MOLD!

We've looked at some REO's that were left with no power on. The humidity let mold grow like crazy. We called a mold removing specialist and they wanted $300 just to look at it and give us a quote. It was a nice area but once it was reported that it had mold, it was going to have to be cleaned up by the pro's. The mold was in the drywall, studs, carpet & sub-flooring. It would have been a total gut-rehab.

If you plan on buying, I would find out how bad the mold is first and if you can do the work yourself or need the EPA approved companies to do it. Has the bank given a mold disclosure?

Not sure what state you are in.
Many states have mold disclosure requirements upon sale. Not a big deal to the banks due to the types of contracts they use, but evaluate your exit strategy.

Now you know about the mold, you many have to make sure to disclose what you know if you hold for rental or resell after rehab.

Better to always disclose what you know...

Regarding financing, all you can do is ask the lenders you deal with. Some are more flexible than others. Also, are you getting some type of rehab financing on it? Those programs are a bit more flexible with loaning knowing the problems will be addressed.

Happy Investing!

On my way to meet the mold removal specialist. Will keep you posted!

will know how to handle mold issues; sometimes it can just require bleaching and sealing the area, and installing a dehumidifier.
Other times you may need to remove the drywall, the framing (if it's rotten due to the water damage) and the insulation.
It usually worsens when a house is sitting empty for a long period of time without any ventilation.
The cost of the repair will obviously depend on the size of the area and the amount of damage; but any licensed contractor in your area can give you an estimate...

Wishing you success,
Valerie

You have to be very careful with mold. The secret is find out what the extent is throughout the house. You really need to get a mold expert in the game and get an estimate on the clean up.

I might suggest that you go to this link that is set up by the EPA specifically on mold cleanup.

http://www.epa.gov/mold/cleanupguidelines.html

Randy Bailiff

specialist. He told me they use 18% peroxide instead of bleach based products, because of the foaming of the peroxide you can see it actually working. He said if you had a cut on your hand and this potent peroxide touched it...it would turn it into a callus. He is from Maine and that is where he works. I'm in NJ. I thought that was such an interesting tidbit of info.. but yes you do need to be very careful with mold. You don't want to cover it up or have it trapped inside a wall somewhere cause people can die from it if it's not taken care of properly.

No roof leak... yippee! Just some really really messy people who let the tub overflow or something like that. The drywall can stay but the flooring needs to be removed. Then they clean the walls and scrub the air (???!!!)until they can certify as being mold free.

Boy, it's a big job, though. Waiting on the estimate now.

Just got stood up by contractor #2, so got to get some other bids lined up asap. Thanks for all the good words!

Sounds like an easy fix.

I just had the same issue in a property that we rehabbed. If the mold gets into the studs you should just replace them and wash the walls with a bleach water mix and then we also sealed the exterior walls with kilzs. If the wood or sheet rock has mold on or in them, it’s always best just to replace. The Kilz can stink, but with the new wood and sheetrock and paint it will overpower the smell. If you worry about the smell you can put a few ounces of vanilla extract in a gallon of paint. A little extra care will go a long way to helping the buyer feel confident the problem is solved.

you are supposed to spray it all down and let it sit for a couple of days , but after it dries you have to repeat 3 or 4 times to get rid of it completely.
It's not too difficult just make sure you get it all.

You can get mold easily in humid areas if you don't have a dehumidifier running.

what is the update on the MOLD issue at hand?...reason i ask...i use to work for guys that went in and cleaned it up...so i know what to possibly due???

When I see mold in a property I see $$$ Mold is such an easy fix and most banks and sellers see it as such a terrible thing that you can get properties with mold at a great discount.

Putting bleach on mold is the WORSE thing you can do!! It can actually feed the mold and make the situation worse. Bleach is made up of mostly water so in reality it makes the mold thrive in more dampness. For more info Read this http://jennifer-harshman.suite101.com/using-bleach-to-kill-mold-backfire...

When our contracting company begins a mold remediation is a property that we buy we first open up all of the areas that have evidence of mold to allow the air to circulate. Cut out sheetrock, remove wood trim etc... Then we use 1 simple product that kills mold instantly... LYSOL!!! Depending on the amount of mold your dealing with buy some aresol cans of Lysol and spray directly on the mold. Set up a de humidifier and wait about 3 days and you will see the mold is dried up or gone.

Another great product is MOLDX http://www.jeswork.com/crawlspace-repair/moldx.aspx you can get this in your local Home Depot or Lows store.

Of course if you get a property where there is so much mold the walls are taking to you then by all means hire a professional. But otherwise mold is a pretty simple fix so don't let it scare you out of buying a property. If anything you will get a great deal on a property that actually isn't as bad as it looks.

We opted to remove all the areas where there was mold... just to play it safe! Our plan was to redo the flooring anyway, and one of the worst areas was under the layers of linoleum in the bathroom... so we brought it down to the wood. So it's cleaned up and hauled off! We will have it tested by a mold inspector very soon (next week or so) and hopefully get the clearance.

Thanks for asking and I'll keep you posted!

When we use to go in and clean up mold...we pulled the sheetrock (or latase and plaster if its an older home that hadnt been updated)and all the insulation down to the bare frame and then we went ahead ...pending on severity... wiped it down with a commercial product we use called "SPORIDIAN" OR "SPORIDINE" if we didnt have the first opt available...then we ran a dehue unit and a couple commercial fans that can move air like no ones business... then after we ran test to confirm it was gone we then went ahead and started the restoration process with new insulation and sheetrock!...thats how we roll at SERVPRO....call the Pro's @ 1-800-SERVPRO!

I have Mold issues with a poperty too. How do you know what method to use for cleaning the diffrent kinds of mold? I am not sure how bad the mold issue is in the property we are looking at but my husband does. Just an estimate how much does a major clean up of mold cost?

Call a mold mitigation specialist. There has been advise on this thread that will make the problem worse. This could lead to a lawsuit by the new homeowner You will want the written statement from the mold mitigation company on what action was taken and that the problem is now solved.
When possible,(anything but an auction property) these costs should be estimated before and included in your offer.
I don't think there a very any micro biologists on this site that would know the different types of mold and what to do about them.
I know of a property (not mine!) that the investor spent upwards of $20,000 on a 1500 Sq Ft property. It was pretty major!

Michael Mangham
MD Home Acquisitions LLC

Yes, Micheal, I agree. I think it's important to take this very seriously and we personally got bids from several specialists. One thing that they said unanimously is that mold is bad whether it's dead or still living. The spores can be harmful to persons with allergies either way. So the mold spores (airborne and on surfaces) must be removed (remediated). There was a lot of information on the EPA site. I think someone posted the EPA link on this thread. The companies that remove mold are NOT the same people that will give you a mold clearance certification.

So, first you clean up (remediate) and then you test to see if it's all gone and get the clearance from the inspector. Then you're good to go. The clearance assures you and your prospective buyer or tenant that there is no longer a higher concentration of mold inside the house than outside the house.

FYI: Black mold feeds on cellulose, wood based, organic material. It can feed on house dust! It can feed on the paper covering of drywall! Mold will feed on any fabric, anything organic, and many of the items that are in your home and items that comprise your home.
You must make sure the resolve is complete and thorough. You can get referrals and ask for a license and insurance papers from any sub contractor that steps foot on your property. This is very important when property is ready to sell and questions are asked. You want to be covered and you can show this information to whomever should ask.

I love the properties that I walk into and smell the stench and smell of something rotting or moldy…….because this is what I call the smell of $$$ MONEY!!!!
Most new investors that are wholesaling properties should remember they are just wholesaling and let the buyers like Carol handle the mold or more advanced repairs. We just need to have an understanding, but don’t get caught up in getting it done right. The advanced buyers are going to follow up on those important issues. We just need to run the numbers and allow for the repairs and let the buyers worry about the repairs and if it is done right. Wholesaling is fun and rewarding, so let’s make it happen this New Year.
Best of Luck

Thanks Mike How do i get my husband on board with this one? I really think we could make something of this property.

I think one thing to point out with mold (since we all agree it must be throughly and properly dealt with... both for future resident health safety and for our own liability), is that it's hard to know exactly where your repairs/remediation will have to end.

As cmitchell pointed out, if you're wholesaling, the rehab part isn't going to be a huge factor except in how your wholesale buyer runs the numbers. But, I'm doing a rehab, and you might be too, so I've got a different standard to hold to.

If mold is on the floor... will it just need cleaning? Or, as in my case, stripping many layers of old flooring off to get to the sub floor and start over? You'll have to figure it in to your repair costs, and, it might be hard to get a good estimate until you start pulling things off the floor or walls. Is there an underlying cause for the mold (leaky roof? Leaking pipes? Water heater? Poor ventilation? Slobs living there?) that will also have to be dealt with.

The mold remediators that I called all gave free estimates (they grumbled, but did come out at no charge). Hopefully you can get your bids during your inspection periods and have an idea of what you're dealing with. As usual with subcontractors, the scope of work and price estimates varied wildly. There are no set state or national guidelines or contractors union specifically for mold remediation work-- so err on the side of caution when hiring someone.

The fear factor when mold is mentioned can surely help you grab a bargain, but make sure you know how much it's going to take to fix it. If you just paint over something without disclosing and/or fixing the problem you might find yourself in hot water sometime down the line.

As Carol said, you can get the fans going and dry the place out, then clean it up. The air sample is sent to a lab-- you get your clearance-- and then you know for sure that you've gotten to the heart of the problem..