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.
- Landscaping
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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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