Moermond: a lot going on. Looking at your situation and hearing the things you need to
do, including going through probate and past taxes, find funds to do the rehab. As I sit
here today in July 2024, what is different today than has been the case in the past four
years it has been on the Vacant Building list?
Carrie Nelson: I was engaged to a construction worker who was going to pull permits
and do the work. That was a big part of getting things done, and that caused some
problems. We don’t have a long probate process, since it has been 3 years. It is
significantly more than what we knew about. I’d like to retain an attorney then to guide
me through the legalities of saving the home. Things have changed with funds. We
didn’t know if there were any funds in the estate, but I’ve found there is money.
Moermond: why haven’t you done those things to date? Circumstances haven’t
changed over the last four years. Those same opportunities have been available to
you. Now the difference is the City is proposing to remove the property and that’s the
catalyst for evaluating this?
Carrie Nelson: yes. We didn’t have any idea there was any money in the estate. He
didn’t leave a will. No insurance companies or anything. He was a hoarder. I’ve had to
find a lot of things. He has another property in Wisconsin I just got an offer on. It is
only land. We have identified about $40,000 we can use to repair. I’ve gotten a lot of
people who contact me to buy “as is”. What if we didn’t want to fix it, can it be sold?
Moermond: I’m going to say two pieces are the first things to deal with. One is getting
the Code Compliance Inspection Report, which is the punch list of things that need to
happen to bring it into minimum code compliance. We can email that form to you.
Carrie Nelson: while we were doing the condemnation in 2020, we worked with County
or City who installed a furnace in the home. It was $10,000 invested by the City. We
got two dumpsters and removed stuff. At the time for the heating installation, it had
been cleaned out.
Moermond: that’s good. In terms of the Code Compliance, that’s the punch list to get
bids on to do the rehab. The other thing is the $5,000 Performance Deposit which
indicates you’re in the game. It is to perform. If you do perform, it is rehabbed, you get
that money back again. It doesn’t disappear if the work is getting done. You create
your own carrot. I can tell you for my purposes those are critical, but additionally the
property isn’t in your name yet. The other is the past due taxes. From what I can figure
cost-wise there is about $20,000 in past taxes, the $5,000 Performance Deposit, $700
in the inspection report. So that’s $26,000 before you’ve done anything. Add in the cost
of paying the contractors and probate costs. Most people end up having to use an
attorney to do that. Likely some costs around that. Paying the contractors, we’d look
for evidence of the financial wherewithal to pay the contractors. Staff’s best guess is
rehab would cost $75,000. So that’s $100,000 without attorney costs. I just want to do
that reality check so you aren’t surprised. It could cost less; it could cost more. That
really depends on that Code Compliance Inspection Report and what your contractors
say.
You asked about selling. What I can tell you is that by the time a property becomes a
Category 3 property, it cannot be transferred until the nuisance condition is abated.
That doesn’t’ mean you can’t work with a third party to do the rehab; we’ve seen this
done many times. People work with developers who specialize in this kind of thing.
You keep the property in your name, which it isn’t even in your name yet, and enter into
a contract that somehow designates that this person is doing the work and once it is
title transfers to them and payment comes to you. That isn’t out of the question, but
you’re still going to have to figure out probate. You have to have the taxes paid,