What To Do After Property Is Under Contract
What steps does one need to do after a property is under contract to rehab?
What steps does one need to do after a property is under contract to rehab?
- Shop around for good contractors and get quotes
- Start shopping for Insurance agencies who will insure your rehab property
- Get a good contract in place once you decide on your contractor
- Most importantly, get your mortgage in place to buy the property
- Once you close on the property, you can start slowly advertising the property for sale while you rehab it.
Interesting question. I'll be watching for someone in the chemistry line to answer that one. I'm thinking it should be a non issue. Heck if you mix regular household ammonia and bleach guess what...chlorine gas. So even many household cleaners can be truly lethal and everyone has them from drain cleaners , to lacquer thinner etc. Even that flakeboard/waferboard stuff emits toxins and no one seems to be liable for that.
this question has been asked once before
http://www.thecreativeinvestor.com/modules.php?op=modload&name=Forum&file=viewtopic&topic=33579&forum=45
Allow me to take this opportunity to put in a plug for the All Star Access level to TCI. As one of its features you get the search function for the forums. Allows you to sort the thousands of posts in the TCI forums quickly and easily so that you can reap the benefit of past posts.
Hey,
That was a good link.
If you read between the lines, Meth Labs are NOT that big a deal. It sounds like a normal rehab, to me. Clean the walls, remove the carpet, clean the HVAC system, paint the walls and ceilings, etc...sounds the same. Wear a good pair of gloves and a mask.
If you are really concerned about liability, disclose that the owner was running a Meth Lab and then mention all the work.
Truthfully, the household cleaners in my house appear to present the same danger level.
How are you so sure Meth was cooked there? Do you have papers stating this as a fast or did someone just tell you ? If it is the latter then don't worry about it. I do disagee with Bruce who says to tell the buyers. I think you could be opening up a can of worms here. I'm not saying to cover things up but to indulge more information than you have to is silly. good luck.
Actually you could use this to your selling advantage--you might have a niche buyer out there. Try this ad:
A killer deal...dude! 3bd 2ba n'ice home in n'ice area (haha). Want a new hobby? "former" chem lab already here! Stay-at-home mom special! Just move in and start your own home business!Call owner 555-1212 cell block #34, Ask for Methman
Never a dull moment in REI
LOL!
Hey,
You might want to rethink your idea of NOT disclosing that a house was a prior Meth Lab.
You are required to disclose any information that materially effects the house. Based off this thread, and other likes it, I think it is clear that the prior use of the house as a Meth Lab would fall under this requirement.
I also don't think you have to make a big deal out of it. I would add a sentence or two disclosing the facts and then go on to explain IN DETAIL all of the changes that were made to the house ( new carpet and pad, cleaned walls, painted with three coats, etc.)
Bruce,
How do you propose adding a few sentences about the house being a former Meth Lab without making "a big deal" about it ??? Now that I would like to see.
Madam rei,
How do you know this was a meth lab ??? Who told you ? Maybe the lab was just being set up, when this fine citizen was busted. Maybe nothing was ever cooked. In which case would you see any reason in divulging such information ???
Please show me where it says that a meth-lab creates a hazzardous house that needs special treatments to make is safe. If this is true than disclose it, if not then don't.
Please show me where it says that a meth-lab creates a hazzardous house that needs special treatments to make is safe. If this is true than disclose it, if not then don't.
I remember seeing a segment on Dateline, or another news program like that with this type of scenario. It does pose a danger, especially to children. I found this link that might be helpful:
http://www.mapinc.org/drugnews/v01/n214/a08.html
Hey,
On the "big deal" issue:
"There is the possibility that a previous owner used the premises for the production and distribution of controlled substances."
And that is it...you do not go on and on and on about the topic.
The law does not have to mention specifically METH LABS because a seller must provide FULL DISCLOSER on the property. Basically that means anything the seller knows about that might effect the house or the value of the house.
Thanks outerbanksrealtor, that link does show that certain states have adopted laws in regard to methlab rehabs. Apparently it is a concern that is going to garner more and more attention. It isn't about the individual chemicals that were used to make the meth, but traces of the meth itself in the carpet and such.
OK. It looks like none of you have ever dealt with this problem before.
My friend was going to purchase the house. And due to the fact that the people looked like meth users, she had it tested. The house "appeared" to be in fine condition, but the tests revealed over 1300 times the legal amount. The toxins were also prevalent in the plumbing adn HVAC systems.
Just for the record it is illegal not to disclose this & even if it weren't, it would certainly be unethical.
Bruce, I agree with you that one should disclose the problem & then explain in detail what measures were taken to correct the problem.
FYI, a meth problem in a house is one that "brands" the house forever, just like a salvaged or flooded vehicle.
So I guess it is not a problem that can ever with 100% certainty be corrected.
Madam rei,
So what your saying is your friend talked herself out of a deal !!! WORSE - she paid money out of her own pocket to not do the deal. I wonder how much a test like that cost ??? I can hear your friend right now talking about how she saved herself alot of money by not buying this property. Look I don't mean to come off harsh but come on. Does anybody else see this as a problem ??? Sounds like your friend would have just kept going until she found something to make her not do this deal. Nothing about reselling this house was illegal or unethical until your friend showed she had to much knowledge for her own good. I'm not talking about maliciously covering anything up but why dig ??? My point is I'm sure she could have found alot of other things wrong if she just kept digging and digging. Why not just suspect the worst and make your offer accordingly.
gobriango - read the link posted. If the info is legitimate there is an issue.
quote]
On 2004-11-05 18:16, gobriango wrote:
Madam rei,
Look I don't mean to come off harsh but come on. Does anybody else see this as a problem ??? [/quote]
IT IS A HUGE PROBLEM The cost of hiring a private firm to clean and test a meth house, can run from as little as a few hundred dollars to more than $20,000.
Plus the house will always be branded a meth house and never comand retail value.
Actually my friend is not an investor. She was looking to purchase the house for herself & her family. But her kids are ages 1 yr & 3 yrs. She would never want them to be openly exposed to such chemicals & understandably so.
I will contact a professional remediation company & ask them whether they can guarantee their work. I'll let you all know what I find out.
I'm not worried about the price I can sell the house for - I can always account for that when doing my numbers upfront. My main concern is whether a house can actually be made safe again.
Hey,
I come back to my earlier statement...this does not seem to be a big deal. Remove the carpet, clean the walls, run bleach through the plumbing, paint the walls, etc. Does anybody see this as different than any other Rehab project? Maybe I am missing something.
To me this sounds like the evil mold terror that has gripped RE.
I would buy a Meth house (at a severe discount) and clean it up.
Yes, legally this is different from any rehab project if you work in a state that currently has codes regarding former methlabs. Yes, morally and ethically it is different no matter where you work.
Once again, read the link. It is pretty easy to understand, certain state EPAs and depts of health are very involved in methlab rehabs and the trend appears to be spreading rapidly to other states. There are already official guidelines based on particals per billion in sampling. Rehab could mean going as far as gutting all drywall and insulation in the walls.
[quote]
On 2004-11-05 16:22, madame_rei wrote:And due to the fact that the people looked like meth users, she had it tested.
How do meth users look?
My brother was or is a meth user. (not sure of his current status) He has rotten teeth & is very very skinny, which I understand is typical for people addicted to meth. My friend and I just both got this feeling when we went with to view the property. Half the people there had very bad teeth or no teeth at all, even though they couldn't have been more than 40 years old. (Not to categorize all people with poor teeth as meth users). There were guns & bullets in the closet (Again, not that no one else has these items)
But these people seemed as one might stereotypically expect for meth users.
There were a lot of cars out front and the owner of the house had just bought an $8000 engine for his truck (he was unemployed). He also seemed somewhat neurotic & in the course of our conversation mentioned that the neighbors all think there's drugs going on, but he is just taking in some homeless kids because "where else are they going to go?"
Well... now you know the reasons that made my friend want to check things out closer before moving her kids there...
The inspection & testing costed $600