Vacant Properties are Dangerous:

For many years we have watched as properties fall into disrepair. Rising taxes, declining populations and declining property values make managing some properties too expensive for owners to maintain. In some areas of the country the cost to build a new home exceeds its value upon completion.

One apartment building we know of had a gross income of $4,750/mo. Monthly operating costs were $2,600/mo leaving $2,150/mo net operating income just covering the $2,100 mortgage. The small town's budget was in peril so they doubled the real estate taxes on commercial property with the promise to reduce the taxes in a few years. The increase in taxes lowered the net operating income to $1,850/mo, caused a negative cash flow for the building, and an immediate 14% reduction in real estate value. The $56,000 reduction in value eliminated any oportunity for refinancing the property. Since the building could no longer be refianced there was no way to do any major repairs unless funds were made available from another source.

Once owners are unable to afford to suplement their properties many properties begin to fall into disrepair and some become abandoned and vacant. Vacant properties present a special set of problems. Some insurance companies will drop coverage. Criminals break into the vacant properties. Some catch fire. When a building burns it damages neighboring properties.

Many cities punish the owners who have abandoned their properties by imposing inspections and adding fines to the already high taxes.

We are proving an alternative to the punative damages instituted by the cities and the increased risk. Owners can donate their properties to Good Works LTD, get a tax deduction and quit worring about the risk and increased expenses. Please contact us to work out a donation plan.