All Forum Posts by: Skye Anderson

 IF you have a meter stolen and an AC unit stolen from the same property, and this is your first deal.  I would run the other way, my guess is its a C or D neighborhood (without actually knowing where you are), its probably a place for only seasoned investors.

I used to work for a utility that covered northern Indiana including Gary Indiana.  The only times I ever heard of meters being tampered with or stolen were in terrible neighborhoods, the kinds of places where firetrucks and ambulances wait for police escorts.

IMo on your first deal keep it simple and stay in a decent neighborhood.  It might not make you rich but it more than likely wont sink you.

One of the first things I do is talk to the immediate neighbors on either side, then walk the neighborhood.  I usually walk the neighborhood every time I visit, if I have time.

Currently, I'm working on a house I bought in a nearby town and have gotten to know the neighbor across the street very well.  She called a neighbor on one side of my house and he lets us use his driveway occasionally.  And she called friends who came and took away some of the junk furnishings my workers had taken from the house and put on the curb, which reduced by half the amount of stuff that went into the dumpster.  Near the end of this project, I'm going to send my guy over to her house to install a new toilet because she mentioned that it's the only thing in her house of 30 years that is currently giving her a problem.  A $100 toilet is a small price to pay for all the help she's provided over the past few weeks.  My lead guy likes her so much, he's not even charging me to install it -- not even if he has to (likely) repair the subfloor also.

A few days ago, a not-quite-middle-age working-class guy working on the house behind my project house made a loud smart-alec comment while I was nearby.  To his dismay, I approached him and struck up a conversation.  He was peeved about something minor, but it turns out he was doing yardwork for his grandmother, for whom the entire neighborhood is named.  Before long, he's showing me pictures on his phone of his garden, cooking and handyman work, and exchanging numbers with me.  Just maybe, I've located a handyman in a town I'm hoping to buy more houses in.  I could have handled it differently, angered him more, and maybe had him vandalize the house one night.  Instead, we both end up laughing and liking one another.  If I had the funding, I'd buy ten more houses there.

It's easy for an investor to go into a new low-income area and get turned off, or worse, create enemies and put a target on the project property.  It's also easy to go there and develop friendships and partnerships with the neighbors.  It's all about handling the situation the right way.

it is regionial to a certain extent.. but I agree with you.. when I first went into Detroit as a fix and flip lender back in 2002.

The contractor that my Turn key marketing guy was using was really up to speed with how to protect these homes and he said the same thing you did.. its the contractors coming back at night to steal what they put in during the day..  So for him and he had a big operation 6 to 10 projects going on at the same time..   when you walked onto one of his jobs.. first thing I noticed was the retired police officers checking ID and writing names and numbers down.. even me the Oregon lender who had no business being there right ?  :)

This is why I just cringe at the thought of people thinking they are going to save a few grand in these neighborhoods building their so called team and doing remote rehab.. its tough enough when you live there much less trying to do this from across the country.. 

The reality is thieves are thieves they are every where but there is simply no denying in the tougher rougher areas they are rampant.. and vacant houses are simply fare game.. if its not the thieves its the kids breaking in and having fun destroying your house.. 

on the South side of Chicago they use a system called DAWGS google that bad boy.. only way to keep them out.. and the other thing they do there and in Detroit is any ground level windows are replaced with glass blocks.. 

In Charleston SC even where we were building new construction 500 to 2 million dollar homes and the 500s are in transition areas going from historic rough and tumble to wealthy millennials that are smart and want to own instead of rent.. I funded one guy there 6 years ago when I found the market and one of the rehabs he was doing got hit 4 times before it was done  4  times everything stolen and this is in a 300 to 500k area.. 

When I opened up in Charleston I imported my builder from Vegas and put him in business... and first thing he does and he is extremely good at this is he knocks doors makes friends with the neighbors figures out what he can buy them for little gifts and then the neighbors leave Mr. Troys home alone we have KNOCK on wood not had any thefts..  

I got hit in Oregon for the first time last year  Copper thieves in a new home community I built.. but being the dumb @$$ they are they ripped copper from the wall and left the whole roll of wire sitting in the garage.. we don't secure new construction here at all until the Garage door goes on.. so its wide open for copper and HVAC and water heater.. 

Any way.. your post brought back some fond memories of me starting in this mid west lower end rental lending business back in 02.. I did probably 200 plus loans in Detroit before it had its epic financial melt down.. and boy was it epic.

Thieves often steal meters to bring power to vacant property or to their own residence. The reasons vary Could be any of the following;  don't want to live in the dark, power was cut off for non payment, starting a short term meth lab, house of Ill repute or whatever, use your imagination. I have had a few meters stolen from my rentals and then also found surplus meters after the tenants moved out. 

Check you contract and call your attorney to delay closing until after the inspection.

Would this location in Saint Louis be on a street named after a state? 

@Skye Anderson

As has been said, depending on your locale, everything is fair game to be stolen. I once had a Tenant in Baltimore City in the 90's steal and sell her new furnace after I filed for eviction. She told me someone broke in when she was away. She didn't even sell it to pay the rent. It's a crazy world out there.

 Personally, I would negotiate the lowest price I could and if the numbers worked, this would not deter me.

For your decision, that's all about you.  How have your living arrangements been throughout your life?  Have you always lived in B+ or better neighborhoods?  Have you ever had (and visited) friends who lived in low-income neighborhoods?  The house that you are planning to buy in St Louis, how would you feel hanging out in that neighborhood and having a barbecue with the neighbors there?

There are not right or wrong, benevolent or got'cha, or trick answers here.  But, if you don't have experience in those sorts of neighborhoods, and even moreso, you don't have life experience with the socio-economic type of people who would be your tenants, that's your answer.  Not every investor is suited to be a landlord in every possible neighborhood.

If the reality of a stolen meter surprises and rattles you, I think you are probably better suited for being a landlord in other types of neighborhoods.