Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Derreck Wells

Derreck Wells has started 12 posts and replied 530 times.

Post: De-leading vs. encapsulating

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

@Charlie MacPherson, first, everything I say is absolutely 100% true. The lead paint disclosure form you mentioned (located here PDF Download from EPA.gov) that is required on all sales is not informing people of the laws of the state of MA or any other state, it is a Federally supplied form and 9 out of 10 times the seller simply checks the "Seller has no knowledge..." box an hands it over. It doesn't state anywhere on the form that the new owner is liable to the past owner's tenants if they don't start the deleading process in 90 days. It also doesn't state that in MA you cannot rent to a family with a child under 6 unless you have a Lead Certificate on file with the state. Every buyer I have talked to about this says their real estate agent didn't tell about the lead laws. How many posts have you seen from people saying to just paint over it, or to encapsulate it, or to remove it, and they actually think this is legal? They think it's legal because their Agent didn't tell them about the Lead Paint laws... because they're not required to. In point of fact, the seller agent probably has a fiduciary responsibility to NOT tell the buyer about the laws that will require them to spend more money on the property. Their job is to negotiate the best price they can for the seller, not to give the buyer ammunition to use at the negotiation table. I would absolutely LOVE to see buyer's agents learning the Lead Paint Laws and educating the buyers on them. They should absolutely use them in negotiations at the very least, but that aside, it would protect buyers from the liability of past tenants, and most importantly, would help ensure future tenants are kept safe from Lead Poisoning. 

Second, I've been a Pro member on here for so long that my account is actually labeled a "Legacy Pro Account" when they bill my renewal every year. Back when I joined, there were 3 levels, Free, Plus, and Pro. Nothing I do violates BP rules. And yes, I copy and paste the reply, why would I waste time writing the same thing over and over and over and over again? That would just be foolish. It's the same information the people need. 

I'd also ask you this... do you know the lead paint laws in your states that you're licensed in? Do you educate your buyers on them beyond handing them the form so you can get your commission? Do you let them know that all contractors need to be RRP certified, regardless of lead paint status? (That's Federal law.) In MA there are a dozen or so topics that must legally be in every contract a construction company uses for any project over a certain amount of money (there may be similar laws in ME) do you tell your clients about those laws? No, of course you don't... you're not required to, so why would you?

Post: De-leading vs. encapsulating

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

Chances are your real estate agent didn't inform you of the lead laws (they rarely do). In MA, if the property isn't deleaded when you buy it, you are responsible for the past tenants that may have been lead poisoned while living there unless you delead within 90 days of closing. The state is trying to get every rental property in MA lead safe, and they figured this was the best way to do it.

You can use this in your negotiations on any future properties you look at. If it doesn't have a lead certificate on file, it IS going to cost you to delead, the state has pretty much made it mandatory at this point (at least if you want to avoid the liability of a lead paint lawsuit from a past tenant). Don't let that scare you though, I've had clients negotiate $20k off the selling price, and I only charged them $10k for the deleading, so it can actually work in your favor for it not to have been done yet.

You also cannot rent to someone with a child under 6 unless you have a lead certificate on file with the state. If you rent to a couple with no kids and they have a baby, you are then required to delead the unit with the added expense of putting the tenants up in a hotel during the process.

If a unit is a 2 or 3 bedroom, chances are you'll end up having a family apply. You cannot deny the family because of the lead paint either, that's considered discrimination (you're refusing them because they have a kid) and is against the anti-discrimination laws of the state. If there are kids under 6, you NEED to have the unit deleaded and have a lead certificate on file.

If the unit has been inspected, but not deleaded, you also cannot do any construction or remodeling in the unit, they consider that unauthorized deleading and it will prevent you from ever getting a lead cert. The best you would be able to get is a Letter of Environmental Protection, which tells everyone you did illegal work then hired a licensed deleader in to fix it. It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).

On the plus side, when you delead the property it will actually increase your tenant pool and the rent you'll be able to charge them. A deleaded unit is more valuable to a tenant then a non-deleaded unit, even if they don't have kids under 6, they still like to know they are safe from lead paint issues. Anyone can get high blood lead levels, the law only specifies under 6 because it affects the developing brain more severely then a it affects a fully developed brain.

Good Luck on your investment!

Post: Lead Paint Test and Potential Remediation

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

There is a lead disclosure form you are required by Federal law to give to every tenant when they rent a unit. If you don't you will get huge fines. In a recent case, a landlord was fined $110,000 for not giving the disclosure form to tenants. 

Chances are your real estate agent didn't inform you of the lead laws at all (they rarely do, though they should). In MA, if the property isn't deleaded when you buy it, you are responsible for the past tenants that may have been lead poisoned while living there unless you delead within 90 days of closing. The state is trying to get every rental property in MA lead safe, and they figured this was the best way to do it.

If it doesn't have a lead certificate on file, it IS going to cost you to delead, the state has pretty much made it mandatory at this point (at least if you want to avoid the liability of a lead paint lawsuit from a past tenant). Don't let that scare you though, I've had clients negotiate $20k off the selling price, and I only charged them $10k for the deleading, so it can actually work in your favor for it not to have been done yet.

You also cannot rent to someone with a child under 6 unless you have a lead certificate on file with the state. If you rent to a couple with no kids and they have a baby, you are then required to delead the unit with the added expense of putting the tenants up in a hotel during the process.

If a unit is a 2 or 3 bedroom, chances are you'll end up having a family apply. You cannot deny the family because of the lead paint either, that's considered discrimination (you're refusing them because they have a kid) and is against the anti-discrimination laws of the state. If there are kids under 6, you NEED to have the unit deleaded and have a lead certificate on file.

If the unit has been inspected, but not deleaded, you also cannot do any construction or remodeling in the unit, they consider that unauthorized deleading and it will prevent you from ever getting a lead cert. The best you would be able to get is a Letter of Environmental Protection, which tells everyone you did illegal work then hired a licensed deleader in to fix it. It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).

On the plus side, when you delead the property it will actually increase your tenant pool and the rent you'll be able to charge them. A deleaded unit is more valuable to a tenant then a non-deleaded unit, even if they don't have kids under 6, they still like to know they are safe from lead paint issues. Anyone can get high blood lead levels, the law only specifies under 6 because it affects the developing brain more severely then a it affects a fully developed brain.

If you want to message me the address, I can check the database and see if there was ever an inspection done on the property for you. I'll be able to tell if there's a lead cert on file already too. Maybe you'll get lucky and it's already been done.

Good Luck on your investment!

Post: First Timer in Waltham, MA

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

In MA, if the property isn't deleaded when you buy it, you are responsible for the past tenants that may have been lead poisoned while living there unless you delead within 90 days of closing. The state is trying to get every rental property in MA lead safe, and they figured this was the best way to do it. It is ALWAYS best to delead your buildings as soon as you buy them.

You can use this in your negotiations on any properties you look at. If it doesn't have a lead certificate on file, it IS going to cost you to delead, the state has pretty much made it mandatory at this point (at least if you want to avoid the liability of a lead paint lawsuit from a past tenant). Don't let that scare you though, I've had clients negotiate $20k off the selling price, and I only charged them $10k for the deleading, so it can actually work in your favor for it not to have been done yet.

In MA, you also cannot rent to someone with a child under 6 unless you have a lead certificate on file with the state. If you rent to a couple with no kids and they have a baby, you are then required to delead the unit with the added expense of putting the tenants up in a hotel during the process.

If a unit is a 2 or 3 bedroom, chances are you'll end up having a family apply. You cannot deny the family because of the lead paint either, that's considered discrimination (you're refusing them because they have a kid) and is against the anti-discrimination laws of the state. If there are kids under 6, you NEED to have the unit deleaded and have a lead certificate on file.

If the unit has been inspected, but not deleaded, you also cannot do any construction or remodeling in the unit, they consider that unauthorized deleading and it will prevent you from ever getting a lead cert. The best you would be able to get is a Letter of Environmental Protection, which tells everyone you did illegal work then hired a licensed deleader in to fix it. It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).

On the plus side, when you delead the property it will actually increase your tenant pool and the rent you'll be able to charge them. A deleaded unit is more valuable to a tenant then a non-deleaded unit, even if they don't have kids under 6, they still like to know they are safe from lead paint issues. Anyone can get high blood lead levels, the law only specifies under 6 because it affects the developing brain more severely then a it affects a fully developed brain.

If you want to message me any addresses you want to look at, I can check the database and see if there was ever an inspection done on the property for you. I'll be able to tell if there's a lead cert on file already too. Maybe you'll get lucky and it's already been done.

Good Luck on your future investment!

Post: Purchased a 4 unit Multi Family - Rents WAY below Market Value

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

Congrats on your new house!

Chances are your real estate agent didn't inform you of the lead laws (they rarely do). In MA, if the property isn't deleaded when you buy it, you are responsible for the past tenants that may have been lead poisoned while living there unless you delead within 90 days of closing. The state is trying to get every rental property in MA lead safe, and they figured this was the best way to do it.

You can use this in your negotiations on any new properties you look at. If it doesn't have a lead certificate on file, it IS going to cost you to delead, the state has pretty much made it mandatory at this point, at least if you want to avoid the liability of a lead paint lawsuit from a past tenant. Don't let that scare you though, I've had clients negotiate $20k off the selling price, and I only charged them $10k for the deleading, so it can actually work in your favor for it not to have been done yet.

You also cannot rent to someone with a child under 6 unless you have a lead certificate on file with the state. If you rent to a couple with no kids and they have a baby, you are then required to delead the unit with the added expense of putting the tenants up in a hotel during the process.

If a unit is a 2 or 3 bedroom, chances are you'll end up having a family apply. You cannot deny the family because of the lead paint either, that's considered discrimination (you're refusing them because they have a kid) and is against the anti-discrimination laws of the state. If there are kids under 6, you NEED to have the unit deleaded and have a lead certificate on file.

If the unit has been inspected for lead but not deleaded, you also cannot do any construction or remodeling in the unit. They consider that unauthorized deleading and it will prevent you from ever getting a lead cert. The best you would be able to get is a Letter of Environmental Protection, which tells everyone you did illegal work then hired a licensed deleader in to fix it. It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).

If you delead the property it will actually increase your tenant pool and the rent you'll be able to charge them. A deleaded unit is more valuable to a tenant then a non-deleaded unit, even if they don't have kids under 6, they still like to know they are safe from lead paint issues. Anyone can get high blood lead levels, the law only specifies under 6 because it affects the developing brain more severely then a it affects a fully developed brain.

If you want to message me the address, I can check the database and see if there was ever an inspection done on the property for you. I'll be able to tell if there's a lead cert on file already too. Maybe you'll get lucky and it's already been done.

Good Luck on your investment!

Post: Marijuana - Can you ban it from your property in NH?

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

Weed is illegal here in NH unless you have a medical card. Recreational use is not legal here yet. 

https://www.dhhs.nh.gov/oos/tc...

Post: Somerville, Massachusetts: Questions about Section 8

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269

Congrats on your new house!

Chances are your real estate agent didn't inform you of the lead laws (they rarely do). In MA, if the property isn't deleaded when you buy it, you are responsible for the past tenants that may have been lead poisoned while living there unless you delead within 90 days of closing. The state is trying to get every rental property in MA lead safe, and they figured this was the best way to do it.

You can use this in your negotiations on any properties you look at. If it doesn't have a lead certificate on file, it IS going to cost you to delead, the state has pretty much made it mandatory at this point, at least if you want to avoid the liability of a lead paint lawsuit from a past tenant. Don't let that scare you though, I've had clients negotiate $20k off the selling price, and I only charged them $10k for the deleading, so it can actually work in your favor for it not to have been done yet.

You also cannot rent to someone with a child under 6 unless you have a lead certificate on file with the state. If you rent to a couple with no kids and they have a baby, you are then required to delead the unit with the added expense of putting the tenants up in a hotel during the process. I believe Section 8 requires a lead certificate on ALL units, but I'm not 100% sure on that.

If a unit is a 2 or 3 bedroom, chances are you will end up having a family apply. You cannot deny the family because of the lead paint either, that's considered discrimination (you're refusing them because they have a kid) and is against the anti-discrimination laws of the state. If there are kids under 6, you NEED to have the unit deleaded and have a lead certificate on file.

If the unit has been inspected for lead and lead was found but not deleaded, you also cannot do any construction or remodeling in the unit. They consider that unauthorized deleading and it will prevent you from ever getting a lead cert. The best you would be able to get is a Letter of Environmental Protection, which tells everyone you did illegal work then hired a licensed deleader in to fix it. It generally increases your insurance rate and decreases your tenant pool (who wants to rent from a shady landlord that does illegal work?).

If you delead the property it will actually increase your tenant pool and the rent you'll be able to charge them. A deleaded unit is more valuable to a tenant then a non-deleaded unit, even if they don't have kids under 6, they still like to know they are safe from lead paint issues. Anyone can get high blood lead levels, the law only specifies under 6 because it affects the developing brain more severely then a it affects a fully developed brain.

If you want to message me the address, I can check the database and see if there was ever an inspection done on the property for you. I'll be able to tell if there's a lead cert on file already too. Maybe you'll get lucky and it's already been done.

Good Luck on your investment!

Post: New Real Estate Investor in New England

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269
Originally posted by @Deron S.:

@Eddie Gonnella You mentioned one of the concerns with houses in Maine is their age.  How big of a problem is lead based paint in homes?  Is it expected as landlords that we remove it before we have tenants ?

Lead Paint Laws vary by state. There are federal EPA laws that need to be followed in every state that include RRP. You can learn about those on the EPA website. State laws, however vary and you need to look up Maine's laws on the subject. Some states have no additional laws over the EPA's, others like MA have super strict laws. Do your research before you buy a house built before 1978 as you can use lead based paint as a negotiation tool.  

Post: New Real Estate Investor in New England

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269
Originally posted by @Ed Emmons:

@Deron S. above you referenced lead paint. You do not need to get rid of lead paint in Maine before renting it out. The only concern is with young people real young and if you encapsulate it meaning have no peeling paint no chips but you covered up with a latex paint you should be fine. Sometimes it’s only around the trim areas and it would make sense to replace the trim but that is usually not the case. 
if you are renting to low income tenants with children Who like to put things in their mouths and they have had lead paint poison from a previous landlord they can test the child and if it comes up positive, they can come back to your place. Even though the poison didn’t come from your apartment. So you definitely don’t want peeling or chipped paint anywhere that a young child could eat it. It is just good maintenance practice anyway because people can have visitors come over and run into the same situation.

What you say here is not even close to legal, nor is encapsulating lead based paint done by covering it up with latex paint. Latex paint doesn't encapsulate the lead at all. Encapsulant is a special coating, almost like liquid rubber, that needs to be applied to specific thickness and tests need to be done to the components to determine if we can even encapsulate. Sometimes we can't. If someone in MA did what you suggest here they would be fined huge amounts. There are very specific laws on who can delead an apartment, what components need deleading, what methods we can use on different components, and how we clean up after we're done. If I even have the wrong shop vac on site, I get fined $32,500. 

You changing trim that has lead paint on it is actually worse then you leaving it in place. Trim isn't where lead poisoning generally comes from, windows, window stops, doors, and door jambs are the worst offenders. Where the parts rub, they make dust, this is the most common culprit. That dust ends up everywhere and the kids get it on their hands and then into their mouths, eyes, and noses.  

You are correct in that you should keep surfaces with lead based paint intact. Unfortunately that's not always possible as the paint comes detached from the surface below. Any amount of paint over top of it won't hold it in place. 

Post: Closing Monday, Auction prop, found out basement full of SH$!

Derreck Wells
Pro Member
Posted
  • Specialist
  • Pelham, NH
  • Posts 544
  • Votes 269
Originally posted by @Brian Pulaski:

@Derreck Wells that would cost me about $3000-4000 to have done. Wish I could get it done for $1000 around me.

Brian, I'd charge $3000-$4000 for something more like this, with the drain around the edge of the basement.

 But a simple hole with a sump in it is only about $600 in materials and a day's labor.