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Contaminated Soil Update

Old 01-20-2007, 09:48 PM
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Default Contaminated Soil Update

Below is several pictures of the location that was auctioned off today.
What my original intension for the house was to remove the roof from both houses, remove the siding, add 2 ft. to the wall height, eliminate the front entrance and convert the side entrance to the main entrance, remove the TV antenna, run the hydro to the house via underground, replace the windows (relocating many), replace the doors, build a new fashionable roof then side the place out with shutters and whatever else it took to set the place on fire.
The gas station all I needed to do was to make new garage doors and cap the fascia.....the garage looks quite good other then those two areas.
The grounds I would have pulled a few trees and most of the bushes, the sand box, a few flag poles, the half asssed circular driveway up front, those creep me out light boxes, graded then applied my green thumb.





Weird, I don't know why this picture isn't showing itself?????
- Yoda help!
- read my T-shirt bucko!







Well of coarse this is all for not because I didnít bid on the house.......and Iím not sorry for it either.
There was a good crowd today considering all things. Iíd say there was 30 people, but I suspect most were there as on-lookers like Susan and I were. I did talk with a wealthy young couple that was there, they were offering to write a mortgage for anyone which was interested. I donít think they were to interested in carrying the mortgage after I got through with telling them what I knew...they apparently knew nothing of the conditions!

Well the auction started at 12:05 sharp. The auctioneer gave his spew about the property and the conditions and then started things off. He started by asking 100k then quickly dropped down to 50, then to give me an offer. Things started slow but once the opening bit of 10k was spoke the pace quickened @ 5k increments. 5k increases were coming in from six different interested parties. At the 30-40k mark saw several parties drop out of the bidding and again at the 50-60k mark. Two interested parties were left fiercely fighting it out......the price climbed and climbed so quickly I thought the auctioneerís head was going to fall off. Bidding didnít slow down until the 100k mark, then it climbed by 1k increments.

The one old timer that was fiercely bidding on the place was bidding because he wanted it to stay in his family because his daddy had built the place over the years, starting from as far back as 1933 (gas station). The other active bidder was a wealthy city chap that wanted the place for his daughter. Well the auction finally came to a close at $105,000.00, the wealthy fellow with more money then brains ended up buying it.

After the auction was over everyone poured out of the house and small groups of people huddled together and talked.....I gravitated towards the old timer which lost out at 104k. He like everyone else I talked with aside from this one tall lanky fella hadnít done there homework on the conditions of the property and what it entailed. Eventually that lanky fella (lived just up the road) and I got to exchanging research stories, he agreed with my term of being stone walled every turn I made, he experience the same thing. His objective was the same as mine, but he had taken just a slightly different path, but we both basically talked with all the same agencies. I know I gave my research a solid 20 hours this past week on the phones and another serval hours driving around and talking with people, the lanky fella had done about the same. We were both surprise the place sold for as much as it did (105k) and we were both happy we werenít involved in it.

One thing that came out of all the people I talked with after the auction was over, was when the tanks were pulled from the ground, the soil was given a clean bill of health! So whatever the contamination was in the ground, it would appear that it has happened after the removal of the tanks. ! ?

Either way I didnít buy into a problem and I didnít get to buy any cheap houses today, but tonight I will sleep easy knowing my money is still safe for another day.

Thanks everyone for standing beside me on this one!
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Old 01-20-2007, 09:55 PM
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Default Re: Contaminated Soil Update

Let's try it this way........here is the third picture.

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Old 01-20-2007, 10:00 PM
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Default RE: Contaminated Soil Update

i didn't even know the tanks had been removed.in the states there is a big process of removing the old tanks one of witch is a clean soil from the EPA.they have a ten year plan here in fla where all metal tanks have to be out of the ground and replaced with fiberglass.
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Old 01-20-2007, 10:38 PM
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Default Re: Contaminated Soil Update

You got a good education out the deal that you can take with you on the next one. I get the feeling that the whole process gave you a rush and kept your mind busy, the very thing you were looking for. Looks like it had a lot of potential if it weren't for the issues.
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Old 01-20-2007, 11:03 PM
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Default Re: Contaminated Soil Update

We always learn from mistakes, some ďweď make and some ďother peopleď make. I would say you learned a great deal on this adventure. Good for you. Good luck on your next venture.



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Old 01-20-2007, 11:17 PM
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nice setup i must say , for a mechanic to work out of that garage and live next door . that is a deal of a lifetime at that price. but if your gonna throw the excavation into it touching the soil would be a different story. i think you should have posted the pics prior to the sale. I actually would of bought that property cash and rented them out seperately( after i looked into what rent went for in that area to asess a value ) . At that price and rent was a decent amount i would have bought that property from here at let it ride paying for itself .
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Old 01-21-2007, 10:17 AM
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You gained knowledge from your research into that property, so you came out of it ahead. There is the potential for alot of money to be made on real estate. But there is also the potential for some very substantial unforeseen costs to be paid.

I'm in the process of purchasing 2 acres in a neighboring municipality on which we are going to have our new home built on. I'm learning the hard way that you can get into some very substantial costs with regards to utilities, excavation, etc. And you can be at the mercy of local and county goverments that want to expand their infrasture at your expense. We're buying two back-to-back 1 acre lots. We requested a copy of the subdivision when we were originally looking at the property. We were given the top level drawing. The drawing showed an easement for the sanitary sewer lines for the two properties. We received estimates on running the utilities and other excavation. Our real estate attorney looked over subdivision plan and wrote up the sales agreement. After the sales agreement was signed and notorized, we were later presented with a close up drawing of the easement which showed the sewer line needed to be 8" pipe and have 5 manholes. It would then be turned over to the Municipality once it passed it's tests and inspections. We were looking into having to spend $50,000 to $60,000 above and beyond what we originally planned. And that was just for the sewer line. The municipality was looking for us to expand their infrasture at our expense. Problem is, the elevation of the properties and easement meant it could only accomodate those two lots. After 2 months of talks with the Field Manager for the Municipal Authority, they have agreed to let us run two private sewer lines through the easement to the existing main line. But if it wasn't for the fact that the easement could support only the two properties that I am purchasing, I would've been on the hook for that $50 to $60k.

Having gone through the experience I just described, IMO, if your going to invest in property, at bare minimum, you should probably have set aside for contigency, an amount equal to the price of the property. We still haven't broke ground yet. The land used to be farm land so I'm hoping we don't hit rock. But if we do hit rock, there's more $.

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Old 01-21-2007, 12:06 PM
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Default Re: Contaminated Soil Update

Yup, it's contaminated! It's got that cold, white stuff all over the ground. Donít want to live anywhere that stuff falls on you.


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Old 01-21-2007, 02:09 PM
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This thread is brought over from the other post.

Bugbuster - 1/16/2007 9:15 AM

Now I think there is no excavating of the dirt, they use new technology where they pump air through the soil and somehow that clears it up. That's what I've heard anyway. We haven't done any environmental waste clean up in a long time
Hereís what Iíve learned about the air injection cleaning process:

Some crew comes in and drills a bunch of holes in the ground and inserts some sort of breathable sleeves down in. Then all these holes are connected to some sort of oxygen pumping machine. The object is to inject oxygen into the soil for a year or two.....length of time depends on soil type. Then after the soil is well saturated with oxygen they start adding bacteria into the soil via the same hoses and tubes in the ground. The oxygen rich soil is needed otherwise the bacteria could not live and thrive. The bacteria is given a year or two to do itís job. I actually find it incredible that man can cultivate a bacteria in mass which eats petroleum by products....wow!

So Iíve been told this type of cleaning process is put onto a 2 to 4 year cleaning plan. Hereís where the hole in my knowledge comes from......what stops the ground water from leaching the assumed petroleum products past the bacteria field in the ground?
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Old 01-21-2007, 02:26 PM
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nanjemoycat - 1/20/2007 11:38 PM

You got a good education out the deal that you can take with you on the next one. I get the feeling that the whole process gave you a rush and kept your mind busy, the very thing you were looking for.
I'd have to agree with you, the time factor definitely turned up the heat / rush. Although I don't feel I won on this one, I love problem solving and this was a duzzy! I've already decided that I am going to continue to investigate this property......I don't feel my learning curve is satisfied just yet. I know there is answers out there, I just haven't figured out how to press the right buttons to get them...................I can see and smell the sandwich but I haven't tasted it yet, I'd at least like to be able to say that I've had a bite or two out of it before I'm satisfied!
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Old 01-21-2007, 02:55 PM
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2005FishermanWinner - 1/21/2007 12:17 AM

nice setup i must say , for a mechanic to work out of that garage and live next door . that is a deal of a lifetime at that price. but if your gonna throw the excavation into it touching the soil would be a different story. i think you should have posted the pics prior to the sale. I actually would of bought that property cash and rented them out seperately( after i looked into what rent went for in that area to asess a value ) . At that price and rent was a decent amount i would have bought that property from here at let it ride paying for itself .
In my week long rush to gather as much information as possible one of my stops was real estate value in the area. My realtor assessed the property out at $175 to $185k the way it stood ďifĒ the property didnít have contaminated soil issues....everything else equal. He felt if the property was manicured, the mold issue properly dealt with, the house and garage tidied up (nothing major) the place should draw upwards of $245 to $275k. He saw the potential to sell at over the $300k mark and closing in on the $400k mark but felt it could be close to a dollar in dollar out scenario. He said he would really have to see the final outcome to say otherwise.

As far as this property being a good investment, well lets just say this, this property is as close to the center of town as you can get without sitting in the middle of the ďTĒ intersection! What compliments that is this property is in the Golden Horseshoe area (southern tip of Lake Ontario). The Golden Horseshoe area is expected to grow by another 6-7 million people in the next 20-25 yrs. The three major cities in the Golden Horseshoe which includes Toronto can not expand any more then they presently are unless they grow upwards, that means people are going to have to expand into the smaller communities. That makes the property that was just auctioned off looking pretty darn good over the long haul.

Oh later today Iíll send you a PM, there is something Iíd like to talk to you about.
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Old 01-21-2007, 04:53 PM
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Default RE: Contaminated Soil Update

It might be waste-oil contamination. It wasnt illegal to just dump the stuff on the ground, until the 60s or 70s. Same with other chemicals like brake and hydraulic fluids.

Glad you came out unscathed.
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