Becoming a licensed lead remover to work on your own investments?

Question

Hi BP,

I hope you are all doing well. I have been looking at properties across the South Shore and a lot of them are full of lead paint... It has been a deal breaker for us because we are looking to rent the properties out, and we do not want to raise any red flags with discrimination and children under 6. I have heard stories of owners forced to remove lead and costing them tens and thousands of dollars, all relevant to how bad/how much lead there really is.

This road bump has really made me consider becoming a licensed lead remover in MA... I don't want to remove lead full time for a company, I just want to be able to remove lead on my own properties.

Have any of you investors considered becoming a lead remover in order to work on your own properties?

Thoughts on this? - The potential lead infested properties would be owned under our LLC, and the LLC would potentially hire me, the licensed remover, to complete the job.

I think there are other investors out there in my shoes. Please chime in and let me know if you have considered doing this, or have done it, and what was the outcome? Have you been able to remove lead on your own properties? Are you able to cut down costs?

Fire away! - Steve

Derreck Wells · Answer

The more intelligent route here isn't to get licensed for lead abatement, it's to use the fact that there's lead paint to negotiate a better purchase price because you have to delead.

I've given you the "format". Assume $5k per unit counting the exterior as a unit. A 3 family becomes a 4 unit. Negotiate $20k off the asking price for lead paint removal on that 3 family. Look at the windows, if they're replacement, there's less expense,  the windows won't need replacing. If they're original, use that too. Figure $300 per window to replace and add that on to the negotiations.

There are programs out there to help, some 0% interest,  some grants, and loans that only become payable when you sell the property so it's kind of like a lien on the property. You can save money by negotiating a lower purchase price, then get the loan and add a ton of value by deleading, then when you sell, you'll make a small fortune and never put out of pocket to delead.

Steve Porcello · Answer

@Victor Eng Thank you for your response, I appreciate the info!

@Derreck Wells

Derreck,

Thank you for replying, you make some great points. I understand that the containment practices can make the cost of the project add up, as well as the initial costs of buying equipment, licensing etc..

I am still considering moving forward with obtaining the lead removal license, as I do the rehab myself. I do have another thought I'm sure you could elaborate on.

Say I bought a single family house, and it was just absolutely full of lead paint. On the windows, in the door jambs, on all of the trim, on the walls, and so on. If I was going to have the lead legally removed, I would consider removing all of the wood, all of the drywall, and anything with lead on it. When I say "remove" I mean completely taking the wood out, and replacing it with brand new material, rather than stripping the lead off of the existing material. I recently looked at a house that had 10 lead covered windows, about 8 lead covered door jambs, and the majority of the walls were painted with lead. I know walls are a little different because they are not always "bite-able", but I think I would rather remove all of the lead material and replace it in this situation rather than stripping and leaving the existing material.

Any thought on this? Removing completely vs stripping? What would the ballpark figure be to completely dispose of 10 windows, 8 door jambs, plus a few walls?

Thanks again in advance,

-Steve

Victor Eng · Answer

@Steve Porcello

The licensing process is relatively simple. Deleading course + bloodwork will probably run you $500-$750 tops. However, the barrier to entry is the execution of the actual de-leading. There are strict rules on containment, proper methods, disposal, air testing etc that may make it un-economic to do it yourself. The hardest part is passing of the wipe test in the end. Most DIY run into issues with improper cleaning and end up having to do 3 re-inspections before passing, which runs about $350-$400 per test. Additionally, you'll need to buy protective poly sheeting, make a capital investment on a HEPA vacuum, get a air filtration machine etc. It can all be done, but requires the extra effort.

You can think of it the same way for a construction project. You can get a CSL to be your own "GC" and pull permits and do the carpentry work / sheetrocking, but would you be better off hiring a GC with an existing CSL.

I can shed more light on this should you have any questions. Happy to help.

Derreck Wells · Answer

Well... how much is your time worth? I'm not making any more money then any other "regular" contractor. It costs more to remove LBP simply because of the containment practices I have to follow. They add about 40-50% to the job total. You would have to follow those same practices, so the only thing you'll be saving is the cost of labor. Is your time worth more than the going construction labor rate? You would be taking on the added expense of classes (RRP and lead abatement), licenses (state delead and contractor), EPA registration, specialized equipment (the shop vac I was required to buy cost over $500), and continuing education and re-certification classes. Your savings would equal the going labor rate.

Do you currently do all the rehab yourself? If you do, then it might be worth looking into. If you hire out your rehab because your time is worth more, then it wouldn't be worth it.

Becoming a licensed lead remover to work on your own investments?

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