Cogo Capital helps give a nuisance home in Spokane, Washington, a new start.

The Situation

For more than a decade, Cogo Capital, a private money lender specializing in financing distressed, foreclosed, and abandoned homes, has been committed to working with investors who help their communities.

Many of these acquisitions originate from a local government’s need to seek help from local investors, who often buy these homes when the city’s hands are tied. So, when a seasoned borrower brought a deal to Cogo that involved turning a nuisance home in Spokane, Washington, into one that could be flipped for a profit, it was an easy decision for Cogo to say “yes.”

This particular 1,776-square-foot ranch home had fallen far beyond what most people would call disrepair. The original owner had died, leaving her adult son living there. As his mental health issues and drug use worsened, police were called to the house more than 50 times, often for disturbances and welfare checks.

The Solution

Eventually, the owner agreed to sell the house to the borrower. In addition to funding the deal, Cogo Capital also paid the city about $5,000 to cover outstanding fines and abatement costs on the property.

The borrower’s construction crew gutted the house, finished the basement, and added a new bathroom, gas heating, and egress windows to give the house a total of four bedrooms. Once the house went on the market, there was a full-price offer within a few days.

This house is the fourth city “nuisance” house Cogo Capital has helped finance for this borrower. Neighbors say their property values have increased now that the home has been given new life and they can sell their homes with no concern if they choose to.

This case study highlights the extent to which a community can benefit when all parties involved in a deal have a larger goal. In addition to the monetary profit that can be made on a deal, communities can be elevated when homes and neighborhoods are restored.