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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/
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The Wall Street Journal New Jersey DOI mulls $250m commitment to Bain real estate fund IPE Real Assets Alliance home sells for more than $400,000 The-review Ryan Cos. brings on exec to lead health-care real estate efforts across Southeast - Triad Business Journal The Business Journals Solano Real Estate Transactions: April 26, 2024 | Solano Business | dailyrepublic.com Fairfield Daily Republic Welcome to Real Estate Friday! theberkshireedge.com Danielle Lombardo Appointed as Chair of Real Estate, Hospitality, and Leisure Division at WTW - Risk & Insurance Workers Comp Forum Collins: The changes in the real estate industry you need to know - San José Spotlight San José Spotlight Richland County OH real estate transactions, April 15-19, 2024 Mansfield News Journal Vainshtein joins Metrowest Commercial Real Estate : NEREJ New England Real Estate Journal Online Top 23 real estate apps for agents in 2024 HousingWire RI real estate transactions: What homes sold, for how much and to whom The Providence Journal Just $5.4B in U.S. Office Real Estate Sales in Q1: Report Commercial Observer The Superior Nature of Industrial Real Estate on 495 - by David Skinner New England Real Estate Journal Online Margot Spera Joins Alliant Specialty as Senior Vice President in Real Estate & Hospitality Division - Risk & Insurance Workers Comp Forum Fresno real estate spat's solution was in the works. Then one party's demise The Business Journal REAL ESTATE | Spring Storewide Sale underway at General Store Antique Mall in Kewaskum, WI washingtoncountyinsider.com A+ Real Estate: See How Much It Costs To Buy a Home in the Nation's Top 10 School Districts Realtor.com News This weekend's Open Houses in Altadena and beyond! The Eastsider Real Estate Broker Sentenced for Embezzlement, Faces $2 Million in Fines and Restitution Santa Barbara Edhat Downtown commercial property fallout not as bad as people think, Kaegi says Crain's Chicago Business A Recent Settlement Could Change the Way Real Estate Agents Are Paid Milwaukee Magazine Real Estate Forecast Next 5 Years: Steady Growth or Price Correction? Norada Real Estate Investments Rockford Is Now America's Top Housing Market After an Improbable Turnaround The Wall Street Journal Where the Newest NFL Stars Are Moving: Which City Has the Best Real Estate Prospects for 2024's Top Ballers? Realtor.com News Homes for sale at record high prices Crain's Chicago Business Galvanize Real Estate Acquires First Asset in Pioneering Profitable Decarbonization Strategy Chronicle-Tribune Manhattan Real Estate Update: "Embrace the Boredom" westsiderag.com reAlpha Tech Corp. Launches Claire, Real Estate's First AI-powered, Zero-Commission Smart Buyer's Agent Business Wire Homes for Sale in Manhattan and Queens The New York Times National Association of Realtors' $418M settlement approved by judge, bringing changes to homebuying process Chicago Sun-Times Coima selected for €500m Intesa Sanpaolo real estate mandate IPE Real Assets Ask The Expert: Vienna shares updates on real estate relationships, fees Niagara Frontier Publications Law Firm Real Estate Report Law360 real estate market and insurance Sacramento Appraisal Blog Real Estate Roundup: 'The Cove' in Hume sells for nearly $19M and more Fauquier County transactions Fauquier Now JWB Real Estate Companies Announced 2024 Home Giveaway FirstCoastNews.com WTLV-WJXX Yo La Tengo, Real Estate and more to perform at Woodsist Festival in Accord in September The Daily Freeman Austin real estate: Fund launched to help affordable housing projects The Business Journals Cohome Launches Innovative Fractional Ownership Marketplace to Transform Real Estate Investment for Retail ... 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