As soon as we close on an Investment Property, we want to implement our Exit Strategy. The faster you get this distressed investment property back on-line the less money you are losing due to holding costs and the quicker the asset will cash flow. Every step we implement adds value to the property.

The first part of bringing the property back on-line is to Clean and Secure the property. This adds the most value to the property with minimum overhead. Below is an outline that describes the basic process of cleaning and securing a real estate investment property. By the way, most of these steps you can do it yourself.

Clean and Secure Process

Removal of debris from Interior & Exterior of House - If the investment property has been abandoned or on the market for a while, chances are there has been a buildup of debris and the property was broken into and trashed. The property becomes an eyesore and the city is just waiting to pounce on the new owner.
- Dumpster for Debris
- Order a Dumpster - Depending on the amount of debris, you may have to order a dumpster. Delivery and removal are handled by the Dumpster Company. You just pile in the debris.
  - Can be very expensive.
  - Neighbors will help themselves by using your dumpster to pile in their debris.
  - Permit Fee is built into the price. The City keeps track.
    - Suddenly, city inspectors will begin to show up to see what you are up to and do you have the proper permits.
  - Neighbors can see the dumpster on the premises. They will report you to the City.
- Finish cleaning and get rid of the dumpster as soon as possible. Less attention.
Recycle Materials - Every house contains items that you can recycle and receive money for these items. We are serious! You can start pulling cash out of the property right away.
- eBay - You can place in eBay's Classifieds an ad selling items you found inside the property. It Works!
- Metals - based on cost per pound.
  - Non-Ferrous - You know the metal that doesn't let a magnet stick to it.
    - Copper, Brass, Aluminum, Lead, Tin, Nickel, Gold, Silver
    - A/C Coils, Radiators, Batteries, Pots, Stainless Steel, Motors, Transmissions, Bathroom Fixtures, Electrical Wire.
  - Scrap - Less money. Pull wiring and motors off of appliances and recycle them separately.
    - Iron, Steel, Sheet Metal, Rebar
    - Old Appliances, Water Heaters, Non-Copper Pipes
    - Dryer & Stove Electrical Wiring
      - Three prong cords - Found on ranges and dryers.
Make sure all access points are secure
- Doors with locks
  - Locksmith - You made need one if you are not handy with installation
- Windows are covered with wood, rejas (metal bars) or original window.
  - If glass is cracked or missing must board whole window.
  - Board on window must be painted & uniform with other boarded windows.
  - If there are iron bars on the bedroom windows, they must have breakaways. Minimum size 20 x 41 inches.
  - If all windows are boarded, air holes must be drilled into plywood to provide ventilation.
  - Independent Securing Service - If you don't want to board up your property by yourself.
- Secure your Outside Water Access - People will steal your water, especially if your neighbors have well water and you are connected to the City Water System.
  - Place lock on outside water faucets
Landscaping
- Trim Grass, Bushes and Trees
- Landscape Equipment for
  Cleaning Property's Exterior

By cleaning and securing the property you are adding value to your property right away, preventing break-ins, getting the city off your back and who knows, sell it as is to another investor for a nice profit!

Written by Bob Burns

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Real Estate Investing Tip: Check to see if you have any liens or violations caused by your tenant before giving back their security deposit. We got nailed for $500 for a pit bull violation.

Written by +Bob Burns.

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Clean and Secure!

+Real Estate Investor
about.me/RobertKBurns
Telephone #: 305-586-5280
email: sec8@planocho.com

Tenant Electrical Tampering

When I started out as a Landlord, I was very naive about how tenants could damage your investment property and get away with it.

One of the hidden problems is your electrical outlets. They can be tampered with or damaged very easily without the Landlord's knowledge.

I had a tenant set up a tent on the back patio of one of my investment properties to repair engines. I noticed he jury rigged lighting from one of the outlets in the back bedroom. I wasn't happy about it but didn't say anything.

After the family moved out I went over the property to detect the repairs needed for the next occupants. I noticed that outlet used for outside electricity wasn't working properly but I didn't know why. I remember my Dad, who an electrician, using a tool to check the current status of each outlet.

Outlet Tester

This instrument not only checks but reports back through a series light combinations the existing status.

Advantages

This little tool provides the owner or Landlord the following advantages:

Check current state of electrical outlets before tenant moves out. Use security deposit to implement repairs.
Before purchasing an investment property, check existing status of the electrical network inside the potential investment property. Have Seller do repairs instead of the Buyer.
The tool is easy to use.
Very inexpensive.
No need for an Electrician. DIY (Do-It-Yourself).

Outlet Status

Below is a table that displays the Outlet Status when the three prong is plugged into a standard 110 volt outlet:

OUTLET TESTER STATUS CHART
STATUS	INDICATOR
OPEN GROUND	OFF ON OFF
OPEN NEUTRAL	OFF OFF ON
OPEN HOT	OFF OFF OFF
HOT/GROUND REVERSED	ON OFF ON
HOT/NEUTRAL REVERSED	ON ON OFF
CORRECT	OFF ON ON
What is the Outlet Status?