Investing: What You Need to Know About Former Drug Houses
Methamphetamines are a very real problem, and so are the houses these drugs are manufactured in. Several former methamphetimine labs hit real estate markets across the country each day, and many of them still contain highly toxic contaminants. What’s worse is that some buyers aren’t even aware that there are toxins in the home.
If you’re looking at the deal of a lifetime, don’t be certain it’s not a wolf in sheep’s clothing… and proceed with caution.
Health Issues From Former Drug Houses
While there are some telltale signs of illegal drug manufacturing, it’s what you don’t see that presents a problem. The health issues many people experience from being unaware of these toxins’ presence can range from a headache to death.
Disclosure issues vary from state to state. Even if the home was a known methamphetamine manufacturing operation, there may be no duty to disclose this information to a potential buyer. Georgia is among a number of states with no disclosure requirements, so it is definitely buyer beware.
Is it Worth It?
Are these meth lab homes worth the cost of decontaminating, flipping and trying to make a profit? Some investors think they are. Depending on the extent of the contamination in the home, you could be looking at tens of thousands of dollars to “rehabilitate” it. That’s not to say you won’t be able to make a profit from your flip—you just need to be aware of what you’re getting into and let the experts handle the cleanup.
Do You Need a Hard Money Loan in Atlanta?
If you’re looking for a hard money loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.
Read our frequently asked questions and take a few minutes to learn about the hard money loan process.