They laughed when I said I was buying moldy houses, but…then they cried when they saw the bottom line on my bank accounts!
Let me show you how to profit from the foreclosure boom! Buy moldy houses that can be had for pennies on the dollar and repair them in bulk for a handsome profit!
The REO mold can literally turn to gold!
At the same time, the properties of REO mold can present great challenges for all parties involved, if not handled by a mold professional with the utmost finesse and a common sense approach to permanently eradicating mold and assuming potential detrimental liability for the demand.
REO property stands for real estate ownership, which means bank ownership in simple terms. Bank properties often sit vacant for twelve to twenty-four months…until all of the sheriff’s challenges to the sale are over and the bank receives clear title and assigns the property to a real estate agent for resale. In these empty houses, the smallest problem can quickly multiply and get out of hand when it comes to mold and water damage. When there is no homeowner to call a plumber or roofer. When there is no electricity to run a sewage pump or sump pump… or in humid climates there is no electricity to run the air conditioning, a small problem can magnify and then get out of control… There has been Black mold is something of a media freak and can scare off buyers and drive down real estate prices if infested.
It can also be a legal liability! Lawyers are calling mold the “new asbestos”!
I have been treating severely mold damaged properties for over ten years for reputable banks and mortgage providers, relocation companies, property management companies and service companies. I have worked for Fannie Mae, Ocwen, the Veterans Administration, First Merit, Fifth Third, HSBC Household, Wells Fargo, Westfield Companies, Car Owners, Nursing Homes, City Halls, Churches, and tons of regular landlords. REO property presents a challenge for the contractor because there is a lack of historical information available to the contractor about past water conditions or problems that occurred in the past. Where the current leaks are and what other hidden sources of mold exist can be difficult to discover and provide assurance that all mold has been eradicated.
When a house is unoccupied and serious colonization begins, there can be many, many hidden secondary infestations due to the movement of water in the air in the form of vapour.
Fortunately, we’ve become experts at handling exactly these types of projects… There’s only one way to become an expert at this specific type of abandoned house remediation challenge and that’s… lots and lots of practice!
We have the knowledge because we have gutted countless REO mold properties stripped to the studs! When the flooring and sheetrock have been removed, the path of penetration and passage of water becomes apparent. We have expert project coordinators with specific knowledge gained from many varied projects, virtually any type of water problem you can imagine.
We’ve had everything from animal urine inside the walls as a water source… to six feet of standing water. As I began treating these vacant homes, I began to realize that there was a real need for a competent, qualified, and experienced mold cleanup. I also discovered that there was enormous profit potential from investing in these abandoned, stigmatized and moldy houses…
The recent housing debacles and foreclosure frenzy have been creating these musty houses at a record rate.
The good news is that we have only scratched the surface… We are now dealing with homes that were foreclosed on 18 months ago, which means there will be a real opportunity for serious investors for some time! Let me tell you a little story about a recent project we were looking for for a big bank…the house had been repossessed about 18 months before. Because it was empty, there was no power to the basement sump pump. You could tell the basement had been beautiful… There was a second kitchen, a giant fireplace, a bathroom and two offices or bedrooms… There was a time when it was nice… But when I got there it looked like something out of a Steven King novel. The walls, ceilings, and floors were covered in toxic black mold! The kitchen cabinets were covered in green fuzz and were beginning to warp out of control. Parts of the ceiling were also on the ground.
And they were even growing mushrooms right out of the drywall!
I made an offer to the bank to correct the mold problem and put the house in salable condition for around 8k to completely eradicate any traces of mold. I know it may sound expensive, but let me get to the exciting part…the math! In this particular case, the bank decided to forego the remedy… They immediately dropped the price of the house by over 50k, fifty thousand dollars!!! That meant a savvy investor could GET $42,000, forty-two thousand dollars to HARLEY by hiring me and doing nothing else to fix up the property!
It’s like walking down the street and looking down and finding forty grand!
I was too busy to buy this property for myself so I posted it in my Buyers Club Newsletter and one of my investor friends made over $30k in less than 6 weeks! It is also possible for regular people to buy their dream home and if treated properly you can be sure that the mold problem is gone forever.
One of the areas where we have had a lot of experience is shoddy, unsuccessful and ineffective attempts to clean up mold. We’ve had to recall many failed mold projects done by investors and do-it-yourself homeowners to fix failed projects that a competitor messed up. Unfortunately we have had to revisit many projects. Last year we re-treated over forty “professionally rehabbed” penthouses alone!!!
Sadly, we have also come across the other side of the story…. Too many times….
the sick renter child or the family who falls victim to unethical mold treatment by a greedy investor who thought he knew enough to handle the mold project himself. They figured a little effort and a lot of bleach was all it took! Unfortunately, we often get the calls six months after the house is sold. The new owners have been ill since they moved into their dream home… When they went on vacation, their health improved… but worsened when they returned. One client’s daughter developed acute onset extrinsic asthma and others even much worse!
Mold is one of the most contentious (suit prone) areas of the law and should definitely be handled by a professional for this reason (and many others).
However, a properly treated and cleaned old moldy house will be for sale. The most important factor is the ability to provide the Buyer with a certificate and guarantee that the mold has been eradicated and will not return. I have helped countless buyers and sellers come together. Having a professional guarantee has often been the key to closing the deal.
Mold can be turned into gold.
Step One: Locate a moldy property.
Step Two – Get an inspection report and quote from a certified inspector.
Step Three: Pre-estimate the cost of the job and negotiate a great price with the bank.
Step Four: Have the property treated and repaired.
Step Five: Flip or Rent for a handsome profit!
Following the National Mold Protocols is not even a guarantee that the property is safe and clean. This is why we recommend that you follow a much stricter military protocol for cleaning! The military tested how to clean a home or commercial building that had been contaminated by spore-based pathogens, such as toxic mold. They conducted the study at Los Alamos National Laboratory after the anthrax attacks on the United States Post Office. They concluded that the National Guidelines followed by most mold radiation contractors are inadequate to completely eliminate a mold problem. That is why we recommend incorporating the use of a gas to fully complete the decontamination process. We ALWAYS recommend that you follow the strictest military guidelines for your projects, which means you can be sure that the problem has been permanently eradicated.
Remember, Reo Mold houses can be turned straight to Gold with the help of a friendly and competent mold professional!