One big problem with purchasing distressed property
One big problem with purchasing distressed property
So, you have just closed the deal at the title company for that deal-of-the century residential property. Now you have the keys in your hand, its time to get in there and see what needs to be done so you can rent it or flip it. You proudly drive over to the property, get out of your car walk up and get ready to open the front door. But wait! Someone is home! The owner/tenant is still there! How can that be?
Well, friend, it CAN be. Here are two unlucky scenarios:
1) If there was a renter in the property when you closed, a federal law passed in 2009 gives the renter certain rights which may mean he can stay for up to the end of the lease (or 90 days if month-to-month). Thats bad news if you were hoping to flip the house, because unless you convince him to leave with a cash offering (called cash for keys), you can't even begin to get the place fixed up for several months. Thats especially bad when local prices on homes are dropping. But it also ties up your investment money, and if you are paying interest on the money (lets say to a hard money lender) thats going to get even more expensive.
2) If the previous owner was in the property when you closed, its a little more straightforward - he HAS to leave, the home does not belong to him anymore. But you have a different problem. He wants to take his "stuff" with him. Things that may not necessarilly belong to him, like applicances, lighting, even plumbing!
In either scenario, once you finally get control of the property, your next problem is: how many other keys to the house are out there? Is the ex-occupant going to try and come back to the house? Even if you change the lock, what if they happen to be able to pick locks?
In our case, we evicted a hostile tenant the evening before we had to leave on vacation. Waiting around for a locksmith was not a good option. I wanted to enjoy my vacation knowing the property was secure until I returned.
Lock-Kill to the rescue. Lock-Kill is a device every property manager should have in thier bag of tricks. Its looks like an ordinary key, but the patented design allows it to slip into the lock, but never come out. Ever. I inserted Lock-Kill and in seconds I knew I could leave with peace of mind and deal with the property when I got back from vacation. When I returned, I drilled out the old lock, put a new one on and proceeded to clean it up for the next tenant. Not every situation requires Lock-Kill, but now I always have a few handy just in case. Get more information about Lock-Kill at http://www.lockkill.com.
http://www.articlesbase.com/real-estate-articles/one-big-problem-with-purchasing-distressed-property-3550722.html
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