MOLD:

Mold in houses has become one of the most popular scares in recent years. Although it has been around since before caveman days, our industry is always out to find something new to charge thousands of dollars to correct. Most molds, even black in color are not the toxic poison type of mold that causes illness in people. The temporary fix is to use a 50/50 mix of bleach and water to clean the surface. This does not kill the mold, it just removes the surface visibility and unless you take away the moisture or cause of the mold it will return. For mold remediation of black mold and mold infestation, please refer to my article on mold in your previous issues of REIP magazine. If you have significant mold in sight, one of the brands of product I recommend is Microban. It is highly effective in handling problems associated with mold, fungi, bacteria, germs and so on. You may find it by calling a janitorial supply company from your yellow pages book.

Microban is used by professionals for mold remediation; yes the toxic black mold remediation that costs thousands of dollars by people wearing HAZMAT suits. It is also used for water damage, flooding, sewage backups and such. Another type of product for the same problems is called Shockwave and may be easier to find locally. The effects of mold can be breathing problems such as asthma, headaches, rashes, stomach ailments and so on. The four steps to eliminating mold are to contain it, kill it, remove the dead mold, and protect from further contamination. This may mean an exhaust fan in bathrooms, better ventilation in rooms and crawl spaces. Placing dehumidifiers in strategic areas in the house, or using hepa filter air cleaners as well. You can get a mold test kit at major hardware stores for about $10.

LEAD BASED PAINT:

Lead based paint is a toxin found in many living quarters and can cause serious illness or even death. It is especially toxic to children and can even affect babies before they are born. A good thing is that lead based paint that is not deteriorating is not a threat. Also there are options to be done to reduce and eliminate the hazard. You can contact lead from paint by breathing it, touching flaking areas of paint, dusty paint surfaces and during renovations it can be cast into the air from hammering, sanding, sweeping and more. Youngsters can get it on their hands from doors, windowsills floors and such and then put their hands in their mouths as we commonly see them do. This can affect brain function as well as nervous systems in children. Long-term exposure leads to hearing problems, learning problems, behavior problems, headaches and lots more. Adult symptoms are more described as reproductive problems in both genders. Difficulties during pregnancy, a rise in blood pressure, nerve problems as well as bad digestion, memory loss and muscle pain. This threat goes lower risk in younger houses because lead paint was stopped for making and using it around 1978. So newer houses have less risk of this problem. Lead based paint test kits are available at most larger hardware stores for about $4 a kit. The most common places to check would be windows and sills, doors and doorframes, stairs, railings, decks, screen porches and lets not forget furniture. Don’t overlook your prized antiques either. If it’s old furniture that has original finished surfaces, this area is often overlooked. Any peeling, flaking or chipping paint accompanied by dust is suspect. To do it yourself or hire a pro for lead abatement, you need to stay clear of sanding, sweeping and vacuuming as this will spread the dust air born. Lead based paint must be removed (the painted structure) or most common is to encapsulate the paint. Products can be bought that you spray, brush or roll over the lead paint to seal in the hazard. The E.P.A. (where some of my research was obtained) has a booklet for free on lead based paints; it’s effects, the abatement and prevention available upon your request. This will provide you with some useful info.

METH LABS:

Another toxic terror that is becoming more well known is finding out that the house you bought or are thinking of buying as an investment was once used as a meth lab, a crack house, or some other form of drug related house. This came up at a seminar I am giving in Portland this week. The person asked my opinion about his deal and that it was previously a crack house. He made an offer and it was accepted. The house, he said, was a property seized by law enforcement and it had been vacant for a while. I listened and told him that I would not want to buy this house myself. Puzzled, he asked why. First, this information will need to be disclosed to all interested in buying it and could be a turn off. Second, I asked how it had been (cleaned up). He told me that the city had given the house a clean bill of health. So I said will they accept any liability if anyone has any health related problems? He said no. I told him that all liability would rest on his shoulders and he would be solely responsible for possible trouble. He thanked me, and said he really wanted to be talked out of the deal cause it was too much for him to do on his first deal. It was almost a total gut job. Now keep in mind, under his circumstances, I told him no I wouldn’t but it myself. However, I do know several investors with a lot more experience in this type of house that would have jumped all over this deal, and made a huge profit as well. It was the experience level here. He probably should get his feet wet without starting with an issue on the house like that one. The problem with drug related houses is that there is no set way to tell how much residue is still in the cracks, crevices, vents, gaps and other areas that may still cause exposure to the toxins. There is no real data on how long of exposure to this will it then affect someone. It is the responsibility of the homeowner from purchase on for any liability caused by this. So how do you know if it’s a drug house or meth lab? Generally there are beakers and burners and test tubes present shortly after abandoned. There may be a smell present and cans of cooking fuels around. There may be burn marks on countertops as well as dusty residue in kitchen and bathroom areas. Samples can be taken by taking scotch tape and (lifting) debris from surfaces of countertops, sinks, carpets, bedding, curtains, floors and utensils found in the property. Have them analyzed by a law agency and get a report. Then decide if you want to do the deal. Remember, this does not scare a seasoned investor who knows how to deal with creative real estate. This is an opportunity, or a niche, because most people will pass on these kind of deals, and the ones that do them…PROFIT.

CARBON MONOXIDE:

This is a problem that can be found in many homes. Even mine. I just recently had my furnace replaced and was about to remodel my basement and add some on to the house when I noticed an exhaust pipe from the furnace had separated from a portion of pipe. This had been easily 3 months or so since the job was done. I went to a local hardware store and got a test kit for about $6 and did the test. It came back as a dangerous reading from the kit. If not found, this could have turned out to be serious health risk. CM is an odorless, colorless gas or liquid and is hard to detect without a test kit. Though my culprit was a furnace, others could include kerosene and gas space heaters, leaking chimneys, gas water heaters, wood stoves, and gas operated equipment like cars. Some people in winter will start their cars in the garage to let them warm up before leaving for work and even with the door open this poses a threat. Even in low concentrations, fatigue and chest pains can happen. With more exposure it may cause dizziness, lack of vision or concentration, headaches and nausea. Exposure can be fatal. To reduce risks EPA guidelines say to keep appliances properly adjusted. Always use vented heaters and never use alternate fuel sources on thing meant for a certain kind of fuel. Such as do not use gas in a kerosene heater. I have seen workers do this on jobsites in the cold. You need to have an exhaust fan over gas stoves. Never grill indoors with any gas driven bar b que and have your furnace checked and serviced often. I hope this information will help and educate you as to the dangers of TOXIC TERRORS IN YOUR HOME.

Preparing and Undertaking Loft Conversions

By Helen Cox

There are many different types of conversions that can be carried out on your property such as if you have a garage that is currently unused then you could enlist some help and turn this unused space into an extra room; the same can be said with a loft. Many of our homes have lofts and for most of us that loft is mainly used for storing aspects such as Christmas decorations; however with the right help you can turn your loft around and make the most out of the extra space that it can provide you.

The majority of lofts can be converted to provide you with an attractive and large living area. You could convert your loft to be an extra living room, a shower room, a bedroom, a play area or an office. The options that are open to you are limitless as you have the potential to create whatever room you desire; however as with most extensions, renovations and conversions, a loft conversion may carry many regulations and permissions. Any restrictions that you may be facing with your loft conversion will surround the condition and the structural ability of your existing property. It is highly important that before you make arrangements for any work to be carried out on your loft that you contact the appropriate authorities to find out whether the work will require any permission. Although some properties may not require any planning permission it should be noted that all flats will.

As well as adding space to your property a loft conversion will also increase the value of your property. You will be adding space and value to your property in one of the easiest and more efficient methods. Converting your loft is classed as a cost effective way of extending your home and provides you with an easier option than moving home.

If you are hoping to get a loft conversion carried out on your property it is important that you get the work carried out by a team that inspire confidence in the work that they will be undertaking. If you are hoping for a loft conversion and you have already got the correct permission that you need then your next step is to enlist the help of a professional building contractor team who are highly qualified and skilled. The building contractor team that you use should carry out the loft conversion on your property quickly and in a way that causes minimum disturbance to your daily life.

If there is going to be a lot of work carried out on your property then the likelihood of your needing a form of permission is going to be increased. As well as needing to gain permission for the work to be carried out you will also need to enlist the help of someone who will be able to design the conversion for you to ensure that aspects such as ventilation and fire safety are taken into account.

For more information about having a loft conversion get in touch with a building contractor team today.

There is truly much money to be made in real estate. In fact, more people have become wealthy in real estate than in any other field. Contrary to popular belief, however, you don’t have to have a lot of money to start with, especially in today’s market. Tens of thousands of people in the United States are making money without risking their own cash or credit. The top three methods to using little or no money are as follows:

The first is a method called “subject to”. This can be done without risk by taking title to a property “subject to” the existing mortgage. What this means is that you leave the original owner’s mortgage in place and you assume responsibility for the payments. Many people are experiencing severe financial problems at this time, and are just looking for a way out of the responsibility of making their mortgage payments. Most of the homes involved are beautiful and well maintained..Personal guarantees by you are not required in order to do this. You can learn how to take on these deals when you visit my website for a free report.

The second method is to wholesale houses that are in need of repairs. These are usually low end properties that are in very poor condition, but with a little help, can turn into extremely nice, comfortable residences. You learn how to find these properties, get them under contract, and pass them along (assign them for a fee) to the contractors and carpenters who earn money fixing up houses to sell. You never own the property, you never close on it, but you can make anywhere from $5,000-$10,000 up on each sale. It is possible to wholesale 3 or 4 houses every month. Not a bad income for very little work.

The third method is using a technique know as a lease option. It works particularly well with homes in a higher price range. This means finding a house with a lot of equity already in it. This can be a house with a market value of anywhere form $400,000 to $800,000. A house in this range should have a mortgage of no greater than 30-35% of its’ market value on it. You option this for one price and, through the use of various sales strategies, you then re-sell it for a higher price, either by selling it outright to a cash buyer, or using a lease option contract. The seller gets the price they can live with, the buyer gets the price they want, and you get the difference, which, if done properly, can be tens of thousands of dollars.

Expenses are minimal, perhaps a few marketing materials and about $100 for an option deposit.. Using these methods, you usually don’t have to make any monthly payments or repairs, and you don’t have to go through the hassle of trying to obtain new financing. This is one of the best times in decades to be investing in real estate. Don’t believe the claims of “doom and gloom” you hear in the media on a daily basis. Do some research, talk to experienced pro’s, and make your own decisions.

If you’d like to learn more about these, and other helpful strategies, visit my website, as shown below.

Renovate and Retail aka Rehabbing

Another form of Real Estate Investing profit we will talk about is ‘Rehabbing or Renovate and Retail.’ It is important you understand the ‘ins and outs,’ of this business making a wrong move might end you up stuck with a property that leaves you very few options for unloading it.

Rehabbing is the process of purchasing a property that is in need of repair. Repair can run from as little as paint and carpet to as much as repairing the foundation and adding an additional story to the house. In general it works like this, the more rehab you do the more profit you are entitled to make. In rehabbing there is what we call the ‘headache factor.’ The bigger the headache, the more you make. It is crucial that you not underestimate the catastrophic possibilities that may occur during the renovation process.

You need to bid every project planning for the worst. If you plan to change the windows without a permit, make your cost estimate (and your offer) as though you had to pull every permit. Several times, I have made small repairs on a property and then the city inspector shows up randomly to take a look (haters).

This increases your permitting fees by double and the inspectors can be much more difficult after this. I can tell you nightmare after nightmare about each inspector having their determination of how the code should be interpreted and enforced. It doesn’t help that if you have a Range Rover or BMW in front of the house. Sometimes they are determined that you aren’t going to make profit on their watch.

If you are determined to succeed without problems, hire a licensed contractor to perform all of the work, but negotiate your fees to the equivalence of a handyman. There are a ton of contractors out there that need work and are willing to provide contractor quality for a fraction of their normal costs just to keep their crews in motion.

A good team of subcontractors is very difficult to assemble, and the contractors know this. A good way to find a decent group of contractors is to drive the immediate neighborhood where the property is located and find a contractor that is working on a low-rise commercial building. Every day they have guys sitting there on the clock while another process such as concrete drying or permit checking needs to be finished. These ‘extra’ guys can be utilized at your property and the contractor will give you a substantial discount because he was paying them anyway.

While rehabbing one needs to be familiar with the entire process from closing the property the first time with a seller or Wholesaler, to closing the property the second time with a retail buyer. The first closing is rather simple, but there are precautions you need to take. The first item to consider, you need to pay for a home inspection. Your hard money lender may not require it because they protect themselves by loaning a 60% or less of the eventual retail value, but there may be problems with the house (like mold) that are only discovered when your retail buyer performs their required home inspection.

In rehabbing, you need to have money for the initial purchase in addition to all of the rehab costs. Most people just starting out do not have this money set aside.

If you choose to do a rehab with hard money you might put yourself in a position where you have to pay back the money with ‘job money’.

To date, I have encountered the greatest headaches and the most profit in the rehab sector of the real estate business. The rehabber generally makes the greatest amount of money in the deal and they definitely earn it. But other than the amount of money you make one needs to consider the time it takes to make it.

Hope this Helps,

Matt Gerchow

For a major home improvement or renovation, a homeowner usually hires the services of a contractor to do the job efficiently and quickly. For a first-time homeowner, however, he would be surprised to know that there is a law that would attach his property to his contractor, a legal remedy known as mechanics liens. Although a mechanics lien is unavoidable, there are a few things a homeowner could do to protect his home.

The basics of mechanics liens

For every major contracting job that a contractor, supplier or worker engages into, the law permits him to file for a mechanics lien into the property of the homeowner. This lien serves as protection for a contractor in the event that a homeowner fails to pay after the completion of a project. Enforcement of a mechanics lien is usually done like a regular foreclosure proceedings. When the property is sold, the amount unpaid to a contractor would be taken from the sale.

Although a mechanics lien this is something good, especially to contractors, a homeowner may be placed in an unfavorable position in some circumstances. One instance is when a contractor hires a subcontractor or a supplier. Even though the subcontract or a supplier is under agreement with the contractor, under the law the subcontractor and the supplier can attach a lien to the homeowner’s property. This means that if a contractor failed to pay the subcontractor or a supplier even if the homeowner has paid the contractor in full, the subcontractor and the supplier may file to the court for the enforcement of a mechanics lien

How to protect your home

1. Hire a reputable contractor – Find someone with a good track record. Get the numbers, such as number of completed projects, number of pending projects, number of unfinished projects and number of cases field against a contractor. These figures will give a clear picture whether or not a contractor finishes a contract, pays his employees or subcontractors on time and avoids litigation by getting the job done.

2. Ask for a detailed agreement – Put into writing everything that needs to be repaired or done, including the timeframe for each work. Ask for the names, contact details and job description of each subcontractor and the expected period of work completion. This gives the specific numbers of key players in the project, and prevents the coming in of a new subcontractor without the knowledge of the homeowner.

3. Issue separate checks – A homeowner may issue separate checks for the contractor and the subcontractors, which is better than coursing every payment through the contractor. This ensures that every payment goes into the right hands.

4. Ask for receipt of payment – Ask the contractor as well the subcontractor for a simple letter that states they received payment for a specific contracting job. Say, for a kitchen improvement, the kitchen slab has been attached and the plumbing has been done. Pay for these first and ask for receipt of payment and do so again after the contractor is done with the kitchen cabinets, the floor tiles and the wallpaper.

5. Get liens wavers – If the contractor wouldn’t want the homeowner communicating with his subcontractor or supplier, the homeowner may ask for a lien waver from the subcontractor or supplier. This is to prevent them from claiming for a mechanics lien against the homeowner even after the homeowner has successfully paid the contractor in full.

Joe Cline writes articles for Guillermo Ochoa-Cronfel. Other articles written by the author related to Austin Realtor and Lakeway Homes can be found on the net. For more information visit at http://www.joecline.com/whowelike.php and http://www.affinityproperties.com/lakeway.php

DIY Alternative Energy – Are You Green Enough?

Alternative energy, solar panels, wind turbines – what do
they mean to you? For some these are just aspects of the
modern world that other people are involved in but that
don’t really affect them. For others alternative technology
lies at the very heart of the way they want to lead their
lives – drawing as little form the earth’s resources as
possible. It’s a spectrum that encompasses all of us.

The spectrum runs all the way from not green to dark green.
Let’s work through them:

1. You’re not green at all: For you, the green movement and
the ideas around alternative energy don’t really do
anything for you. It’s not really for you. You put all your
clothes in the dryer iresepective of the weather outside
and you use your big thumping SUV at every opportunity.
You’re happy to buy a takeaway burger and drop a whole pile
of trash into the trashcan without thinking about what
happens to it. You want to save money though, especially on
utility bills.

2. You’re a light green: You’ve thought about buying your
electricity from a green utility but haven’t made the
switch yet. If the weather is dry then you dry your clothes
outdoors. You put all your paper, card, metal and plastic
in the recycling bin. But you still drive your car all over
the place and hop on a plane without a thought. If you
could save money on electricity you’d definitely go for it.

3. You’re a mid-green: You’d like to have solar panels and
wind turbines, but you’re worried about the cost of
commercially available products. You recycle your packaging
but still enjoy a burger with all its associated trash.
You’ve sold your gas-guzzler and bought a small town car to
save on gas.

4. You’re dark green: You’re strongly committed to the
green movement. You holiday at home, you get rid of your
dryer years ago, you use a wood burning stove and grow your
own vegetables. You recycle your waste water for the
garden. You’d love to have solar panels and windmills and
sell energy back to the utility, but they’re just too
expensive. You sold your car and bought a bike.

What’s is the common thread that links them all? They all
want to save money. Well, whether you are not green at all
or light or dark green, there is some good news waiting for
you. It’s possible to save a huge amount on your annual
utility bills by fitting a collection of solar panels
around your house. I don’t care what shade of green you
are, you can save money, you can have the satisfaction of
building something worthwhile, you can reduce your carbon
footprint and maybe even make a few dollars too, into the
bargain. A DIY solar panel is the simplest way to save
money on your utility bills. So whether you’re a non-green
or a dark green it makes sense to take a close look at DIY
solar panels and windmills.

About the Author:

Discover how to construct your own solar panel and get free
design instructions for a solar water heater at
http://www.diyalternativeenergy.org

It’s easy to find good contractors… if you’re willing to pay an arm and a leg. Finding a good contractor who doesn’t charge like a lawyer, well, let’s just say it’s a little tougher.But it is possible, if you ask the right questions, which is exactly what we’ll help you out with.

Question 1: What’s the size of the job?

Bigger jobs require better contractors, period. If you have a leaky sink, call your favorite handyman and don’t sweat it, but if you’re renovating a shell, you’ll need someone with some serious experience, and manpower.

Question 2: Do you need to pull a permit?

If your job requires a permit, then you’ll need a licensed contractor, and they’re considerably more expensive than your handyman. Licensed contractors can pull the permits for you, but make sure you get copies of every permit they pull, because many contractors “forget” to pull them.

Question 3: Where does the contractor work?

We’re going to take the kid gloves off for a second here, and face the fact that some contractors do most of their work in the slums. These will be considerably less expensive contractors, and may be appropriate to hire if your property is on the wrong side of the tracks.

If you’re renovating a house in Yuppie-Land, forget using a slum contractor and shell out the extra dollars for someone who knows higher end rehabs. But either way, make sure you know what kind of contractor you’re dealing with, because you don’t want to over- or under-spend.

Question 4: How long has their career as a contractor been?

If you ask a contractor how long they’ve been in the business, they’ll all tell you that they’ve been renovating houses since you were in diapers. Obviously this is not true.

So, if you really want to know about the longevity of their career, ask them how they got into contracting. They won’t think to lie about it, because of the indirect nature of the question, but you NEED to know whether you’re talking to a career rehab artist or a sham dabbler.

Question 5: What kind of warranty will they provide?

Likewise, all contractors will tell you that they “guarantee their work” in vague terms, but ask for specifics. One year? Five years? A good contractor will always guarantee their work, for a certain amount of time, anyway.

Here’s the kicker: GET IT IN WRITING!

As a landlord, few people you have to work with routinely will frustrate you as much as contractors will. Establish a long-term relationship with several good, licensed contractors and several talented handymen, after trying out a lot of each, and remember that when you’re interviewing them, the more questions you ask the better sense you’ll get for their integrity and professionalism.
Gregory Davis is a real estate investor who has worked with dozens of contractors over the years. He also writes for a variety of online publications, including NuWire Investor and EZ Landlord Forms, an online resource for landlords and property management (http://www.ezlandlordforms.com).

In todays market, homes are taking longer to sell and the subprime fallout is going to affect home sales. There are still buyers out there and there are pockets of areas where homes are selling. I am in the process of rehabbing a house at the time of this article and have had over seventy interested homebuyers call or stop by before I was half way through.

There is no real magic to tell you about selling homes. The main thing is you have to realize that you have a product that everybody wants. Your product is the American Dream. In fact, the whole world wants to own their own home.

Therefore, if you have a home for sale, you must believe that everybody wants it. If everybody wants the product we are selling, how are we going to let them know we have a home for sale. The answer is marketing. We need to let the world know we have the American Dream for sale, and they should come see it. The following is a few ideas on how to market your properties in this slower market and how to get people out to see them.

FLYERS

Flyers are the most inexpensive way to market your properties. When I am out in the field looking at houses, I see many homes for sale in various neighborhoods. Most homes listed by real estate agents have a box on the For Sale sign containing flyers pertaining to that particular home. I always take one and add it to my collection at my office. When I am ready to sell a home, I look at those flyers and pick out some key phrases that appeal to me and use them in my own flyers. Most flyers are written by agents and they are good at what they do, so make use of their expertise. People today need storage space and cabinet space, so always mention those items. You should always include a picture of the home on the flyer. Make sure the house and yard are clean and take the best quality picture you can. Walk around the property and look for anything that you can mention in the flyer -bonus room, office space, big closets, etc. Mention the schools, shopping centers and how many miles to the nearest highway.

Once you have a good flyer, make fifty color copies or so, and distribute them all over the surrounding area. Start to make yourself aware of all the bulletin boards in the area. You will be amazed at how many there are. Grocery stores have bulletin boards and hundreds of people will see your flyers. How about libraries, Wal-mart, Kmart, hospitals, some banks, home depot, paint stores, auto parts stores, and don’t forget about churches, most churches have bulletin boards. If there are any colleges or schools, take advantage of that also. People like to live near these venues. Do you work or know someone who works at a big company?. I remember when I worked for Lockheed, they had hundreds of bulletin boards.

FOR SALE SIGNS

If you put a for sale sign in the yard and that’s all you do, probably the only people that will see the sign are people that live in the neighborhood. I start by putting a for sale in the front yard, then I place one at the entrance of the neighborhood. Then I go down the street and place one at the nearest main intersection. I like to put one at the exit ramps of the nearest highway entering the area. There are three exit ramps to my city and I put for sale by owner signs on all three exit ramps, with the words "open house’ along with the address of the property. You may be able to get signs at the dollar store. Always obey your counties sign ordinance or signs can be costly.

NEWSPAPER ADS

Don’t be to conservative with newspaper ads, I once ran an ad that had a special price, three lines three days, $19.95. I never sold a house with an ad like that. In the classified section of the news paper, you will see ten line ads written by real estate agents that say, "sweeping staircase flows down to beautiful marble foyer with high vaulted ceilings" or "weeping willow tree hangs over sunroom where you drink your morning coffee during the sunrise" Those phrases really bring the property to life don’t they? It sure sounds better than "3 bd, 2 ba, full ba, big ya, doesn’t it? Real Estate agents are trained to sell homes. They wouldn’t make any money if they didn’t. So, take notice of the way agents write ads and get some ideas. Read the classifieds at every opportunity and see which ads really catch your attention. Learn to paint a picture of the property through your ad writing.

You may want to include the address in your ad, also you could mention the schools, shopping, public transportation and how close to main highways. If you are having an "open house" mention that also.

OPEN HOUSE

The"open house" can be a good way to sell houses. Try to have someone at the house every weekend. More homebuyers are out looking for houses on weekends than you ever thought possible.

On Friday, You should make sure the house is spotless. Cut the grass with a vacuum mower. Edge the yard and all walkways and driveways. Get a yard blower and blow everything clean. On Saturday, invite some friends or relatives to stop by if you can, I like to have cars in the driveway and street. Also consider having a loan agent to pre-qualify potential homebuyers. I have found they will hang out for no charge and are very helpful. Turn on every light and have the ceiling fans on low speed. Play soft music if possible. Bake some cinnamon rolls to fill the house with aroma. I discovered this at the airport where I can sniff out a Cinnabon shop a mile away. Set up a table in the house with community information, a list of schools,, flyers, blank contracts, bottled water and some snacks. Always have a sign in sheet to get names and phone numbers of the potential buyers.

DATABASE

When you hold your open house, always have a sign in sheet or notebook. Get the names of every person who comes to your open house along with their phone number. Try to find out what their wants are in the home they are looking for. This will help you when buying investment homes in the future that you may be able to do a quick flip. During your open house, you can generate quite a few names and numbers of people looking for homes in that area or zip code. You can call them next month when you buy your next investment property. When you hold an open house, it’s not uncommon to gather quite a list of potential buyers. If you know all the buyers and what they are looking for, you should have no problem making money with all the creative techniques you have been learning. You will find that your database pays off when you buy a distressed property, fix it up and call twenty or so people and eighteen of them still haven’t found a home. So get them over to the next one.

Let’s say you were talking to Bob, Bob says he is looking for a three bedroom two bath house with a two car garage in a certain school district. Next month, when you are looking for deals, you already have a possible buyer even before you purchase it. The database is a must have asset to an investors business.

If you still find it hard to sell the home, try the internet. There are also companies that will auction the house and claim they can get at or near full price within ten days. You may want to offer bonuses., A new plasma television, stereo etc. Or you can offer a discount if they sign today. Don’t forget about lease options and rent to own as a last resort.

Here are some do’s and don’ts to assist in your investment choices.

DON’T: ( these are only my opinions)

• Buy rehabs near brand new subdivisions with lots of unsold houses. You will spend more money on renovation costs to compete with the new homes.
• Buy houses with steep driveways
• Buy houses with power lines in the back yard.
• Buy houses without knowing you can afford the holding costs if it takes longer to sell. Always have a back up plan.
• Buy houses without a complete title search.
• Buy houses with polybutylene plumbing unless you can justify replacing it.

DO:

• Have comps or appraisals available to justify your selling price
• Offer a one year home warranty when selling your rehabs
• Have a recent property inspection available at your open house, giving the house a clean bill of house health.
• Have the heat and air ducts cleaned by a professional service.

Tony Youngs is the author and trainer of the Foreclosure and"Hidden Market" system for acquiring distressed real estate. For more information, you can contact him at his website www.tonyyoungs.com

WHY INVESTORS REHAB, INC. IS DOING MORE DUE DILIGENCE ON REPAIR ESTIMATES.

By Cecelia Lewis

You may have noticed that we at Investors Rehab, Inc are doing EVEN MORE due diligence when it comes to Repair Estimates on our homes for sale. 

We started doing this earlier in the year for several reasons:

1. We realize that in this market getting one repair estimate is not enough.
2. We realized that it creates a more competitive and honest assessment of the necessary repairs to our homes for sale.
3. We are able to get a clear and complete understanding of what repairs are needed to make the home sell quicker or rent faster for our Buyer.
4. We are able to give you our expert opinion regarding who will be the best contractor for the job.

For every home for sale we put on our website you will now find the following:

1. THREE repair estimates by licensed and bonded contractors – remember, price does not always dictate who the best contractor for the job is.
2. A full CMA – this helps to see what comparable properties are selling for in the last six month (within a mile of the home) and how long it should take to sell the property we are listing.
3. An appraisal – this will give you the After Repair Value of the property
4. Of course our Contract Package and Lead Based Paint Brochure are always on the site as well.

Always keep in mind, if you know the necessary repairs as well as the ARV, you will always know if you have a deal.  It is our job to do the hard work for you.  This allows your process of buying our properties that much easier for you.

If you wish to sell a property to us you MUST own it or have it under contract before we can do anything with it.  Once you have the property “locked up,” please submit it to me via my email: Cecelia@investorsrehab.com . Remember to visit our website, www.investorsrehab.com , and click on “Submit a Property.” This will show you how we buy properties.  This will be a great advantage for you.

We at Investors Rehab, Inc. are always looking to improve and change with the market.  I believe this is why we continue to have success.  If you would like to buy a property from us or take a look at what we are currently offering for sale, please visit our website at www.investorsrehab.com

Are You Licensed?
Most states require contractors, even sub-contractors to be licensed. Make sure your contractor is properly licensed. Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of it. Remember to check the expiration date. Being licensed is the law. If a contractor cannot produce a valid license, Do Not Hire Him! You can check the contractor’s current licensing status with your states Secretary of State.

Do You Carry General Liability Insurance?
Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing, and/or repairing any damage that occurs. Anyone can say they are insured. Make the contractor prove it by having a certificate of insurance.

Do You Carry Workers’ Compensation Insurance?
Make sure your contractor carries workers’ compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor does not carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor, or any of his employees on your property. If the contractor is a one-man operation, he can be exempt from having to carry workers’ compensation insurance. If he is doing so legally, he can provide you with a copy of his Construction Industry Certificate of Exemption from Workers’ Compensation.

This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers’ compensation insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractor’s workers’ compensation insurance and the sub-contractor gets hurt, again you may have to pay the medical bills. In short, it is much safer to deal with a fully insured contractor.

Do You Offer Financing?
Many Contractors are lender-approved contractors. They have been approved and investigated by lenders as being financially sound, maintaining satisfactory relationships with suppliers, satisfactory credit and no outstanding complaints at the Better Business Bureau.

Are You a Member of NARI or NAHB?
NARI stands for the National Association of the Remodeling Industry and NAHB stands for the National Association of Home Builders. It’s always a good idea to consider hiring a NARI or NAHB contractor. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated.

Will You Pull All the Required Building Permits?
Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to “code.” Also, many homeowners insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the “hassle” with the inspectors. Some contractors may ask you to get the permits. This could be a warning sign that they are not able to pull the permit because they are either unlicensed or the work is outside of their license. A reputable contractor will permit every job where a permit is required.

Do You Guarantee Your Work?
Your contractor should guarantee his work for at least one year from date of completion. They should also include any warranties from the material used if applicable.

Who Will Be in Charge of the Job?
Make sure the contractor or his foreman is on the job whenever work is being performed-especially if sub-contractors will be used. The responsible party must be familiar with every aspect of your project. You cannot be worried about what is going on when you are not there.

Will You Provide Me with Written References?
A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several customer references from the last 6 months to one year. Ask for the name of the contractor’s accountant or banker. You want to ensure the contractor is financially sound and will not be declaring bankruptcy in the middle of your project.

How Do You Handle “Dirty Work”?
Construction is dusty and dirty! It gets everywhere, especially if any sanding is being done. Make sure the contractor will make an honest effort to keep the dust contained, or notify you when the heavy dust generating operations will take place so you can place sheets over furniture or move sensitive belongings. Make sure the contractor agrees to sweep up and place all construction debris in a predetermined place or refuse container at the end of every day.