Aside from fear of the actual toxic substances in the soil or water, the fear regarding hazardous waste property is the fear of liability for remediation - cleanup. Under federal law, anyone in the chain of title is responsible for cleanup, starting with the first polluter all the way to the innocent current owner. Ironically, that widespread and little understood fear is what makes these such wonderful investment opportunities!
Sometimes the presence of hazardous waste is only a myth - the property is a stigma property. Just because someone operated a dry cleaner at a location for thirty years does not mean they dumped chemicals into the soil at the back door. An environmental engineer can conduct the proper tests to confirm the presence or absence of hazardous waste.
Usually, properties with such reputations do indeed have some toxic substance in the soil or in the groundwater. The property owner often feels helpless, unable to sell the property, and fearful that the federal or local environmental agencies will require him or her to clean up the soil or water. Such people will often pay you to take the property off their hands.
Brownfields is another name for real estate with low-level hazardous waste issues - real or perceived. Property with high levels of waste and toxins are called superfund sites. Most of those are outside the reach of beginning investors. Here are the secrets about brownfields that few people understand. If you learn more about them, you can specialize in such properties and quickly build a substantial investment portfolio.
1. Most states have incentive programs for people to buy brownfields and clean them up for redevelopment. Some programs will reimburse you for the entire cost of cleanup, except for a small deductible. Others offer outright grants, tax incentives, or low-interest rate loans.
2. You may have toxic substances, but they may be within permissible levels. In other words, you may not have to do anything to clean up the site.
3. Many times, if the toxic substances are in the soil but not in the groundwater, you can seal them off with a parking lot or concrete building pad and not be required to do anything else.
4. There are many, many methods of remediation. Only one of them involves digging up all the dirt, paying to haul it to a toxic waste disposal site, and then replacing it with clean dirt. There are some very inexpensive clean up methods that involve processes happening over time, as you are using the property. It is important to have an approved plan, and then to implement the plan.
This is an exciting investment field with almost no competition, especially if you can find an engineer or lawyer for a partner. Your partner can supply the technical know-how regarding the legal requirements, and perhaps even some or all of the development money. You supply the time. Everyone wins.
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Note: This article was sent to us by: Wayne G. Cadill at 06282010
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