Phase 1 Environmental Reports with Mike Renz [Capital Cashflow #13]

In this episode, Abraham talks with Mike Renz. Mike is a hydro geologist at Renz & Associates. With 35 years of experience, he has performed thousands of Phase 1 Environmental Reports, many for mobile home park owners.

http://www.renzandassociates.com/

Some quick info on Phase 1's:
1. A phase 1 is an environmental report that protects property buyers in case contamination is later found.
2. If you buy a property without doing a phase 1 and there is contamination, you can be held liable for the cleanup (which can range from tens of thousands to tens of millions).
3. Mobile home parks are more likely to have environmental contamination than apartments, for example. Agency lenders (such as fannie mae & freddie mac) require them, as do many local lenders.
4. Phase 1's also help you when you go to refinance, redevelop, or resell the property. Often phase 1's can be updated for the new buyer, so they do not have to duplicate the new study.

Tips for picking a Phase 1 firm:
1. Referrals are important (we highly recommend Renz & Associates, which is why we had Mike on the show!)
2. Choose a firm with experience.
3. Smaller firms are better, if the guys doing the reports are in suits looking like lawyers, that will give you a clue of what they will bill you for
4. Make sure they have good insurance
5. Check if they will allow you to back out after the report is ordered

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