How to Protect Your Vacant Property from Copper Theft and other Vandalism

Vandalism and copper theft have become huge problems for owners of vacant properties. Copper thieves and vandals prey on vacant houses because they are easy targets and cause huge amounts of damage to the average property for a relatively small payoff.

Why Do People Steal Copper?

Thieves love it because the value of copper has risen so much.  It is estimated to bring an average of about $3.30 per pound and is a $1 billion dollar problem according to the US Department of Energy.
The other reason copper theft is such a problem is that it is a component in so many building materials. Copper tubing can be found in the pipes in many homes. It is also used in heating and air conditioning units, wiring and electrical components, and a whole host of other things.
More often than not, the damage done by these thieves obtaining the copper far exceeds the value of the copper itself. Vandals may do thousands of dollars in damage to a property for no more than $25 or $30.00 worth of copper. They will tear up walls, ceilings, cabinets and anything else that gets in the way of ripping out the copper.
The biggest targets for these thefts are construction sites, vacant buildings, and commercial heating and air conditioning units.  That said, there are some steps that real estate investors can take to prevent your property from becoming the latest victim of these unscrupulous people.

Make Residential Property Look Lived In

If possible, take some steps to make the property look like it is occupied. Here are a few steps you can take:

• Put up inexpensive mini blinds and keep them closed.
• Have several lights on a timer that will come on at different times in the evening.
• Pick up any junk mail left at the house several times a week.
• Be sure that no trash accumulates on the property.
• Don’t leave trash cans sitting at the street for extended periods of time.
• Make sure the lawn is mowed on a regular basis.
• Ask a neighbor to park in the driveway several times a week.

If your property is in the process of being rehabbed here are a few tips:

• Get rid of the dumpster as quickly as possible.
• Make sure building materials and trash aren’t left where people can see them.
• Don’t leave tools and other valuables where they can be seen through doors and windows.
• Enlist the help of the neighbors. Give them your business card and ask them to keep an eye out for anything suspicious. Don’t forget to reward these folks for their help when the job is finished with a gift certificate for dinner, a free car wash or something similar.

In both of the situations above, you can also install one of those portable alarm systems in the property. These are great because they can be moved from property to property.

Commercial Property Owners

These types of properties are especially popular because thieves can generally count on the business being closed at specific times.  There are some steps that you can take but all in all, these thieves are hard to deter when it comes to commercial property.

• Some property owners have been known to paint visible copper components black to appear like regular plastic tubing.
• When a tenant moves out, immediately check to be sure the property is secure.
• You can fence areas that contain commercial air conditioning units by using tall chain link fencing with razor wire at the top. In certain instances you may have to use privacy fencing. Putting these units on the roof top won’t necessarily stop a thief from taking on this challenge but may help in some instances.
• There are portable alarm systems that can be used on air conditioning units that seem to work pretty well.

Out Smarting the Copper Thieves

It’s pretty hard to outsmart these people, but if you take precautions you at least have a fighting chance of staying one step ahead of them.
One last thing to consider, is whether you want to put a “for rent sign” out in risky areas. With the internet, you can still get the word out that the property is available without alerting the vandals and copper thieves.

5 Ways To Finance A Real Estate Investment

Now is a great time to be looking for deals in real estate. The biggest profits can be made by buying in a down market. That being said, if you don’t have substantial liquid assets available or a great credit rating as a safety net, buying real estate with the current credit market could prove to be more of a pitfall for you than a springboard to prosperity. Assuming that you do have a stellar credit rating and feel financially secure, these forthcoming financing methods may be a great way for you to grow your net worth. Whether you're looking to upgrade your current home, buy your first home or start buying rental properties, you're going to need to be savvy when it comes to financing. Here are five ways to finance a real estate investment.

Traditional

The traditional route taken through banks, credit unions and other home mortgage companies is a great way right now to finance a real estate investment. Rates are currently pretty good but expect to be asked for full documentation of income and debts to be qualified. For those that qualify, most lending scenarios require at least a 3.5% down payment for an owner occupied property and about 20%-30% for an investment property. If you are able to get approval, now is the time to lock in a great rate.

This way to finance a real estate investment really is the most traditional, safe and well-known method. So, I'm going to take you through a number of ways to finance a real estate investment you may not have heard of before.

Owner Financing / Seller Financing / Seller carry back

There are a few different names, but the same principals apply. Whenever you hear someone talking about buying "on terms," they are speaking of creative financing. Creative financing refers to any method of financing besides the traditional method. Knowing these methods is essential to savvy investing because they allow you to buy properties using the much-talked-about OPM (Other People’s Money). Investors often try to use as little of their own money as possible so it will stretch further. The first creative-financing method you’ll need to be aware of is a “Owner Financing.”  In this method, the seller agrees to carry the note for your purchase. This will happen when you find a seller that owns his/her property free and clear. They don’t want the property anymore, but they don’t mind receiving a monthly payment on it. Most of the time, however, the seller will place a time limit for when the note must be paid in full -- typically, between one and five years. This is a great way to finance a real estate investment as long as you realize you’ll need to refinance later. Remember: It's generally easier to qualify for a refinance loan than a purchase loan.

Subject-to

This subject-to method is a great way to finance a real estate investment quickly, though it will be a short-term solution. The name "subject-to" comes from the phrase "subject to existing financing." This means that you buy the property on the condition that the existing financing stay in place. The title is transferred, but the loan will stay in the seller's name, and the buyer will make the payments. The reason why this is a short-term fix is because seller's aren't going to be very comfortable leaving the loan in their name for an extended period of time. Savvy buyers will use this method when they don't want to come up with a down payment, knowing they can refinance in six months and get the loan put in their name. This method is commonly used when buying pre-foreclosure properties. The buyer gets into the property with zero down, and the seller is willing because they have to get rid of the property immediately. If you use this method to finance a real estate investment, just make sure you uphold your end and make the payments on time.

Seller second

This way to finance a real estate investment is extremely useful and used often. The "seller second" means that the seller provides a second mortgage. Typically, the second will be just large enough to cover most, or all, of a required down payment. For instance, if you know you're pre-qualified for a loan that will require a 20% down payment, you should make an offer contingent on the seller carrying a note for 20%. This way, you will get into the property without using any of your money and the seller gets the bulk of his equity and makes the deal. One caveat: Make sure the loan you are qualified for will allow this type of transaction. Some will, and some won't.

Lease option

Finally, if you can’t find a way to finance a real estate investment, you can do a lease option. The lease option allows you to get into the house for little to no money down, and it gives you the right to buy the property down the road -- typically, in two or three years. This time period will give you ample opportunity to procure financing. Also, often you can arrange it so a portion of the monthly lease payment will go toward the balance of the home.

property purchase planning

There are actually many more ways to finance a real estate investment creatively, but you are now acquainted with some of the most popular. The bottom line is: If you're determined to buy a property, you will find a way.