Post by Mike Blank, MBC Building & Remodeling

The EPA rule requires lead-safe work practices in pre-1978 homes, including posting warning signs; using disposable plastic drop cloths; cleaning the work area with HEPA vacuuming and wet washing; and individual certification through a training course. The full rule and brochures for consumers can be downloaded from the EPA’s Web site.

A 2006 NAHB study on lead-safe work practices showed that a home was better off after a remodel than before, as long as the work was performed by trained remodelers who clean the work area with HEPA-equipped vacuums, wet washing and use disposable drop cloths.

Summary of the Rule

1. Training and Certification

As of April 2010, remodeling firms working in pre-1978 homes need to be certified. In addition to firm certification, the company must employ a Certified Renovator. When hiring a remodeler, home owners should verify the firm is certified and employs a Certified Renovator to be sure the work is completed properly.

2. Work Practices

The Certified Renovator has a number of responsibilities. The remodeler must distribute the Renovate Right brochure to the homeowner and ask them to sign the pre-renovation form several days before work begins. They must also post warning signs outside the work area and supervise setting up containment to prevent spreading dust. The rule lists specific containment procedures for both interior and exterior projects. It forbids certain work practices including open flame or torch burning, use of a heat gun that exceeds 1100°F, and high-speed sanding and grinding unless the tool is equipped with a HEPA exhaust control. Once the work is completed, the regulation specifies cleaning and waste disposal procedures. Clean up procedures must be supervised by a Certified Renovator.

3. Verification and Record Keeping

After clean up is complete the Certified Renovator must verify by matching a cleaning cloth with an EPA verification card. If the cloth appears dirtier or darker than the card, the cleaning must be repeated.

A complete file of records on the project must be kept by the certified renovator for three years. These records include, but aren’t limited to: verification of owner/occupant receipt of the Renovate Right pamphlet or attempt to inform, documentation of work practices, Certified Renovator certification, and proof of worker training.

Starting in July 2010, remodeling firms are also required to share with home owners a copy of the records created under the rule within 30 days of completing the renovation.

4. Exemptions

It is important to note that these work practices may be waived under these conditions:

• The home or child occupied facility was built after 1978.
• The repairs are minor, with interior work disturbing less than six sq. ft. or exteriors disturbing less than 20 sq. ft.
• If the house or components test lead free by a Certified Risk Assessor, Lead Inspector, or Certified Renovator.
• The homeowner may also opt out by signing a waiver if there are no children under age six frequently visiting the property, no one in the home is pregnant, or the property is not a child-occupied facility. The EPA is revoking the opt-out waiver as of July 2010. This means all remodeling work conducted in pre-1978 housing must comply with the regulation after this date.

Learn more about EPA’s lead paint rule by visiting www.epa.gov/lead/pubs/renovation.htm.

Mike Blank, CGR CAPS, President

MBC Building & Remodeling, LLC

cell: (717) 371-5136

Regarding a recent customer letter about Sheriff Sales, I thought I’d post my reply for the edification of the deal-hunters in training out there. These are my opinions & observations – give me a call for more detail if you’re interested!

1. Homes at the Sheriff Sale that have value will be sought after by professionals, of which there are about 4-5 at every sale. A good value consists of low outstanding loan balances, good location and acceptable condition. Those houses get bid up pretty high, and it’s absolutely critical to know your margin to a fine degree. The pros bring laptops with each auction detailed with estimated resale, top bid and other notes to help keep everything straight during the sale. You should try to attend the next one to see how things flow. One other thing – you’ll need to research and have at least 5 properties you want to invest in – because at least 2 of those will get pulled just before the sale date (due to a stay issued by the judge) and the pros will get at least 2 others from you…

2. Under a Sheriff or Tax Lien (public) sale all responsibility rests upon the purchaser to handle everything. If there’s a hidden lein or if someone needs evicted, or if there are huge water bills owed, the purchaser gets to deal with it. There’s no help from anyone in a public sale situation.

Bottom line - Public sales are very risky for first-time investors, and should only be undertaken with tremendous prior preparation and thorough funding. Only a very few of my customers ever go this direction in the end. Depending on your business goals, I’d recommend that you try to purchase either:

1) An open-market foreclosure (there are lots more out there these days – I can email you daily updates if you wish). These sales have had the title cleaned by the lender before being re-offered to the public. I sell a lot of these to investors, and the key is to be able to jump on a good one the same day. If the seller decides that there might be some more money to be milked out of a buyer, they’ll immediately announce what’s called a “highest and best” deadline for all interested parties. Again, you need to really know your numbers, be it resale or rental income vs. expenses.

2) HUD resales - every Friday watch www.hooksvanholm.com, which is the PA outlet for gov’t foreclosure sales. Not as much inventory, but the titles are clean and they make it easy. The competition can be fierce because everyone knows about this but once in a long while you can catch an opening and get a deal. The bidding is all done sealed online through an authorized broker (which I am one). Investors have to wait a week to bid but it gives you a few days to do your numbers before placing your bid – a rare convenience in this game.

Hope this helps – let me know what you’d like to go after! I can meet you for coffee some time if you’d like to go over your business plan in more detail.

I work with many Lancaster PA real estate investors, folks buying homes to rent or rehab. Over the years I’ve gotten into many conversations about how to improve those properties. Recently I’ve become addicted to Twitter and enjoy the interaction with the community. One of my friends on Twitter is Erika from www.Investorloft.com. This website is a great resource for real estate investors and is also growing. I’m proud to offer some home improvement advice from Investorloft in this space today:

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Five Easy Rental Property Improvements that Won’t Break the Bank

Sometimes we have to face the reality that it’s time to spruce things up a little bit at our rental properties. However, improvements often mean down time between tenants – so how do we make decisions that will:

• Improve aesthetics

• Up our asking rent

• Result in as little downtime as possible between tenants?

Here’s a list, courtesy of www.investorloft.com, of five simple improvements that you can do to your rental property in less than two days that won’t only NOT break the bank, but result in virtually no downtime between tenants!

• A Fresh Coat of Paint: If you stick with a neutral color in a high-hiding variety that will go on in one coat, you’re done in a day! True Value has a handy paint calculator that will help you figure out just what you need. Don’t go for designer varieties – stick with staple colors from major paint manufacturers so you can get more when you need to touch up or paint again.
• New Baseboards: With the advent of the “no-mitre” variety, you can now just install all of your corner and radius pieces and make straight cuts. This decreases install time significantly. Check out Home Depot and Lowes as they generally have baseboards in contractor packs in sizes up to 3.5 inches. Get a contemporary look with low wallet impact. Hint: use a satin or kitchen & bath finish paint in Swiss Coffee instead of traditional white – shows less wear and can be wiped clean! Most condos and homes can be demo’d in a half day and re-installed in one. Paint your baseboard strips the same day as the demo to speed-up the process.
• Get Rid of that Grass! Xerascaping (also known as desert landscaping) is not only eco-friendly but easy to do as well. If you live in water-sensitive areas like AZ or NV, often the government has a program to PAY YOU to remove your grass and replace it with low-maintenance landscaping. Having a yard that a tenant does not have to keep maintained not only increases the desirability of your property to prospective tenants but lowers water bills, increases curb appeal and will make your property inherently “pet friendly” too!
• Plumbing Fixture Update: It’s a breeze to install new faucets and showerheads, so hop on it! They’ll spruce-up a lackluster sink or shower and lower your maintenance costs in the long run. Keep them fresh and even if you’re not the “handy” type, your property manager will have a handyman who can go in and replace everything for you in one day.
• Lighting Fixture Update: There are so many attractive, low-cost lighting options available that it’s time to put those “Hollywood lighting” bath bars to rest (permanently). Look for options where the sconces are upward-facing so you can use compact flourescent bulbs to save energy (especially important if you’re including utilities in the rent). For closets and hallways, flush-mount flourescent fixtures like these are not only cost-effective but easy to install as well!