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How To Prevent Squatters Taking Over Your Properties

by blogger1
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on Wednesday, 17 April 2024
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Squatting seems to be a new tsunami spreading across the country. Current economic dynamics only look like they will fuel this trend for the next few years.


They can be expensive and time consuming to get rid of once they're in. So, how can you prevent squatters taking over your properties?


Minimize Vacancies

Squatters move into vacant properties. The less time a property is vacant, the lower the risk.


Alarm Systems

If you and the authorities are alerted as soon as someone breaks in, then you can prevent them from trying to stay and assuming squatters rights.


There are security systems which real estate investors can rent by the month, and move from one property to the next as they buy and sell them.


Make It Look Active

Squatters target properties that look abandoned. Yard signs can signal a property is empty too.


However, you can stage with cheap tools, kids toys in the yard, or other items to make it look like someone is working and staying there.


Secure The Property Right Away

As soon as someone moves out, or you take on a new property, it should be secured immediately. Including the windows, and changing locks.


Communicate With The Neighbors

The neighbors are also a great alarm system. If you get along with them, they can help discourage strangers from coming around. As well as alerting you when there is suspicious activity on your property.


Build rapport with the neighbors. Often you’ll find they bring some of your best renter and buyer leads too.


Be Smart About Where You Buy

Local law enforcement and legal systems make all the difference in how common squatters are, and how long and expensive it is to get them out.


There’s a huge difference between how different states deal with squatters. Some states have been toughening up their laws and approach to preventing and getting rid of them. Some seem to favor squatters over owners.


Where you invest makes all the difference. This may also be a factor in calculating true risk adjusted returns.

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Falling Credit Scores And A Squatting Epidemic

by blogger1
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on Friday, 22 March 2024
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For the first time in years US credit scores are falling. Along with that there appears to be a tsunami of new squatting incidents across the country. Both are situations where real estate wholesalers can offer valuable help, and find more deals.


Declining Credit Scores

FICO’s latest report shows American credit scores have begun declining for the first time in a decade. Since right before the last financial crisis.


Consumers have tapped out savings, and have increasingly tapped out credit cards, which they’ve now been defaulting on at record dollar amounts. Along with auto loans. We are also seeing foreclosures surge as a result according to ATTOM Data.


When consumers max out their credit balances, their credit lines get cut, and their costs go up, like car insurance and interest rates on other debt. That’s an expensive snowball that just takes them down, and just keeps fueling their financial distress.


Squatting On The Rise

Every day it seems the news headlines feature a new squatting incident. Again, another issue that doesn’t appear to have been this wide spread for a decade.


Squatters are getting smarter, and they can be expensive to get out. It can take months. One homeowner even just went to jail for protesting in front of his own home that a squatter took over.


This is only likely to escalate as credit scores fall and foreclosures rise. More people will be left with no choice but to try and squat somewhere. Especially as homelessness is increasingly being criminalized across the US. As more homes go vacant through foreclosures and are abandoned, there will be more places for squatters to pick from.

 

Creating Solutions

Real estate wholesalers can help both homeowners and rental property owners as their credit begins to slide. Find signals of these credit and cash crunch issues, and make offers early in the default process, when there is more equity.


If they have squatters, you can hire a great lawyer, or find other creative and legal ways to convince them to leave. In the process you can create a lot of value between the time you go to contract to purchase, and then wholesale the property to another buyer. Those who begin specializing in buying squatter properties may find they strike gold in a growing niche.

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