Re: Personal safety and breaking into repos - Posted by Karl (Oh)
Posted by Karl (Oh) on February 17, 2006 at 23:32:00:
Jeff,
First, to answer your personal safety question. When I go into bank repo homes, I always have either my bid maglite or a crowbar in my hand. I’m not interested in hitting anyone with either, but if someone is in the home, I just want to have something to point at them as I quickly back out the door. I usually yell “HELLO!” a couple times, so I don’t surprise anyone that might be in the home. I walk through the home quickly and check closets and bathrooms to see if anyone is there. Then I put down my “weapon”, and start my review of the home. I wouldn’t want to carry a firearm, because I would probably just end up accidently shooting you when you came to look at the same home 5 minutes behind me.
As we all know, you can’t always tell the difference between a home that’s being lived in and a home that’s been turned upside down after a repo. A home knee deep in trash doesn’t mean that a family isn’t living happily in that home. I’ve walked into homes that were “obviously” vacated, only to find someone living there. One time a guy was sleeping on a couch, and I foolishly tried to wake him up to ask him who he was. I couldn’t wake him, so I took my pictures and left. Another time, I found a woman hiding in a closet. She thought I was the bank coming to kick her out of “her home” again.
When I show up at a home, I pull up in a pickup truck, get out a clipboard, have a camera in hand, a couple screwdrives and a cordless drill, and a measuring wheel. I pull open the skirting and measure the frame, check for axles and the tongue. I stand out in the street and take pictures. I basically just act like I own the home. I purposely make a little production out of it, I want to look like the bank field rep to any park employees or nosey neighbors. If a neighbor sees me, they usually ask “are you with the bank?”. If the cops were to show up, (and it hasn’t happened ever in six years), I’m confident I could explain my presence in the home. And I know I could get the right person on the phone, if need be, to vouch for me.
I always stop at the home to look it over first, before talking to the PM. Many times I’ve bought homes that a park was also bidding on, or hoping to get for free for back lot rent, or I was hoping to flip the home to, etc, so I don’t want to give up any competitive advantage by alerting the PM that I’m looking at the home until I’m ready. If I take a quick look at a home and its a total dog, I don’t want to waste an hour schmoozing with a PM for no reason. So I never stop at the park office first.
Here’s my opinion on breaking into repos. Bottom line, these banks just want to sell their homes. They’re sending me a list of their repos and asking me to put in bids. They know that I can’t bid on a home that I haven’t looked at. They’ve never asked me how I’m getting in any of their homes. I have several master keys that sometimes work, but usually I’m popping the lock with a long thin screwdriver, or climbing in a window. Based on the condition of most of the doors jambs, so is everyone else. The banks understand that a lot of buyers are going in and out of these homes when no key is readily available. They don’t care about that at all, they just want to sell the home.
Perhaps this isn’t the correct legal way to look at bank repos. But its the only way I know to look at a lot of repos in a short amount of time. And in Ohio, Kentucky, and Indiana, this is the generally excepted method used by most of the investors I know.
By the way, I just bought that home that you originally referred to. The squatter is gone, utilities are off, and we just winterized the home. Its going to be 10 degrees tomorrow night. Now I just have to try to do something about that $4k lot rent bill so we can move it out!
Karl Kleiner