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[G531]Green White And Red Flags
by Pam Rumley, Pam
Many times, you can tell if a home has been well taken care of as soon as you pull up in the driveway. Here is a quick overview of a few things you might want to keep in mind when viewing a home.

Exterior:

* Take a look at the roof. Does it have any discoloration? This can mean poor attic ventilation or mold. What about the shingles? Are they laying flat or are they curled?

* How about the landscaping? Has it been well maintained? This might indicate whether the current owner has pride in ownership.

* Do you see splash blocks under the downspouts? If not, water has likely been running under the house or into the crawl space every time it rains. Water is one of the worst enemies a house can have.

* Check the gutters. Do you see any rust spots? This could indicate water leaks and/or damage.

* Do you notice any cracks or lifting in the concrete driveway? Look for the cause. It might be tree roots coming up or a possible water line leak. Either one should have a closer look.

* Take a look at the brick, especially on the corners. Do you see cracks in the brick or mortar joints? Think foundation problems!

* What about any discoloration around the foundation? Water problems again.

* Check for any wood that is making contact with dirt. This is a termite picnic waiting to happen (if it hasn't already).

* Are you aware that a termite inspection may not cover landscape timbers? They can be full of termites, not not be shown on the report.

* Do you see any firewood up against the house? Again, termites! Dirt, wood and water are termite favorites.

Interior:

* Do you smell a musty odor when you walk into the house? This could indicate moisture problems or mold.

* Don't let mini blinds stand in your way. Check out the windows. Do you see any moisture in the glass. This indicates a broken seal and that window will have to be replaced.

* What about cracks in the walls, especially around door or window frames? This could indicate foundation or settling problems.

* Always look for any discoloration on walls, ceilings and vinyl floors. Again, water problems!

* Check around sinks, toilets and dishwashers. That soft mushy feeling under your feet means putting in a new floor.

* Be sure to open and close the garage door several times. And also check for a detector that would protect a child from danger.

* Take a look at the circuit breaker box. You don't have to be an electrician to tell whether the box looks neat and organized...or if there are wires everywhere.

* If the home has a basement, look carefully for any signs of water stains on the concrete block. This water problem is very hard to correct.

* Be aware of possible attempts to cover problems with new paint, etc. This doesn't happen often, but if in doubt, check it out further.

These are just a few red flags to watch out for. Never be afraid to ask questions. And always be prepared to walk away if you don't get the right answers! When you feel comfortable enough to make an offer, don't forget to include a professional home inspection in the contract.

Here are four red flags that may reveal you need to seriously change or close down your lawn maintenance business.

1. Your Debt Is Rising

Here's the first red flag to watch for. It's called your debt-to-asset ratio. Lawn business owners will often times borrow money to purchase assets like lawn equipment. There's nothing wrong with that. But if the debt is rising and is slowly increasing while your assets are barely moving, you could be on the verge of becoming over-leveraged.

What percentage should one look for? Typically the sign of trouble is a debt-to-asset ratio of about 50% or more. What you do or don't do varies from lawn care business to lawn care business. But no matter what box we put this into, a rising debt-to-asset ratio is not a good thing.

As most know, leverage is a powerful weapon that is more like a two-edged sword. We all want to be on the right side of it.

The bottomline - the greater your leverage or debt ratios, the more debt you have to take care off which in turn drains your lawn maintenance business profitability, and the less equity you have in your business.

2. There's a Hole In Your Financial Pocket

You're losing money in your lawn maintenance business and the losses are growing. Depending on where you live there may be some areas in the tax code, such as the ability to depreciate assets that may actually be appreciating in value, make it possible for lawn care businesses to reduce their profit or show a loss even though the business is actually doing quite well.

Showing a tax loss is typically not a bad sign but if your lawn maintenance business is losing money outside of this and the tax code is only bringing that loss out in the open, there's a good chance you're staring at another red flag.

So if your losses are growing and don't seem to be disappearing, there will come a point in time where you have to look at your lawn care business and decide whether it's realistic to assume you're going to be able to come out of your losses. Can you really get over this "hump"?

3. You're Out Of Money

You can't seem to get any more money for your lawn care business. Everybody knows about businesses that were moving along nicely and then a loan application of some sort was turned down. Not good.

Yes, sometimes a reluctant banker may actually be helpful in letting you know that your lawn maintenance business is not as properly planned or viable as you think it is. Sometimes lenders keep borrowers out of trouble or at least, from getting themselves into deeper financial trouble. Like a splash of cold water on your face, a loan rejection can be a fast reality check for anyone who thinks his or her current problems aren't a big deal.

4. You're Not Smiling

You're not smiling. If you aren't having fun then you better look out. I believe a key to success is that you enjoy what they're doing. If you get up in the morning and you can't stand the thought of running your lawn maintenance business, then the truth is it's time to take a hard look at shutting down.

Article Source : California Real Estate Investments

About Author
Both Pam Rumley & Daniel Pepper are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Pam Rumley has sinced written about articles on various topics from Real Estate, Web Development and Food And Drink. Pam Rumley is a veteran real estate broker in the Nashville, TN area. She is a true Exclusive Buyer's Agent. There is never a conflict of interest regarding your real estate transaction. You can be assured of receiving 100% of her attention and. Pam Rumley's top article generates over 1600 views. to your Favourites.

Daniel Pepper has sinced written about articles on various topics from Real Estate, Lawn Care. . Daniel Pepper's top article generates over 480 views. to your Favourites.
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