So what is the big deal with mold?
It’s something that has been around as long as man, yet in recent years, it has really become an issue within the real estate industry. It has caused many investors to shy away from properties that have mold…
But if you are smart, you will have embraced it rather than run from it.
Steve Cook here with a lesson about making money from mold.
Money in mold
First, let’s get a better understanding of what mold really is.
The purpose of mold is to break down dead materials such as plants, leaves, animal feces, etc…
Not all molds are harmful, but some are. Mold can be found indoors and outdoors. It travels through the air that we breathe in the form of spores. When mold settles on an area that it can grow, it often grows in patches known as colonies.
I can assure you that every single home you will buy and the home that you are currently living in has some mold in it.
Our concern is obviously going to be harmful molds. I’m not an expert nor am I going to teach you what is harmful and what is not. Instead, I’m going to teach you to fix all the problems from mold.
Where good molds grow, harmful molds can too, so it is in your best interest to fix the problem. The good news about mold is that it is a curable problem. Mold needs moisture, food and a surface to grow on. Where there is moisture, mold can usually grow, and it is probably the biggest culprit to harmful molds within homes.
Mold makes sellers motivated
Now that you know a little bit about mold, let’s talk about how it makes sellers motivated to sell their properties.
People are scared of mold. They are running from it, and if you own a home and discover that it has mold in it, you’d be scared to sell it to anyone.
People who own homes with mold in them are panicking, and they are selling cheap in many cases. Sellers want to get rid of this problem. If you can buy these homes cheaply, and at a deep enough discount to remedy the mold problem, you can find yourself many more profitable deals.
With that being said, the cleanup of mold is not that difficult.
Sometimes it is easier than others, but it can be done during the normal course of a renovation. In extreme cases where mold has gotten behind walls and into the insulation, you may have to gut the whole home to remove the mold and the environment that it is growing in.
This is something that I do all the time.
It would be wise to have a professional come in after your cleanup to certify that your home is free of harmful molds. Document your whole process. If they find additional mold, let them clean it and certify that your home is free of harmful molds.
Most importantly, you need to stop the cause of what allowed mold to grow. This is usually a leaking pipe, a leaking roof or standing water. Find the source of the moisture that is allowing mold to grow and stop it.
Once you know the process of working with homes that have mold, this can become a niche worth pursuing. Learn the costs for remediation and factor this into your offers. Some possible sources for finding mold contaminated-properties are insurance companies, HUD and bank-owned properties.
And that’s how there’s money in mold, friends.
I’m listening
Tell us about your experiences with mold and deals in the comments section below.
Familiarize yourself with mold and the process for safely removing it.
Don’t shy away from a house just because it has mold – if removed safely, you could have a goldmine.
Look into these sources to find mold-contaminated deals: insurance companies, HUD and bank-owned properties.
Learn the costs for mold remediation and factor it into your offers.
Steve Cook
was a nationally recognized real estate investing educator, author and real estate investor, prior to teaching Lifeonaire life coaching system. Today he is regarded as "The Coaches' Coach." Many of the people who have been coached by Steve have become coaches themselves, eager to share what they have learned with others.