Are Your Offers Getting Rejected? Check These 3 Items Immediately

We have been training new and seasoned real estate investors for over 16 years.  We have seen a lot of the things that will hold people up in their real estate business.  We have compiled a list of 3 of the most common mistakes that most real estate investors will make when they are making their offers.

  • You are making the wrong offer on the wrong property in the wrong market.  You will want to refer back to this article  to better understand what we are talking about here.
  • You have made a mistake calculating the ARV (After Repair Value) and the repair cost estimate.
  • You are using the wrong Purchase Contract and contingencies for that market.

Normally, you will see that one of these mistakes, if not all of them have been made resulting in your offer being rejected.  Keep in mind, the more competitive the real estate market you are working in, the tighter and more accurate your offers HAVE to be to get your aggressive offers accepted.


December 31, 2016 / by / in , ,
3 Main Categories Of Cash Buyer You Will Find in Any Real Estate Market: Where is the Money in Today’s Market?

Not all cash buyers are created equal.  Yes, they all buy real estate in some form or another, but that is about as similar as each of these types get in any real estate market.  They evaluate properties in a variety of different ways and they look for different returns.  Some cash buyers are very creative, while others are implementing a more traditional approach to profiting from real estate.  Let’s get started by identifying the 3 main categories of cash buyer of residential real estate.

  • Rehabbers
  • Cash Flow Investors
  • Landlords

In many markets, you will find that Rehabbers are having a harder time finding properties that have a large enough spread for them to buy, rehab, and resell.  It is occurring due to the lack of inventory available in many real estate markets throughout the USA.   Most rehabbers are still trying to buy at 70% or 75% of ARV minus repairs.  If they are targeting properties on the MLS, they are hard pressed to find large quantities of those deals in a lot of real estate markets.  They will usually try to flip these properties within 3 to 6 months.

Cash Flow Investors are finding it a bit easier to find properties that meet their criteria than Rehabbers.  The reason why Cash Flow Investors are finding it easier to make a profit, because they are selling their properties in a future real estate market.  If they do a lease option, they are setting the option to purchase for one to three years out, which is in a different real estate market.  If real estate values continue to appreciate then they can sell that property for a nice profit in the near future.  If they do seller financing, they are selling the property in todays market, but the borrower will need to refinance the property in 5 years or so, due to a balloon coming due.  Thus, the borrower will need to refinance the property in a future real estate market and for an appreciated price.  As you can see, they could buy today for one price, but they will sell at a future value for a nice profit spread.  The Rehabber buys and sells in the same market, so they don’t have the same type of spread.

Landlords buy properties based on the net cash flow the property produces rather than just  current sold comparables.  If rental properties are cash flowing well in the area and expenses are generally low, you will find that Landlords will being paying market value or higher than market value for their rental properties.  Landlord buy based off of cash flow and certain returns per year.  Typically, the Landlord is not going to sell the rental property for 5 to 30 years from now.  Thus, they will be selling in a different market too.

Hopefully, you can see the opportunities in what I just wrote above.  The cash buyers who are selling in future real estate markets are the ones who should be the main targets and the main people making up your cash buyers list in todays market.  They are the ones that will be buying higher and leave enough room in the deal for a wholesaler to still make a profit.

January 19, 2015 / 3 Comments / by / in , , , ,
Do You Know What To Look For When Evaluating The Gutters & Downspouts on Your Investment Properties?

Gutters and downspouts protect the walls of an investment property from water, which would ordinarily run off the roof. This water can damage the wall surfaces and cause localized erosion at ground level and allow water to go back into the foundation, house, or basement.

The most important function of gutters and downspouts, however, is to help ensure a dry basement or foundation. Regardless of the type of foundation wall, there is always the possibility for water penetration. Therefore, the less water there is in the soil near the foundation, the less likelihood of water penetration into the basement. Gutters should collect all water runoff, and downspouts should discharge the water into proper drains or onto the ground a good distance away from the foundation walls.

Most investment properties have gutters attached to the fascia board at the edge of the eaves. In some of these investment properties, gutters are integral to the design of the eaves. The two most common sizes of gutters are four-inch and five-inch widths. Four-inch gutters are acceptable for controlling the run-off from relatively small roof areas. However, five-inch gutters are preferred because of their additional capacity. Five-inch gutters are also less likely to allow water to overshoot the gutters when the water is draining off a steeply pitched roof. The design and slope of the gutter system is crucial to adequate run off and prevention of water running back into the investment property.

Common Problems With Gutters

  • The most common problem with most gutters is that they leak. Leakage will occur with galvanized gutters as they rust through. Eventually, holes can develop in copper gutters as well. All types of gutters are prone to leakage at the joints. Missing end caps are another common source of leakage. Leakage can cause considerable damage to fascias, soffits and walls below.  Seamless gutters have become more common to limit the amount of leakage that can occur over time on any investment property.
  • Gutters often become loose and require resecuring. This is normally due to improper fastening during original installation or damage caused by ice during winter months.
  •  Gutters and downspouts suffer from mechanical damage due to ladders, tree limbs and the like. Gutters should slope towards downspouts so as not to hold water.
  • Gutters often clog with debris. Sometimes, screens are installed to prevent leaves and twigs from getting into the troughs. These can become loose and fall out, and they also make proper cleaning difficult.

Common Problems with Downspouts

  • Downspouts are sometimes not secured correctly to the fascia. They also tend to split open at the seams (from freezing). The seam is usually on the same side as the wall.
  • Downspouts along driveways or sidewalks are sometimes crimped and cause blockages.
  • Galvanized steel downspouts often rust near grade level or where blockages have occurred
  • On many houses, the number of downspouts is inadequate. As a general rule, a downspout should be provided for every 40 feet of gutters.
  • Downspouts become disconnected from gutters, or get plugged with debris. Special screens are available for the top of downspouts to keep debris out. These screens must be cleaned regularly.
March 20, 2013 / by / in , , ,
What are the different types of roofing material that can be found on a roof of a home?
Roofing Material Types

Roofing Materials

There are a variety of different types of roofing materials that can be used to protect the roof a home.  Some materials are better suited for certain climates over others, such as clay tiles perform and last a lot longer in hot, dry climates than cold, icy climates.  The lifespan for some of these materials is longer than others.  The longer the material will last typically the more expensive the roofing material will cost to purchase and install.  In most cases, the natural roofing materials will last longer and cost more to buy and install.  Here is a list of some of the typical roofing materials you will come across installed on properties you consider buying:Composition shingles – Composition shingles are used on homes all over the country and are one of the most popular roofing materials because of their affordability, durability, and ease of installation. The most common types of composite shingles used today are made from asphalt and fiberglass and have an average lifespan of 15 to 30 years; however, prices and lifespans vary depending on the grade of shingle.

Additionally, they are low-maintenance, easy to repair, and typically offer Class A fire protection. On the downside, composite shingles can blow off during high winds and can be damaged from ice. Also, they do not offer as much insulation as some other materials and are the least eco-friendly of all shingles (especially those made with asphalt).

Recycled synthetic composite shingles – synthetic varieties made with a combination of recycled materials, such as plastic, rubber, fiberglass and wood. Many resemble slate, clay, or cedar shakes and can last as long as 50 years with little upkeep. Synthetic shingles are tolerant of foot traffic, are relatively easy to install, and lightweight.

Also, depending on the style and installation, some can cost nearly as much as premium materials like slate and clay.

Wood shingles and shakes – Wood shingles and shakes are generally made of cedar, redwood, or southern pine. Cedar is the most expensive of the available wood materials, but it is often preferred for its rot and decay resistance. Wood shingles offer some energy benefits as they insulate the attic, and the small openings under the rows allow air to circulate.

One of the disadvantages of wood shingles is many have no fire rating or only a class C, so it’s important to check with your local building codes before choosing this roofing material. That said, there are a few companies providing wood shingles that meet national fire safety standards as they are pressure treated with a fire retardant.

Another negative aspect of a wood roof is it requires a high level of maintenance to keep mold, rot, and insects at bay. When properly maintained quality wood shingles can last 30 to 50 years; however, this can be much shorter if the roof is neglected.

Metal roofing -Metal roofing is able to withstand extreme weather, which makes them well suited to hurricane zones and areas with heavy snow (snow slides off instead of piling up and denting or collapsing the roof). Also, they are fire retardant, need little to no maintenance, and are extremely energy efficient as the metal reflects the sun’s rays and reduces the amount of heat absorbed into the attic. Modern metal roofs come in all styles and colors and some even resemble other materials, such as wood shakes, clay, and shingles.

Similar to wood, metal roofs are more complex to install than composite shingles and require a skilled contractor, but the price of a metal roof is its main drawback. Generally, they cost at least two or three times more than basic composite shingles, and the price can go up even more if you choose copper or specially coated steel. However, with lifespans of 50 to 100 years, they can easily outlast other roof materials and end up saving you money over time.

Slate roofing – Slate is a roofing material that can be laid out in various different patterns. Like metal, it is exceptionally durable and can easily last 50 to 100 years as it is nearly impervious to fire, rot, insects, and demands very little maintenance. Although the colors of slate are limited to what’s found in nature, it comes in a range of greens, grays, and browns.

The major cons of slate are its high price (more than nearly any other material) and its weight (often extra roofing support is necessary). Also, it can break when walked on (makes maintenance a challenge) and it is less suitable for hot climates as the dark color absorbs heat.

Clay and concrete tiles – Clay and concrete are also durable roof materials that have great fire protection and are resistant to rot and insects. Clay tiles are usually lighter in color (ideal for hot weather) and are commonly seen on southwestern, Spanish, and Italian style homes. Alternatively, concrete tiles come in all shapes, colors, and sizes and are often designed to mimic other materials.

Clay and concrete tiles have many of the same advantages of slate, including low maintenance, a distinctive look, and a 50+ year lifespan. However, also like slate, they are delicate and can break when walked on, are heavy (need extra support), and are very expensive.

Flat Roofs- applied to flat or semi-flat residential roofs that have good access and proper drainage. It can be done in asphalt roll, tar & gravel, or rubber membrane, These materials are less expensive than other roofing materials and hold up fairly well when properly applied.

March 15, 2013 / by / in , ,
Keep Your Rehab Costs Down By Knowing How Many Gallons of Paint You Should Buy

I can’t tell you how much money property managers and rehabbers waste buying too much paint for their jobs.  So, I wanted to give you guys a great little chart that I found online that I have used as a great tool to pinpoint the amount of paint for each job.  Here is the chart:

Paint Calculator

Here is the link to where the paint calculator was found.   The paint calculator will help guide you through the process of  buying the right amount of paint for your next project. Find the right amount in just two easy steps:

  1. Measure the height and width of your space
  2. Locate the correlating values on the chart

Measuring before you buy will help you save money, the environment and the space needed to store your unused paint.  It wil help you keep your maintenance costs and/or rehab costs down without a lot of left over paint.

February 13, 2013 / by / in , ,
Warning Signs & What To Stay Away From When Evaluating Mobile Homes For Repairs
Mobile Home Repairs

Mobile Home Repairs

When you are evaluating a mobile home, you must take into consideration the overall condition of that mobile home.  There are some repairs that will cost more than some mobile homes will be worth in the end.  The factors that impact the value are going to be the location, condition, and type of mobile home park.  You could have two mobile home parks sitting right next to each other and the after repair value for the same type of mobile home could be very different.  For instance, if you have a mobile home in an area where the mass population is not 55+ you are going to wait longer to sell the mobile home and for half as much as in a family park.You must make sure you thoroughly evaluate each mobile home, so you can ensure you are not missing a major expense. The after repaired value of the mobile home will dictate the level and severity of the repairs  that you should do.  In fact, I bought a single wide mobile home 2 beds 1 bath 800 square feet for $299.96 from the mobile home park.  Since, I paid so little for it, I could go in with a larger budget and do the necessary repairs to the roof and bathroom.  The most expensive repairs for all mobile homes are the following:

  • Roof replacement
  • Siding replacement
  • Furnace replacement
  • Structural issues
  • Underbelly plumbing replacement
  • Major mold issues
  • Moving mobile home
  • Window replacement

The repairs that can push you beyond the value of some mobile homes are the following:

  • Complete kitchen remodel
  • Complete bathroom remodel
  • Carport add on
  • Steps & porch add on
  • Exterior painting

I have a specific budget that I keep for each of the types of mobile homes I buy, fix, & sell.  I have a different budget for single wides than I do double wides.  It allows me to ensure that I have enough room in the deal to make sure I can make my required profit.  It gives me a guide by which to evaluate each mobile home.  I know that if the current condition exceeds my set rehab budget that I need to move on to the next mobile home to preserve my profit.  I allow for a bit of cushion in this budget for unexpected expenses.

It is all based on how much I can sell the mobile home for and what condition the mobile home has to be in to sell for that top value in the mobile home park it is located in and who my target buyer is going to be.  Essentially, I run my numbers backwards to arrive at what I can afford to pay for the mobile home to make the money I need after repairs are done and holding costs are accounted for and end up meeting my rate of return.

Learn how easy it is to invest in the Mobile Home Real Estate  Industry! Please register for our FREE Mobile Home  Investing Webinar called  Tin Can Profits! (Yes, that’s what we call it.) on Jan 24, 2013 7:00 PM MST at:

While the rest of the investing world jumps on the latest Real Estate investing craze, avoid the competition and market mayhem by  investing in Mobile Homes.
Investing expert Dawn Erling will show you how easy it is to make  money in this lucrative market. She will give you her inside ideas and  tricks that have helped make her the mobile home investing expert she is today.  Be-aware that this niche isn’t for everyone… so if you are looking for lower investing price points, faster turn-a-round investments, and  how to make quick cash then join our free webinar! is proud to sponsor of this webinar.  After registering, you will receive a confirmation email containing information about joining the webinar.

January 19, 2013 / by / in , , ,
Are You Buying Investment Properties? All Cracks Are Not Created Equal.

I am in Houston, TX this week looking for investment properties we can buy fix, and sell or fix and sell as a turnkey rental.  In some areas, you will find common flaws for the area.  What do I mean by flaws?  These might be foundation issues, water issues, roof issues, landscaping issues, structural issues, or fascia issues.  For instance, Houston had a very hot and dry summer this past year, so a lot of the foundations in the area have broken or cracked due to them not being irrigated correctly during this time.  You will find this in many of your southwestern states where they have  extreme heat and lIttle precipitation.

How do you know if any one property was affected by the extreme heat? You will need to look for evidence of foundation issues on the exterior fascia and the interior walls and flooring.

Here are some of the main items to look for:

  • Many of the homes in that area have brick exteriors.  Brick exteriors will easily show shifts, settling, and any movement.  You will find that the mortar will crack in areas that have moved.  Most times you will find these cracks originating at the roof line or from window or door openings.  The lonager the crack in the mortar the more concerned you should be.  The biggest concern should arise when the crack is wider than the width of a quarter.  It is even more severe, of you find that the crack has gone thru a brick instead of around it.  The number of cracks in the brick exterior are also a concern.  If the brick fascia is moving forward or bowing outward, you need to do more investigation into the reason for this direction of movement.
  • The foundation is obviously a place to look for cracks.  In a lot of case, the foundation will show just above the ground and will allow you to see any issues with it. You should look for cracks in areas where  a basement window or door are located.  Also, you should look at corners and other weight bearing areas on the foundation for cracks?  In some cases, the cracks will be on a stucco like material added to the foundation for a nicer finish and not the actual foundation itself.  Where you find brick mortar cracking, you might find foundation cracking too.
  • You will want to check entry doors and door frames for settling too.  In some cases, the settling will be so bad that you will find the door is hard to open or close.  You might even see visible cracks in the wood around the opening. Garage doors will not open or close properly or you will find that the garage closes on one side but there is a large gap on the other side
  • The basement or crawl space will offer more information about settling.  You will need to look in area where windows and doors are located and where most of the weight of the homeborn being held.  If you find surface cracks, you might need to do a little more investigative work.  If the cracks are wider than a quarter, you should consider that there are some issues with the foundation.  Some floor cracks are common and more common in some areas than others, but when you have a lot of cracks running all over the basement floor, you should consider moving onto your next investment property.  You should note whererepairs have been made in this area too.  The floor may have been releveled or resurfacedTo hide the issue.
  • The ceilings and walls will show shifting and settling too.  When you are inside the investment property you might find around the door and window openings cracks leading down to the floor or up to the ceiling.If these are large cracks that are prolific throughout the investment property, you might consider walking away or further investigation.  Plaster finishes are less forgiving than drywall finishes, so you will see the settling in plaster more readily than you will in dry wall.  If the doors in the investment property are closing on there own or they are difficult to open, then there has been some settling that has occurred.
  • All of these factors are indicators that shifting and settling has occurred with the investment property you are considering investing in.  You will find some evidence of settling in most every home you go into, but the severity and amount of cracking will be the true indicator of whether it is usual or unusual cracking.  The more severe cracking might be an indicator of foundation issues or other structural factors being present in that investment property! This you will either need to run or seek further help to investigate the severity and options for resolution.  Foundation and structural issues can be quite expensive to resolve.
January 2, 2013 / by / in , , , ,
Real Estate Investors & Landlords: Are You Buying a “Grow House”? Learn The Signs & Problems To Be Aware Of

If you are a real estate investor, rehabber, or landlord, do you know how common grow houses are?  A total of 4,666 marijuana grow houses were busted in the U.S. in 2009, according to the U.S. Drug Enforcement Administration — just a tiny fraction of the number in operation, experts say.  Do you think grow houses are only found in low income neighborhoods?  You are mistaken if you think they occur only in poor areas.  Most of the grow houses I have come across were in the suburbs and in really nice neighborhoods, where we typically look for our investment properties.

I travel all over the country looking at investment properties.   Many of the investment properties we target are ones that need major repairs.  Mold is one of the condition factors we run into the most.  Recently, I have seen a lot more properties that were grow houses, so I have decided to help real estate investors, rehabbers, and landlords identify and stay away from these properties.  If you know what to look for, you can avoid some of the expensive and extensive repairs that are associated with these properties.

First, let’s discuss how you can spot a grow house.  There are a few key indicators that any real estate investor, rehabber, or landlord should look for in the property they are looking to buy as an investment property.  Here are a few indicators:

  • The house will have newspaper or other material over all of its windows, even tiny windows in the garage or second-floor foyer.  You might find them spray painted, covered in aluminum foil, or boarded up.
  • Often you will see additional wires leading up to the power line avoiding the meter, so they can avoid being identified on the grid by the police for excessive power usage and to avoid paying for all of the electricity they need to power their crop.
  • Many times the landscaping will not be maintained and it will become overgrown.
  • You will see odd and additional ventilation added to the area where the plants were being grown. In a lot of cases, the ventilation will be directed up into the attic, so they can prevent neighbors from smelling the crop outside the home.  For this purpose, there is going to be a lot of moisture retained in the property.
  • Due to the amount of moisture retained in the property, you will find abnormal and random occurrences of mold all throughout the home.  You will not see a set location and obvious water stain.  It will be on walls, ceilings, etc.
  • You will find red encased wiring coming into the home, specifically where the pot was being grown.  White and black encased wires are the norm throughout most properties.  Red encased wires are typically used for higher voltage purposes.
  • Many of these properties will have “hidden rooms”  where the pot was grown.
  • You will find water sources redirected to the area where the pot was grown.  I have seen hot water heaters with hoses and release valves soldered into the existing plumbing going out of it.
  • The house may be the only home in the neighborhood with security doors and bars on the windows.
  • There will be unusual wood stands built, tarps, or even just black circles on the floor where the pot was growing.
  • You will find shadows on the ceiling near where the joists or rafters are attached to the wall.  It will be a lot easier to see if the ceiling is painted white or a light color.
  • The property will tend to be just plain filthy with intense pet odors.

Next, I want to help you understand some of the issues that come with these properties.

  • Mold is one of the biggest and most common issues.  It is hard to fully assess the level of damage, so it is hard to gauge the level and degree of damage.  It can be an expensive issue to resolve when done on a large scale.  Often, the level of mold damage can be hidden by primer and paint.  I recommend getting a moisture meter in the property to evaluate the level of moisture in the air.  If the level of moisture is over 20%, you may want to walk away from that once upon a time grow house.
  • The wiring within the property will usually be altered by the pot growers, so they can avoid the meter on the property and run their grow lights. Basically, it creates a fire hazard throughout the property.  In fact, most of the grow houses are discovered when a fire occurs. I have seen wiring that was not up to code throughout many of the properties that appeared to be grow houses at one time.
  • I have seen holes cut into ceilings to direct ventilation for the grow room.
  • They tend to alter the duct work.
  • There are some cases where foundations have been altered too.

Hopefully, I have been able to shed some light on the condition factors you need to take into consideration when run into a grow house.  Additionally, I hope you can identify what are some of the indicators that the property was a grow house.  If you can identify the warning signs, you can better estimate the level and cost of repairs needed to resolve the issues in that investment property.  In most cases, it might just be safer to walk away.

November 1, 2012 / by / in , , ,
Cash Buyers: Are You Buying a Smelly Wholesale Property? Learn How to Remove Odors in Your Properties for Cheap


Remove Odors for Cheap

Remove Odors for Cheap

Over the years I have tried many different ways to remove nasty smells in my properties.   The worst and hardest smells to remove are those that come from pets.  These are some of the most difficult smells to fully remove from any property.  In a lot of cases, our wholesale properties will have quite a few issues wrong with them including dirt, grim, and mold.  

  • One of the first things you need to do is remove all of the carpet and padding out throughout the smelly house.  It will improve the quality of air quite quickly.  
  • You should change the furnace filter too. Normally,  it has captured quite a few odors and will spread those throughout the home when the heat is turned on or in some cases air conditioning is turned on.  
  • If you place dryer sheets in the air vents and turn the heat on after you have changed the furnace filter, you will be circulating nice clean smelling air throughout the house and back into the furnace via the return. 
  •  Next, you will make sure that you spread a generous amount of baking soda all throughout your smelly wholesale property.  You will let the baking soda stay on the surfaces of the home for at least a few days before you will vacuum ing it up.  It does a great job of absorbing odors, just like you would use in your refrigerator.  
  • You can use chemicals to help clean surfaces such as floors and countertops too, but these only do so much.  
  • There is a machine called an ozone machine that puts out ozone into the air throughout the home and cleans the air as it is doing it.  Ozone sanitizes by breaking down odors, microorganisms and other pollutants at their source.  The source of the odor has been permanently removed, instead of masking it like chemicals used to clean or deodorize.  It is something that you need to make sure you place in a closed windowed home over night and then come back in the morning and turn the machine off and air out the home.  The ozone in the home needs to be released form the home.  You will find that the air quality of the home will be greatly improved by using one of these machines too.  
  • In addition to using the ozone machine, you can use a primer such as Kilz on the exposed sub-floor that was let behind your carpet or other flooring removal.  It will help keep the odors from coming up through the flooring.  If you have a concrete floor, you can use garage paint which is epoxy and paint the floor where the flooring has been removed.  It will help keep he odors in the concrete from coming back up into the home and provide a surface to resist additional odors from seeping into the porous concrete.

These are just a few of the ways that you can eliminate the nasty smells that come with properties that have been sitting for a while and/or that have not been maintained.  It is a great and fast way to clean a property up and make it appealing to most people.  It is a very small cost investment to resolve a problem that deters most people.  

October 25, 2012 / by / in , , ,
Real Estate Rehabbers & Landlords: Do You Know How To Determine If Your Buying A Meth Lab?
Meth Contamindation

Are You Buying A Meth Lab?

As the competition heats up in many real estate markets, some real estate investors are opting out of the inspection clause, so their offers are more attractive to the sellers. In many cases, they are fortunate and do not run into serious issues with the properties they buy. However, it is not always that lucky. There are more and more homes that are contaminated with a variety of different toxic substances such as mold and meth. Meth is what the rest of this post is going to be targeting.Any third party seller is going to sell their property AS-IS, so they do not have to fill out the sellers disclosure that most real estate markets require. If they did fill this in, they would be held accountable for what they did disclose and what they did not disclose. Many of these parties have not lived in these properties and they have not done thorough inspections of the property, so they do not want to be held accountable for the properties issues. You will find that REO, bank owned, corporate owned, and estates will be the majority of the sellers selling properties AS-IS.Many people do not think that Meth is as common and big an issue as it is. Drug czar Gil Kerlikowske, head of the president’s Office of National Drug Control Policy, testified that “U.S. meth lab seizure has more than doubled between 2007 and 2010, and these labs pose a major threat to public safety and the environment.”

Here are the chemicals that are typically used to produce meth:

  • Flammable and volatile solvents such as methanol, ether, benzene, methylene chloride, trichloroethane, and toluene
  • Other common household chemicals include muriatic acid, sodium hydroxide, table salt, and ammonia.
  • Meth-related chemicals not commonly found in large amounts in homes include anhydrous ammonia, red phosphorous, iodine, and reactive metals.
  • Other hazardous chemicals can be formed during the “cooking” process.

As you can see that these chemicals are toxic and offer a lot of fumes from the cooking process. Here are the signs of a potential Meth lab to protect your investment and your property from catastrophic damage:

  • A strong smell that might resemble urine, or an unusual chemical smell like ether, ammonia or acetone.
  • Little or no traffic during the day, but lots of traffic at extremely late hours.
  • Extra efforts made to cover windows or reinforce doors.
  • Residents never putting their trash out.
  • Lab materials surrounding the property (lantern fuel cans, red chemically stained coffee filters, clear glass jugs and duct tape).
  • Vehicles loaded with trunks, chemical containers, or basic chemistry paraphernalia – glassware, rubber tubing, etc.
  • Laboratory glassware being carried into the residence.
  • Two liter soda bottles with residue inside of them.
  • Stains in bathtubs and toilets throughout home.
  • Inhabitants smoking outside due to fumes.

Here are some factors that need to be looked into in order to determine if any given property has had any past drug activity and known meth issues:

Decontaminating a former meth lab can run anywhere from $5,000 to $150,000, according to experts.  There are different remediation requirements in the real estate markets throughout the Nation.  In some areas, it is going to be a heck of a lot more costly to rectify this issue than is others.  The other factor is that if you rent or sell this property to someone without rectifying the meth contamination and they get sick, you stand the potential of getting sued.  One other factor to note, it is not isolated to low income or depressed areas either, it is just as common in the suburbs as it is in the inner city.  I just want to make sure that you know to do your due diligence to ensure you are making a wise and profitable real estate investment.


October 2, 2012 / by / in , , ,