Within this article, you’ll gain some valuable step-by-step flip tips for finding, funding, and flipping mold damaged properties. The information you’ll be going through is what every real estate investor must have in order to make money in real estate. Use this information immediately, and start gaining instant access to mold damaged properties.
For a lot of investors, mold damaged properties tend to steer them in the wrong direction. The main reason why is they don’t know the level of mold damage that is within the property, so it tends to scare them off. The main reason why it probably scares them off is they think dollars, dollars, dollars on what it will truly get the property fully up to speed, and what the property is going to cost for down the road.
Now, what I can tell you is, the only major problems that I would say that you’d run into is if the mold has gone throughout the whole entire house. I would probably stand clear of it unless you could get a really great deal to have the property demolished. At that point, you’re going to have to redo pretty much the whole entire interior of the property. The floor joints, all of the walls, depending on how clean and thorough you could have a mold remediation company come in there and clean it.
Let’s talk about some of the ways that you can find some of these properties and really get some great deals. First of all, you can really get some great deals on some mold properties by just checking on the MLS. You could have a real estate agent do a search for you to find the types of properties that you want in order to find mold properties. They could find “mold damaged” properties within the description fields if there’s any type of mold properties that have any significant amounts of mold in the property.
You’re going to find mold in properties that are more likely in a distressed state. These could be possible short sales. These could be divorce deals. These could potentially be bankruptcy deals. When it comes to bankruptcy, you may want to stay away if it is a lengthy Chapter 13. Those can be about five years, possibly. It just depends on how the foreclosure and the bankruptcy is written, and if the individuals that are owners of record take back the property within the Chapter 13. If it is a bankruptcy, I would just look at what kind and see how long they are into the process. A lot of people tend to move out during any type of divorce or bankruptcy.
You’re going to be able to find some of these also through probate as well. Maybe mom and dad passed away or a loved one passed away and the house has been vacant for a while. A lot of individuals, especially that become the executors of estates, do not want to have a property that they have to pay for mold remediation. They could also start getting fines from the city as well if the property is starting to become dangerous to the neighbors because black mold will cause a significant level of toxicity in the air, and could cause damage to people around the house. I would be one of those neighbors that would be very cautious of getting into a property like that. That’s one of the things you can check on the real estate MLS.
You could also talk with mold remediation companies. These are the people that are taking care of properties that have mold. You could talk to them, see if they have any individuals that are looking to sell. Most of them are. I would say it’s probably about a 75% shot that you will be able to secure a property that has mold in it because some of the times the insurance company will pay, but the homeowners will be like, “You know what? We’re done. We don’t want to be here.”
I would talk to mold remediation companies. That’s a great way for you to find some great properties. That’s a really great avenue to go down for building up professionals on your network. It’s a great way for you to start building rapport with people that could potentially help you and find you additional properties. Let’s face it, mold remediators, they obviously get paid by doing remediation, correct? Well, some homeowners may not be able to pay for that, but if they you can, they may put you in contact with those homeowners so that you can get in contact, you can get the deal under contract, and then you can have that mold remediation company come out and do the mold remediation. It works out for everybody.
Last one that I would tell you is somebody that a lot of folks tend to shy away from and that is an insurance agent. Insurance agents obviously will find out about the claims. They will be the ones that will be finding out what type of work is going to be needed here, what’s the level, what’s the severity of the mold that’s in the property, and how are we going to take care of this? Do the people want to file a claim on this? Do they just want to move out? What do they want to do? You could, again, get in with some insurance agents and you could find out what type of properties found a significant amount of mold.
Now, why would insurance agents find out about this? Vacant properties on rentals. Individuals that have second homes. Maybe properties that were broken into while people were on a long vacation. You never know. Mold can grow very quickly. Right now, in the Midwest it probably wouldn’t be the time for mold to grow just because it is cold outside, but we are experiencing, like today, it is close to 50. Mold could potentially grow, but you’ve got a very slight chance that it could grow in high 40 degree weather.
You’re more likely going to see mold … Mold is more than likely going to grow, I would say, in the high 60’s. You’re going to have a significant amount of growth in mold compared to lower degree days like, example, today. States like Florida that are very humid, you’re going to see high levels of mold. Just when I go down there to visit, there’s tons of green mold on the exterior and interior of properties that we look at, and that’s a simple fix. The stuff that’s in the Midwest and other states to where it goes untreated, you’re going to see the black mold and that’s the dangerous stuff.
Now, these insurance agents will get notified about claims that they need to get taken care of because homeowner’s insurance does cover that. If it doesn’t, then obviously you got a bad policy. I would take a look at that. There’s some really great opportunities with mold-damaged properties. Again, my whole thing is “Mold is Gold”. It can turn into a really great thing, especially here in the Midwest. We have basements. As long as it hasn’t reached that main floor to where the floor joints are going to need to be repaired, then it can prove to be a really great deal.
If you’re looking to wholesale, it’s a great wholesale opportunity. If you’re looking to rehab, it’s a great rehab opportunity. From a buy and hold standpoint, if you want to do the whole rehab and then get somebody in there to rent out the property, then yeah, that’s a great opportunity. That’s not typically what I do when I’m buying my buy and hold properties, but if that’s what you want to do, that is completely and entirely up to you.
Hopefully you enjoyed this flip tip video. I will be making more of these flip tip articles for you, so be on the lookout. If you have any questions, any roadblocks, or any hesitations at all in going after mold damaged properties, leave me a comment on this video, depending on wherever it is, on my blog, on YouTube, on Facebook, wherever. Just leave me a comment below. Leave me a “like” if you liked this video and if this was helpful. Just let me know because that helps me create more videos for you.
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