![]() | |
![]() | |
![]() |
Real Estate Information |
|
![]() |
Real Estate Investing - House Problems
Houses can have lots of problems Real estate investing requires expertise in recognizing these problems and the costs for repair. Sometimes you stumble onto a jewel investment by discovering a house where mom was an excellent housekeeper, and all that's necessary is minor cleanup of the premises to prepare for selling. But the truth is that most people don't even sweep the floor when they move after the house is sold. And sometimes the house they leave behind is a wreck. If a yard looks trashy and overgrown, you know how to pick up the garbage and mow. If the walls look drab and shabby from years of neglect, you know how to replace new wall paneling or repair holes with wallboard mud. If these basics are not understood, you can always get a quick lesson at your neighborhood Home Depot or Loew's. But zilch experience is necessary for slinging a paintbrush, unless you are just sloppy. Paint is the easiest of options in giving fresh renewal to property. Cosmetic repair is simple and easy. You can either do it yourself or hire a handyman. Houses that really only need some yard work and a few gallons of paint are readily found in the real estate buyer's market. But these houses tend to be far from deeply-discounted or bargain-priced investments. Some house problems constitute severe potential pitfalls in real estate investing. The most critical problems are foundation irregularities and mold. I inspected a house recently that had serious foundation problems. My attention was first called to the entrance steps with broken brick due to shifting of the house on its foundation. As I walked around the inside of the house, I saw that the sheet rock had cracked in several places on the level above the entrance steps. What was obvious to me was obvious to every other buyer who had seen the house, which explains why the property had been on the market for over 200 days. So as this red flag went up about the foundation problem, my curiosity was also raised about the cost of repair. I know nothing about foundation problems, and I would never tackle such a problem on my own. But I knew there were specialists in the area with expertise in foundation repair. So, I got a couple of estimates before deciding if the purchase price was fair. Mold!!! One of the most serious problems in buying any house today is mold contamination, especially in the southeast. This is a recent problem that we never experienced in the past with such prevalence. Let me warn you: repairing a mold-infested house can cost you big bucks. Even in excess of $100,000! An infested house must first be tested by a certified lab to ascertain the extent of damage. A third-party contractor usually takes responsibility for repair after the initial test. Then the testing lab must re-evaluate the premises after repair to confirm whether toxicity levels have been reduced to acceptable standards. Then, and only then, can you re-enter the property to make modifications or paint. You are in a heap 'o trouble, boy, if you buy a house WITH MOLD, unknowingly or knowingly, and if you fail to remedy the problem or try to sell without disclosure. Just write it off as a bad experience and bad investment if you buy without taking remedial costs into consideration. Mold is a serious problem in today's housing market. This warning doesn't mean you should not buy any house with mold infestation. You can obtain firm bids (not estimates) for repair on some situations. However, damage can be so severe and widespread that even mold-removal firms will not even quote a firm bid! Factor the remedial repair into the buying price and the selling price. Be prepared, however, that it just won't work in some cases. Mold is damaging to health. Some people are more sensitive to mold than others. Mold replaced the asbestos scare of the '70s and '80s when Texas homeowners sued insurance companies for millions of dollars over mold damage. The mold problem has migrated from the South and is moving into northern states. Many Alabama insurance companies went out of business because of the mold problem, and those insurers left usually refuse to insure any house with mold history. Don't let mold catch you with your pants down! Most houses have some kind of problem or problems. Learn to distinguish between the cosmetic and serious problems, and recognize that solutions are usually available for either. You, the real estate investor, must become a problem-solver of house problems. Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. http://www.CashinHouses.com/ He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.BigMoneyinFixerUppers.com/nomoneydown/flipping.html/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" at http://www.AAREIT.com/
MORE RESOURCES: Bitcoin Is Draining The Value Out Of Real Estate Bitcoin Magazine July Economist Snapshot: What Will the Big Beautiful Bill Mean for Commercial Real Estate and Housing? Urban Land Magazine Homes Are Flooding Onto the Market in Las Vegas as Retirees Flee the City and Investors Cash Out Realtor.com These are the forgotten NYC nabes that became real estate hot spots in the last decade: report New York Post Florida Sees Surge in Commercial Real Estate | Florida Realtors Compass invests in data with hiring of Altos Research’s Mike Simonsen Real Estate News by RealEstateNews.com Scammed, Shamed and Deepfaked: Real Estate Agents Speak Out on the $15M Crypto Con National Association of REALTORS® Real Estate Announce A Celebration of Atlas with 2025 live dates Northern Transmissions 7 rules for executing a successful brokerage strategy Real Estate News by RealEstateNews.com Realtor.com parent acquires private-listing friendly Zenlist Real Estate News by RealEstateNews.com “Right Place, Right Time”: How Libby Sosinski turned rocky start into $26M real estate career HousingWire Real Estate Announce A Celebration of 'Atlas' - The Eleven Year and 7 Month Anniversary Tour Domino Recording Company Real estate broker analyzes impact of FARE Act on rental trends Spectrum News NY1 Tariffs, Weak Canadian Dollar Cool U.S. Real Estate Demand from Canadians The World Property Journal Real Estate Announce Atlas "Eleven Year and 7 Month Anniversary" Tour Consequence of Sound JM Realty Associates, a Fort Wayne-based real estate firm, is warning people of an account impersona 21Alive Third Major Boston Building Heads to Auction Amid Market Shifts Boston Real Estate Times Drake Real Estate Partners closes largest fund yet after pivoting to institutions Private Equity Real Estate | PERE Worst Florida Housing Markets Facing Steepest Price Declines in 2025 Norada Real Estate Investments County's real estate markets shifting toward buyers Douglas County Sentinel Alchemy Real Estate Advisors sells Maine La Quinta Inn hotelmanagement.net A landmark Lacona business remodeled into family home — with a concession stand The Des Moines Register Putnam County Treasurer reminds residents of real estate tax deadline Hometown Stations Florida Trend Real Estate Florida Trend Top Dog: Chad Phillips’s Plans for Running Nuveen Real Estate Commercial Observer Navigating the Tariff Surge: Opportunities in Logistics Real Estate and Supply Chain Resiliency AInvest Related Beal Donates $200,000, Considering $200,000 More to Strengthen New England’s Fishing Community Boston Real Estate Times Jake Paul Closes One Of The Largest Real Estate Deals In Georgia History With $39 Million Purchase of 5,600-Acre Ranch Yahoo Finance Logistics resilience drives Q2 industrial real estate stability amid easing supply surge, reports Cushman & Wakefield logisticsmgmt.com Real estate inquiries by wealthy New Yorkers into Florida properties jump 50% after Mamdani primary win Fox Business More Americans Are Buying Real Estate in Barbados Caribbean Journal Adams' new campaign HQ opens in SL Green building amid key support from real estate giant New York Daily News HGTV’s Egypt Sherrod Shares Cryptic Message After ‘Married to Real Estate’ Cancellation tvinsider.com Golfer Bryson DeChambeau's Massive Real Estate Investment Has Eaten Up Most Of The $125 Million He Got Paid To Switch Tours Yahoo Finance International Buyers Purchased $56 Billion Worth of U.S. Homes from April '24 to March '25 National Association of REALTORS® Inside Savannah Homes: Classic Gordonston residence with amazing curb appeal - Savannah Morning News Inside Savannah Homes: Classic Gordonston residence with amazing curb appeal Savannah Morning News Adam Sherriff-Scott Joins Nicola Real Estate to Lead Leasing and Portfolio Strategy in Toronto GlobeNewswire Real Estate announce 'A Celebration of Atlas - The Eleven Year and 7 Month Anniversary Tour' BrooklynVegan Ballantyne Tower sells for $71.5 million as investor confidence returns to corporate real estate WCNC Lone Wolf Technologies Unveils Deal Tracker to Streamline Real Estate Transactions The Software Report HKS Real Estate Arranges $25M Construction Financing for Dual-Branded Hotel in Antioch, Tennessee REBusinessOnline Tarek El Moussa Shares Real Estate Advice for Home Sellers EntertainmentNow Professional Services Automation Powers Real Estate Efficiency in the USA, Led by IBN Technologies openPR.com Realtor.com's Zenlist Acquisition: A Strategic Move to Dominate the Real Estate Tech Landscape AInvest Who will buy this Oregon vineyard estate for sale at $2.85M with historic zinfandel vines? OregonLive.com Trump Calls Gaza 'One Of The Worst Real Estate Deals Ever Made': 'They Gave Up Oceanfront Property' Latin Times 'Married To Real Estate' Canceled After Four Seasons On HGTV, Say Hosts Egypt Sherrod & Mike Jackson Deadline Compass to share exclusives — if brokers, MLSs play by 2 rules Real Estate News by RealEstateNews.com Chris Wallace home sale leads to speculation about Zuckerberg compound The Business Journals |
![]() |
![]() |
![]() |
RELATED ARTICLES
A Possible Bargain: Foreclosed Properties In the superheated San Francisco Bay Area property market, foreclosed properties are available at as much as 40% below market value, writes Srini Saripalli.The last few months of a calendar year are considered sluggish for transacting real estate, but Silicon Valley seems to be an exception to this. 3 Strategies For Buying Property With No Money Down Everyone has heard a story or read about someone who bought a property without paying a single dime as a down payment. But how does this work?There are several "classic" methods commonly used to purchase real estate with no money down. Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit One of the quickest ways to real estate profits is through preforeclosures. What is a preforeclosure, exactly? A preforeclosure takes place from the time the bank gives notice of default to the time the house sells at auction. Real Estate Web Design - 3 Items You Must Include on Your Site Real estate web design requires you to do things a little bit differently because you are selling either your services or actual homes, so there must be several things present on the web page to make it user friendly. Unfortunately, many real estate web sites are poorly designed, ask visitors to supply tons of personal information before being able to view any information, don't provide enough information not to mention photos, and are all around a pain for many visitors. RESPA: The Real Estate Settlement Procedures Act The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. One of its purposes is to help consumers become better shoppers for settlement services. Tax Deferred Exchanges of Investment and Business Real Estate The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034 exception is gone. FSBO: For Sale By Owners Chapter Two Sheriff's Deputy Ted Rasmussen was thinking about Carrie-his pregnant waitress problem-when he sighted the traffic disruption meandering near the yellow line on Bay Street. A Bremerton merchant had called the Sheriff's emergency number reporting a wet morning commuter mess. Selling A Home - What Attachments Stay or Go? The home selling and buying process can be confusing. This is especially true when it is a FSBO (for sale by owner) operation. The Ultimate Short Sale Secret Buying foreclosures can be extremely profitable for real estate investors. However, most of these homeowners are mortgaged to the hilt. Real Estate Investors: How to Get a Powerful Marketing Education for Free I am a total geek.A few weeks ago, late at night, I wasn't in the mood to go to bed yet so I turned on the TV. Market Reaching its Peak I do not profess to "Know" what the real estate market will do in the next year or two, but I would like to share some information with you that might help you in making decisions regarding buying or selling property in today's market. The following information relates to the types of mortgages that are currently being taken out by those who are currently purchasing or refinancing homes. Customer Service - The Real Estate Revolution Traditionally, real estate has been viewed as a sales industry. But perceptions are changing. Investment Real Estate Secret: Buy a House Today, With No Money Down If you've read my article "Purchasing Property With No Money Down. . Home Buying - School District Issues A good school district is a key factor in home buying if you have kids. It can also be a positive selling point when it comes time to sell your home. The Secret To Marketing Your FSBO Home For Sale You're ready to put your home or land (house, townhouse, condo, apartment, farm, ranch, finished lot, raw land, etc.) on the market as a FSBO (for sale by owner). The Professional Investors Plan The art of using high-leveraged activities.Here I would like to make just a few suggestions that will hopefully save you from wasting years of hard effort only to learn in the end that had you invested using a better strategy, you would have realized more profit, happiness, satisfaction, control and free time as a result. How to Create Cash Flow Out of Thin Air! Want to see a trick every real estate investor will love?From the Desk of Thomas KishCrazy as it may sound.. Maui Realtors: What You Need To Know Maui is a great place for families of any size. However, before you plan a move to Maui and contact those Maui Realtors, there are some considerations that you should take care of. Real Estate Investing Myths That Steal Profits From Your Pocket One of the things that distresses us about our industry is the amount of wrong or incomplete information available to investors. Some myths block what otherwise would be a great deal, while others would have you believe that a bad deal is actually great. Tax Free Exchanges: Watch out for the New Residence Rules On October 22, 2004, President Bush signed tax legislation that contained a provision affecting Internal Revenue Code section 1031 (the like-kind tax-free exchange rules).Under this new provision a taxpayer who exchanges under Internal Revenue Code section 1031 into a rental house as a replacement property for a previous investor property and later converts it to his or her primary residence, is not allowed to exclude gain under the principal residence exclusion rules of Internal Revenue Code section 121, unless he/she sells the property at least five years from the date of its acquisition. ![]() |
home | site map |
© 2006 TIGER MEDIA |