixtures. We are probably 2-3 weeks behind schedule as a result of it. Next entry I’ll talk about how we did with our budget and our inability (thus far) to get refinanced. On a side note we have had a couple of showings with strong interest. Prospective buyers have been impressed with the quality of the finishes and the attention to detail. There isn’t much on the market that’s competing directly with us that can match our level of quality.
What do you think of John’s plan?
Are other builders seeing delays in getting construction materials? Is this a new side-effect of the economic downturn?
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