Q: Today, while inspecting a pre-foreclosure investment property I noticed mold growing along the walls and floor in the basement and a strong, musty odor. The price of the property was reduced from $240,000 to $149,000, because of this issue. What does it take to cure a mold problem? Should I steer clear? (Pat K., Washington D.C.)

A: To ensure safe, profitable investments, people who plan to invest in real estate should know the facts about the latest environmental scare: Toxic Mold. The truth is the only thing new about mold is that some people are willing to exploit other people’s fear and ignorance of it to make a dollar.

People have known about the beneficial and harmful health effects of mold since ancient times. Molds are ubiquitous. Mold spores can travel on people, animals, clothing, or virtually any other surface; and when they come to rest on places where there is constant moisture, they will .

Mold exposure does not always present health problems; in fact, the term “toxic mold” is not accurate. Molds themselves are not toxic or poisonous, but certain molds under certain conditions can produce toxic liquid or gaseous compounds called “mycotoxins” which can cause human illness though ingestion or skin contact.

When exposed, people who are sensitive to molds may experience allergic symptoms such as sinus congestion, watery eyes, runny nose, coughing, wheezing, or skin irritation. People exposed to large amounts of molds, may have more severe reactions such as fever and shortness of breath. Prolonged exposure can be particularly harmful, leading to sinus and respiratory infection, chronic pulmonary inflammation and hemorrhaging, digestive tract infection, skin infection, neurological problems, and death. People with immune deficiencies or chronic lung diseases like COPD are at increased risk for infection.

Mold-related illnesses can be difficult for healthcare practitioners to diagnose because people may be unaware of their exposure to mold contamination. Ignorance of mold can also be dangerous to one’s wealth. To “scare up” business, some mold remediators recount the tale of the hidden mold infestation in the Beverly Hills home of TV star Ed McMahon which ultimately sickened him and his wife and killed their dog. The tale of terror is often followed by an unreasonably expensive proposal. But like most mold infestations, the McMahon’s could have been prevented with a simple, common-sense approach.

Mold infestations can usually be seen or smelled. When mold infestation is suspected, a moisture meter can be used to test moisture behind walls without tearing them open. In the McMahon’s case, workers had covered mold and moisture with paint after a water pipe burst. The mold was discovered by the McMahons about a month later after it had spread through the heating and air-conditioning ducts to their bedroom, invading their closets and contaminating their clothes.

Mold growth in buildings is symptomatic of a moisture problem, so the first thing to do is to properly address the conditions causing mold (water leaks, condensation, flooding.) Next, mold should be cleaned from hard surfaces with a commercial cleaner or a bleach solution of one cup to one gallon of water. Ensure adequate ventilation, wear protective gloves and eye wear, and never mix bleach with other cleaners. Finally, toss or recycle absorbent materials. They are particularly conducive for mold growth and some cellulose materials even provide mold with nutrients.

If the area to be cleaned is more than ten square feet, exposure may require a respirator or protective suit. Consider calling a professional or consult the Environmental Protection Agency’s Mold Remediation in Schools and Commercial Buildings guide (it applies to other building types.) For a copy, call 800.438.4318 or visiting www.epa.gov/mold/mold_remediation.html.

As part of routine preventative maintenance, inspect for evidence of water damage and mold growth. Provide adequate ventilation in moisture-prone areas such as kitchens and bathrooms; during humid months an air conditioner or dehumidifier can be used to maintain humidity between 40% and 60%. Consider mixing in a mold inhibitor when painting moisture-prone areas, and clean those areas with mold-killing products.

The presence of mold in a building is a problem that can be corrected with money. As such, real estate buyers should view mold as nothing more than a line-item on their list of repairs. Base your offer on cash flow or equity, and make an offer that puts a smile on your face.