All Forum Posts by: Dustin Palls

@Bill S. I'm with on the juice not being worth the squeeze. I get it and that is why I will pass. It's not worth the headache. 

But I am amazed at how you are throwing around the phrase "get caught" etc. I don't believe that any part of what I mentioned was against the law or any other regulations I am aware of. 

@Chris MasonSo it looks like my complex meets all of the requirements other than the fact that we don't have any reserve funds... In the past each owner has paid their share of the "larger" projects... assessments, etc.

Does this automatically make the complex non-warrantable? And if so, can you recommend a lender for an OO non-warrantable condo such as this? I am looking for a 30 year FRM.

Thanks.

@Bill S. I may test and see what comes back... I can appreciate the fact that my experience/knowledge doesn't shine through on some internet forum, so I don't take offense to your comments. I dropped out of dental school (when I realized I wasn't making money fast enough) after being accepted with a 4.0 gpa in undergrad... many of the courses which I have taken are firmly rooted in chemistry... I could probably make the stuff if I had a mind to! LOL

I was planning to strip the home to the studs/rafters... no insulation. The home is so old there is no central air system... furnace would be new, duct work new... EVERYTHING NEW.  I'm pretty sure I could research and find the correct/safe/legal (as you all seem to put it) manner in which to remove/dispose of these potentially hazardous materials along with the right chemical/cleaning agent to pressure wash any meth residue from the structure's skeleton...

With all that said, it doesn't seem like much fun and I think I will pass on this deal, and by the way I would be giving the same advice as everyone here if some anonymous "investor" asked about this online... so I appreciate the words of wisdom.

The thing that isn't clear to me is: would I, or would I not be breaking the law by continuing with my "plan"?

I haven't seen anything supporting the fact that what I want/wanted to do is illegal. There has been no testing performed. There have been no police reports that document or point to illicit activity on the premises... So how would this (in a legal sense) be any different than an investor buying a home to flip and doing a reno? 

Where does the liability fall? 

I have not been formally notified of any meth used/cooked in this home. It is only because I am personally familiar with the community that the though even crossed my mind at all...

I agree the risk is likely too much when considering the reward. I was trying to quantify that risk as difficult as that may be...

I am going to pass on the property. 

Thanks for the advice Everybody!

@Desirae Putzier

Ok, first, when I say "meth lab" I am referring to any property contaminated by the manufacture or use of methamphetamine. 

Second, why won't you answer my questions? I am *speculating*, as did the local police, that this property *may have* had meth used/manufactured in it... I want to know what the state regulations say about someone that purchases a home (me in this scenario) with no formal knowledge that meth was used/made in the home... cleans up/rehabs the home?

You say the "right way"... we aren't dealing with radioactive waste here. If the home is stripped to the studs, and I personally do the work, wearing a P99 full face respirator along with full body disposable suit... the place is aired out, I give the chemicals time/heat to volatilize... EVERY surface in the home is replaced/renewed... please explain to me how it would be possible for contamination to remain? Are you completely demolishing structures in the "abatement" of methamphetamine contamination? 

I work very closely with a Class A contractor. I am in the process of obtaining a Class B license myself. I am very familiar with asbestos abatement and the issues surrounding it. I have personally never dealt with meth contamination before. I don't mean to be rude but I don't see what you/your company could do that I couldn't do... unless for some reason I was legally bound to use such a company, which I believe (at least in THIS circumstance) I am not.

You may have your opinions, as I have mine, but I am trying to determine whether or not the situation as outlined above is in compliance with Colorado law... again I realize that once I ASK for a test and the test is hot, that everything is THEN regulated by the state. But why would I do that (not rhetorical)? A valid reason hasn't been demonstrated to me at this juncture.

Thanks for your insight!

Dustin

@Chris Mason Great, thanks again!

@Desirae Putzier

Please explain to me how my purchasing an old, run-down foreclosure and cleaning it up followed by a remodel would constitute an "abatement" of a meth-contaminated property? It is my understanding that until a test is conducted and the positive results of said test are filed with the state, no "meth lab" exists... Nobody is asking for/pushing for a test, which is precisely why I am inquiring about this topic. If I WERE to request a test, and the results of which were positive, THEN you would be correct in the fact that I couldn't legally clean it up. Hence, I would be forced to pay a company like yours to do what I believe I can do. Regulations surrounding this issue are relatively new and vary by state... some states simply list instructions for "cleaning up" the "contaminated" property... the same steps that companies like yours are trained to follow I would assume.

@Bill S. I see what you are getting at. I was thinking along similar lines when I initially posted. I guess this may be a question for an attorney. But A., I don't plan to sell the home only rent it, B. there is no "meth house" to my understanding, at least not until I ASK (because no one else involved seems concerned) for a test that results in positive findings... If I "cleaned it up" (the way any investor would clean up any home to be remodeled, i.e. this home is OLD, plaster and lathe... would replace with sheet rock, EVERY surface in the home would be new) and later conducted a meth test ONLY to satisfy my curiosity... and said test results were negative, where is the meth house? Where is my liability??

@Chris Mason Thanks! So what about Freddie? Same thing? Anything else I should know about that is "different" in regards to establishing warrantability in an eight unit complex?

I found a great deal on a Fannie Mae property. I am concerned because both neighbors mentioned "there were lots of drugs done in there" when I visited the property. All of which is speculation, so I decided to contact the local police. When I had given them the address their faces lit up. I was told that officially no busts/incidents/police reports involving the property in question exist. BUT I was also told that given the fact that both of the police officers to whom I had spoke knew of the previous owner and the company they kept (small town), that there is a "good chance" meth was used in the home.

What do I do with this information? Am I legally responsible if I rehab the house and rent it and someone gets sick? Do I ask for a test to be conducted prior to closing? If so and the test comes back hot, the state will then be involved... regulatory issues galore. The meth abatement could quite possibly bring rise to an asbestos abatement (old home)... which would in effect make this property worthless to me.

I HAVE NO INTENTIONS OF RENTING THE HOME UNTIL I AM CERTAIN IT IS SAFE TO DO SO.

What I can't wrap my head around is the following:

1. I can most certainly perform all of the "clean up" that an abatement company would, without being regulated by the state, for a 10th of the price. (I have the necessary skills to do so, SAFELY). 

2. I have no definitive legal proof that meth was ever even in the house.

3. If I had the house tested post-rehab and everything came back clean, wouldn't it all be the same in the end anyway, i.e. the house will have been abated/cleaned up and safe to live in?

Obviously I don't want anyone to live and work in an unsafe house, but could someone with experience here tell me to what extent these so-called "Meth-Labs" are "cleaned up"? I would like to purchase, THOROUGHLY decontaminate just to be safe, rehab, test and then rent. The only issue I see here is if for some reason it doesn't pass the test post-rehab, I will then have wasted a considerable amount of money as the liability/ethical issues surrounding its rental or sale would be too great to assume.

Any advice here is greatly appreciated!

Dustin

I own a condo in a nice, but small complex... 62.5% of the units are owner occupied... no litigation issues... no delinquencies... good reserves. But are we "non-warrantable" because technically EACH of the eight owners holds 12.5% of the complex?

I'm referring to a guideline that I have seen many times stating that "no one owner can own more than 10% of the units within a given complex" in order for said complex to remain "warrantable".

Can anyone please shed some light on this for me?

Thank you for your help!

Dustin