Mold Disclosure
I recently signed a contract on my first true "rehab".
As part of the contract I had to sign a mold disclosure statement.
The property has a small bedroom basement. On one of the exterior walls there is a 4x4 foot area of drywall that has black mold on it. there is no moisture on the drywall, only the mold. The house has sat vacant for 6 months.
My question is do I have to show that it was "professionally" removed, or simply remove the affected peice and fix any problem, then sell as/is and have the buyer sign the same type of document
Thanks
I think that would be all that is needed.
Kjohn,
I just revisited the property (a long story), it was off the market, then back on, I bid on it the first go around, then again 3 months later and I was the high bidder.
There is as little standing water in the basement bedroom. I searched further and realized the gutters are not on. I plan on getting this fixed and then placing a french drain along this wall as it is on a small slope.
There is more of a problem than when I visited the property 3 months ago. (utilities turned off, no heat air 90 degree temps etc.) I plan on removing any affected drywall, about 2 full walls, then use a product called "shockwave" any mold areas, then finish as normal.
Any other suggestions
Thanks,
Don[ Edited by drdanger on Date 08/24/2005 ]
Did your investor friend give you any tips? Our market is very competitive as well.
Sounds like you might want to check into a new real estate agent before going through all the trouble.
I tend to diasagree with most of the people that are against getting the license, iam in the similar situation as the original poster, and its better to have a license, since you have access to everything thats out there, plus if you work it right you get also money upfront to work on your rehabs, and save money on the selling. Its definetly worth it!
What does your HUD-1 Settlement sheet look like?
Do you have Escrows?
The monies you put down and your credit scores have nothing to do with Closing Costs.
The money you put down reduces the total amount borrowed and the credit scores may reduce the terms (%).
lol, I can relate. When we purchased our first investment property the sale price was 54,9. We put 10% down, and were blown away when we had to pay over 3k in closing costs. This time we are upping the price of the house on the contract and having the seller pay closing/incentive.
First - I would question your interest rate with a mid 700 credit score.
You need to tell us what is on your HUD1 Settlement statment. Does the 3500 include insurance, points, your 10% down, prorated taxes, etc.
Brenda
Is this a hard money loan? Did you impound a few loan payments or what?
Check the costs to see if some of the money is going into escrow for tax reserve and interest. Depending on the closing date, you could be pre-paying a lot of interest.
Alright, I give up ...............I gave my guy the benefit of the doubt, but enough is enough; I went through a local credit union and am getting a 95% loan, with a 7.15% interest rate (30 yr nonetheless) and only $2600 in closing costs. Compared to a 90% loan at 10% interest (3/1) and $3650 in closing costs; the difference is night and day.
Getting a loan with less closing cost and high interest is probably a better way to go if you are going to flip the property right away.
Has anyone bought property all cash, tell me what closing cost would be there if you bought all cash, and how much time is needed to close when buying cash.
Some states the doc stamps(tax)are shared or most of the times fully paid by seller and Title ins is fully paid by seller. If someone is slick they might try and see if they can sucker the buyer into some or all of these fees especialy if they have to pay that added $500 finders fee to a realtor.
If most of the time in closing is involved in loan paperwork, than does that mean when dealing in cash the time mostly spent would be by seller and the title paper work ? Thanks guys for replying to my closing cost question, and yes title insurance is mostly paid by the seller not to mention sometimes part of buyers closing costs aswell. Seems like buying cash gives a big bargaining advantage.
I bought this book in 2003 and it has served me well. I am sure you can check it out at the library. It is called "The Complete Guide to Your Real Estate Closing" by Sandy Gadow. It is an insiders guide to the cheapest closing cost. If you have time check it out
10% of $50K purchase price sounds about right. Unfortunately for us, MD has a very high transfer and recordation fee. If you were also paying loan points, an origination fee, and/or a one-time PMI charge, then the settlement costs could get even higher.