Securing your investment

[Ed Caldwell]

Most new investors are so overwhelmed when they start flipping with getting the deal, funding the deal, finding good contractors, getting the work done timely, and ultimately selling it for a profit.  An area over looked is securing the investment made in the property.  A vacant property is a thief's best friend and neighbors are now used to many different strangers coming and going from the rehab house, so they don't pay attention.  The prime easy target are the brand new appliances you just installed.  I learned this lesson the hard way on one of my earlier flips!  You are at risk from contractor subs you don't know to professionals that pretend to be homebuyers and use Realtors to show them houses. It is VERY easy for them to unlock a window when roaming the house as many Realtors just leave them alone to get a feel for the home.  After losing thousands of dollars on one house after the appliances disappeared, the solution I found was using  mobile alarm systems that I can move from flip to flip. I am not a paid rep, but I found Simplisafe online which has been great.  No contracts and all mobile.  I opted to pay the $25 per month so I could control the system online, which is well worth it as I have found Realtors that show my houses seem to always forget to reset the alarm when they leave.  When the house is a hour away, this is a blessing.  Worth the investment as it has saved me from losing appliances on two other flips already and buyers always seem to want to keep it, so it is a selling feature as well.

Also, ALWAYS remove your contractor lockbox from the house (or change code) as soon as the rehab is complete.  You should also check the lockbox periodically during the rehab as I have on numerous occasions found the lockbox NOT LOCKED with the key in it.

I hope this helps out others in our BP community to save costly mistakes I learned the hardway.