Investors who want to wholesale a house, beware of the agent’s commission!

When investors look into wholesaling a house, they generally already have interested buyers and go in the transaction knowing that they will be able to pretty much immediately flip the house.

If you are a beginner, you want to pay attention to the costs of such a transaction. If you handle everything yourself, then you avoid the commission costs to any agent, which means you can nearly see your income as the difference between your purchase and sale price. However, either way, there are fees.

Continue reading “Investors who want to wholesale a house, beware of the agent’s commission!”

Paint Companies Use Scare Tactics on Californians to Cover Own Wrongdoing

Paint Companies Use Scare Tactics on Californians to Cover Own Wrongdoing

Paint manufacturers that lost a recent court ruling are using scare tactics to convince homeowners they will be held criminally liable if their homes contain lead-based paint, according to C.A.R.
 
A recent California court ruling against paint manufacturers will have little to no effect on individual homeowners whose properties contain interior lead-based paint. Instead, the court found that the paint companies created a public nuisance by promoting lead-based paint for interior residential use. The ruling requires the paint companies to pay the cost of abating lead-based paint in hundreds of thousands of homes located in 10 California counties and cities. The precise amount that the companies will be required to pay is still being calculated, but the companies will likely be liable for hundreds of millions, if not billions of dollars of remediation expenses. 
 
The ruling declared the overall danger created by lead based paint in residential housing to be a public nuisance but did not designate individual homes containing lead-based paint as public nuisances. The Court found the paint companies, and not individual homeowners, liable for the creation of the nuisance.

Since 1992, federal law has required sellers, landlords, and real estate agents to provide certain disclosures of lead-based paint and lead-based paint hazards in a transaction for a sale or lease of housing built prior to 1978.
 
According to C.A.R. President Steve White, “Current homeowners and home sellers need not remove or remediate lead-based paint prior to sale but should educate themselves if they choose to do so. Paint companies are attempting to qualify an initiative on the November ballot to absolve themselves of liability by shifting the burden of the expensive remediation costs onto the backs of California taxpayers, when taxpayers, in fact, are the victims. This is an appalling abuse of the initiative system to try to avoid reparations.”
 
In People v. ConAgra, the trial court found in 2013 that lead-based paint found in homes built before 1981 was a public nuisance and ordered ConAgra Grocery Products Co., NL Industries, and Sherwin-Williams Co. to pay $1.15 billion for the costs of inspecting more than 3.5 million California homes and apartments built before 1981. The paint companies appealed, and the California Sixth District Court of Appeals upheld most of the ruling last November, affirming the judgement against the paint companies with regard to homes built before 1951. Last month, the Supreme Court in California declined to review the Appeals Court ruling.

Smoke Alarm

Smoke Alarms are required in all buildings, residential and commercial. This page is about the history, functionality, and current requirements of smoke alarms.

How Does It Work?

Ionization (Modern Alarms)

Modern Smoke Alarms, first invented in the 1930s, use quite advance science. It has to detect that your house contains smoke (see What Is Smoke? below) early enough so you have time to escape. Continue reading “Smoke Alarm”

FHA 90 day Rule applies to the Insurance

The Federal Housing Administration (FHA), which was in part created by the National Housing Act of 1934, puts out various rules about their loan offers and insurance. In general these rules are expected to protect the market from a crash such as the Great Depression crash.

One of the rules, to limit price hikes, is to require flippers to sell homes 91 days after they purchased it. The time elapsed between the purchase and the sale must be at least 91 days. The attached document, Handbook 4000.1, FHA Single Family House Policy Handbook, includes the exact rules used by lenders to know whether an FHA loan is allowed or not. Continue reading “FHA 90 day Rule applies to the Insurance”

What is a HELOC? how does it work? Compared to a mortgage?

WARNING: I’m not licensed to offer mortgages nor a CPA. The following is just my opinion and should be taken with a grain of salt. Please seek professional advise before acting on any of the following.

What does HELOC mean?

The HELOC acronym stands for Home Equity Line Of Credit. It is often pronounced Hee•Lock.

As we understand, this is a way to get some money from your bank to use as required (Line of Credit) with the loan secured by your home (Home Equity as Collateral). In other words, the principal that you already paid on your home can be converted to a line of credit. Continue reading “What is a HELOC? how does it work? Compared to a mortgage?”

Dog Etiquette When Selling A Home

Photo of the dog via Pixabay by PaelmerPhotoArts

How To Buy Or Sell A Home With A Dog

Buying or selling a home is a big undertaking; there are tons of details to think about and plan for, and even if you have help from your family, it can be overwhelming. Keeping your current home neat and clean for potential buyers, looking for a new home, going through the actual buying process, and making a move are just a few of the things you’ll need to prepare for, and if you have a pet, there are even more considerations to think about. Continue reading “Dog Etiquette When Selling A Home”