Property Specific Risks

... and how to manage them.

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Property Specific Risks

Avoid Unnecessary Project Pain

We deal with the Location Risks in a separate tip. For now we are focusing on the property itself and its improvements (immovable structures).

Property specific risks include:

  1. Renovation issues that are not foreseeable (behinds walls etc.)

    1. Cost overruns

    2. Completion delays

  2. Permitting 

    1. Time to procure, especially important if using financing.

    2. Entitlement - will the local governing authority even permit the proposed work to go forward? 

  3. Environmental - Issues can include soil contamination, subsidence, mineral rights, and previous use. For example, if a property was known to have been previously used as a meth lab, there are mitigation requirements.

  4. Prior litigation - boundary issues, neighbor disputes, and right-of-way issues are not common, but do occur.

For 5 tips on how to manage these risks, click here.