> Continued from :: PG 22 WhyMortgage Applications Have to Change also to federal, state, and local laws and regulations which affect developments and infrastructure and their owners and inves- tors. Also affected will be the insurers that will be dealing with claims and trying to create the next generation of underwriting guidelines and policy cov- erage. Other relevant and highly probable multi-haz- ard risks with climate change include greater occurrences of tropical storms and hurricanes, flash flooding, droughts, land subsidence, forest fires, and heat waves.” The bottom line: un- derwriting guidelines will need to be revised in the face of climate change. The National Oceanic and Atmospheric Administra- tion already has a “Sea Level Rise Viewer” online which shows which prop- erties will be inundated by rising water levels. In 2018, natural disas- ters produced $91 bil- lion in damages, a sum property insurers cannot ignore. Whether the issue is floods, winds, or wild- fires, in the end, mortgage underwriting standards will have to evolve. The practical effect is that more and more areas will face “managed retreats,” a polite term that increas- ingly will mean mortgage financing is unavailable. As we look into the fu- ture, changes abound. Just as home buying patterns,

that hiring someone who is licensed and insured will drive up their rehab cost and eliminate any profit. While using licensed and insured professionals may cost a bit more, hiring someone who is inexperi- enced or isn’t adequately insured could end up hurting your livelihood far worse. Simply put, if you can’t afford to do a project safely, it is probably not the right deal. FINAL CLEAN-UP Whether you’re the one swinging the hammer or the one calling your general contractor for progress reports on your rehab, educating yourself about the entire construc- tion process can help you reduce unnecessary and costly injuries. This knowledge may impact the type of deals you buy too; carefully consider how much work will need to be done and if you can afford to do it safely. Rushing the rehab process at the cost of safety or selecting a contractor without the proper experience and insurance protection can rack up a list of liabilities you don’t want to pay for. • of money from repairing property damage to clean- up costs. If you’re dealing with squatters, typically law enforcement will need to check on the property daily. Installing lights with motion sensors (partic- ularly around the back of the house) is a good > Continued from :: PG 29 Mind the Gap

consumer preferences, employment trends, and even the weather contin- ues to change, so must the mortgage industry’s approach to mortgage applications. • > Continued from :: PG 27 Operation Safety Also, adding Person- al Protective Equipment (PPE) to appropriate work attire keeps workers safe on the job. PPE includes, but is not limited to, safety glasses, face shields, work shoes/boots with slip and puncture-resistant soles and safety toes, well-fitting gloves, hard hats, earplugs and earmuffs, knee pads, back or knee braces, tool belts with suspenders, and headlamps. SUMMERWEATHER CONSIDERATIONS Heat exhaustion is not usually life-threatening, but it can lead to dizziness, headaches, and fatigue that may make a worker more susceptible to other inju- ries. Heat stroke can cause unconsciousness, and strains the heart and blood vessels, increasing the risk for heart failure or stroke. Make sure workers are dressed appropriately and have plenty of drinking wa- ter available. On excessively hot days, you may want to cut the work day short or focus on indoor work from 10 a.m. - 3 p.m. when the heat is most intense.

deterrent, and it helps to have a good relationship with your neighbors who can help keep an eye out for you and alert you of any unusual activity. If you delve into the world of property man- agement, you’ll also likely need to augment your pro- fessional network. If you’ve built or renovated homes in the past, you probably have a list of preferred contractors for various types of work. But you’ll need plumbers, handymen, electricians, etc. who can be available for smaller jobs on short notice. And unless you plan to be avail- able 24/7 for as long as you rent the property, you’ll need to have someone you trust to serve as a backup when you can’t tend to tenant requests. While this isn’t an exhaustive discussion of a property manager’s responsibilities, you can see that there are some significant differences from being a traditional real estate investor and some unique challenges, as well. Ultimately, being able to flip the switch from investor to landlord could be your safety net if the market takes a turn for the worst. So, start think- ing about your strategy for building your real estate portfolio sooner rather than later. That way, you’ll be prepared when that day comes. And history has taught us that, eventually, it will. • > Continued from :: PG 41 GSE Reform: Housing Finance


80 | think realty housing news report :: june / july 2019

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