EPA & Lead Based Paint

[Aaron Mazzrillo]

This came from a hard money lending in southern California. If you're rehabbing and flipping properties, be sure you are following the new lead based paint guidelines.

"They are searching rehabbed sold properties on the MLS and looking up investors/sellers/buyers with multiple properties and then performing an audit of their disclosures and to make sure painting procedures are being processed correctly. The laws changed a couple of years ago with regards to how you deal with lead based paint and gave more power to the EPA. This is currently happening to people we know including ourselves. We are fortunate that our painter is licensed and EPA certified and we get the required paperwork prior to work commencing and we also provide the disclosures required by law to the new occupants. I would also check your rental portfolio's as there are required disclosures to tenants as well as buyers. Fines are not cheap so I would make sure you have ducks in a row. We were told their goal is to work through most of the transfers occurring once they are staffed up. Currently they are understaffed so they are only looking at the larger players and working their way down to multiple buyers at the mid level. However, when they do contact you they require all of the properties you have done and related entities since the law took effect."

Get your ducks in a row ladies and gentlemen.