How do you protect the investment you are making in rehabbing properties from criminals?
There are many ‘bargain’ homes to be found today in some of our less pleasant neighborhoods. Unfortunately, they may often be being sold cheap for a reason. Perhaps criminals have scared other investors and homeowners away and often the properties have already been stripped.
There can be great money to be made by rehabbing these properties and a lot of good to be done by revitalizing neighborhoods but unless you act to protect your improvements you could quickly find yourself going in the financial hole or even potentially wind up with unwanted squatters taking over your newly redecorated pad.
So what can you do?
1. Recruit Some Security
Today many investors rehabbing properties are concerned about gangs and organized groups of criminals targeting their homes. While you don’t want to get caught getting mixed up with being one of these individuals, why not recruit a couple of the biggest and baddest looking thugs on the block to protect your homes instead of having to spend more on replacing the stuff? Perhaps there are down on their luck locals who even need a place to sleep and would definitely protect your property while they were staying there?
2. Security Measures
Cages for AC units, alarm systems and checking up on homes regularly and randomly can also deter would be thieves and vandals. Just make sure not to make the home look like and even tastier target
3. Plan Better
Be sensible about what upgrades you do and when while rehabbing properties. Putting new appliances in at the beginning of a project is just asking for trouble.
4. Budget for Losses
While you can do a lot to defend against them losses are a part of the real estate investing business. Factor them in and account for them so that you don’t get caught short.
5. New Strategy
Rehabbing properties is great but if you are having a hard time with these challenges consider simply cleaning up the place and wiping the slate clean for the next buyer. This can increase value yet will minimize the possibility of risks and losses.
