The stalled project

A partially renovated house is a specific problem. It is frequently uninhabitable, which rules out most mortgage financing. Work of unknown quality with no permits behind it worries inspectors and appraisers. And the original budget is gone, so the owner cannot finish it and cannot sell it conventionally.

Meanwhile carrying costs continue: hard-money interest, taxes, insurance on a vacant property under renovation, and utilities. The longer it sits the worse the arithmetic gets, which is why an exit at a known number often beats waiting for a better one.

Situations we buy in

  • Renovations stopped mid-project, at any stage
  • Properties bought sight-unseen or at auction that turned out worse than expected
  • Flips where the scope and budget both ran over
  • Hard-money loans approaching maturity or already in default
  • Properties with open permits or work done without permits
  • Rentals an investor wants out of, occupied or vacant
  • Tax-delinquent holdings and properties with liens
  • Whole portfolios sold in one closing

Open permits and unpermitted work

Both are common on investment property and both affect a conventional sale. An open permit means an inspection was never completed and the jurisdiction's record shows unfinished work. Unpermitted work means no record exists at all, which affects insurance, appraisal, and legal use.

Neither has to be resolved before we close. What matters is disclosure: an open permit or unpermitted addition found during title or diligence is what moves a closing date, while one we know about from the start is simply priced in.

Taxes on the exit

An investment sale carries depreciation recapture as well as capital gains at the federal level, and a property held under a year is taxed as a short-term gain. If you intend a 1031 exchange, the qualified intermediary has to be in place before closing — it cannot be arranged afterwards.

Talk to your CPA before you sign. The sequence genuinely matters, and it is cheaper to ask first.

Frequently asked questions

Will you buy a half-finished renovation?

Yes, at any stage. Unfinished work does not have to be completed, permitted, or inspected first.

My hard-money loan is maturing. Can you close in time?

Sometimes. Tell us the maturity date and the payoff, and we will tell you honestly whether it is achievable.

Do you buy properties with open permits?

Yes. They do not have to be closed out before the sale.

Can I sell a portfolio at once?

Yes. A single closing across multiple properties is common.

I bought at auction and it is worse than I thought. Will you buy it?

Yes, and it is a frequent reason investors contact us.