[Durham INC] instead of plywood on windows...
Ken Gasch
Ken at KenGasch.com
Sat Mar 5 05:58:48 EST 2011
I believe that you ensure that homes are sold to people who intend to move
them toward owner-occupancy by helping them to realize that their best
potential return on investment is to fix it up properly and sell it to an
owner occupant. The income I make from helping a renovator find and buy a
falling down home is minimal. The income I make from selling the finished
project is what supports my "habit". My "habit" is renovating homes as well.
Here is the project I am most recently involved with:
http://pettyhome.blogspot.com/ This home, built near the turn of the
century, was at some point split into a duplex. It has been boarded up for
as long as I can remember. It is under contract as of yesterday for $177K.
It is under contract to be sold as owner occupied. Given desired
capitalization rates for landlord-investors, a single family home at that
price point would never entice a investor.
Additionally, a few years ago, my beautiful and very intelligent wife helped
me to write the following "thesis" that is also available on my web site:
*Maximizing ROI in Disadvantaged Areas of Durham*
By Ken Gasch
Organizations or individuals that have invested in properties in
transitional neighborhoods are aware of the element of risk associated with
these investments and have likely factored that risk into their return on
investment (ROI) model. However, these investors may not be aware that
opportunities exist to further enhance that ROI and recoup an outsize
return. Similarly, organizations or individuals that hold properties that
have declined in value may not be aware that they can affect positive change
in the neighborhood surrounding their properties and thereby improve their
investment position.
The most salient element contributing to investment risk in transitional
neighborhoods is crime. It is no secret that businesses are driven from
crime-ridden neighborhoods, taking jobs and opportunities with them.
Potential investors, would-be employers and prospective employees are scared
away. Existing owners are deterred from making improvements on their
property, and as property values decline, owners divest their holdings.
Investors who are working to maximize ROI in these areas find that criminal
activity is seemingly uncontrollable. Investors, residents and landlords
blame police for not responding to their concerns. Police blame landlords
who they feel may harbor criminals just to “make a buck.” The community lays
blame on the police, landlords, and our elected officials. This “blame game”
gets in the way of working toward a solution. Everyone involved, with the
exception of the criminal enterprises, want the exact same outcome – they
want the narcotics trade, property crimes, violent crimes, and prostitution
to end.
Most crime is generated by a small number of troubled properties that serve
as “magnets” for criminals and their illegal activity in a neighborhood.
Drug addicts who frequent these locations often steal, rob and take part in
prostitution to finance their habit. Violent crime occurs when drug dealers
engage in territorial disputes.
In order to fully maximize ROI, investors must be able to erase these crime
magnets. Many methods exist to remove the criminal element. Most techniques
are costly and time intensive. However, there are methods that are rapid,
inexpensive and effective. When these methods complement what is already
being done, dramatic and quick results will ensue.
Some of the techniques that have proven successful in Durham include:
- Identifying the magnet properties by surveying residents and by
obtaining police reports
- Reaching out to landlords of properties where police drug raids have
resulted in arrests to make sure the landlords understand how to use civil
courts to evict the tenants because of criminal activity
- Helping landlords plug the “hole” left by a vacating tenant with a
stable, contributing tenant to ensure that another criminal enterprise does
not move in
- Bringing in community-minded investors to purchase and then rehab
problem properties to be resold as owner occupied dwellings or be maintained
as stable rental properties.
- Working to clean up the most blighted properties in the target area by
- Helping the property owner understand the real value in keeping
property up
- Involving city/county code enforcement officials
- Finding community-minded investors for problem properties
- Building relationships with existing neighborhood leaders to obtain
their valuable perspective on the work that needs to be done and, when
invited to do so, assisting neighborhood leaders with efforts to reduce
crime
- Ensuring that zoning violations are addressed by city/county planning,
e.g., automotive repair shops that are storing junked vehicles on the
premises
- Working with area business owners to
- Curb the sale of items that contribute to neighborhood instability,
e.g., items that can be fashioned into drug paraphernalia or alcoholic
beverages preferred by our city’s vagrants
- Employ North Carolina trespassing laws to target individuals who
engage in the sale of narcotics or prostitution
- Transforming the “magnet” properties so that they will contribute to
the health of the community and serve as a symbol to the neighborhood of the
power of positive change
-
When carefully and systematically implemented and combined with other
strategies unique to the location of the investor’s property, the above
methods will improve an area rapidly. Coupling these efforts with media
publicity results is a steep escalation of the desirability of the area,
thereby increasing the value of the property and, subsequently, the
investor’s ROI
Ken Gasch
REALTOR®/Broker
Seagroves Realty
www.KenGasch.com
C: 919.475.8866
F: 866.229.4267
On Fri, Mar 4, 2011 at 11:08 PM, Melissa Rooney <mmr121570 at yahoo.com> wrote:
> LOVE Bill's idea of providing bonuses to realtors who sell homes in areas
> needing renovation/revitalization. How do we ensure the homes are sold to
> people who intend to upkeep them and to keep them occupied?
>
> Melissa
>
> ------------------------------
> * From: * Ken Gasch <Ken at KenGasch.com>;
> * To: * Barry Ragin <bragin at nc.rr.com>;
> * Cc: * INC INC <inc-list at durhaminc.org>;
> * Subject: * Re: [Durham INC] instead of plywood on windows...
> * Sent: * Sat, Mar 5, 2011 1:37:48 AM
>
> Pointing fingers at and disrespecting the folks who leave houses empty
> will not get results. Been there, done that. I guarantee that those folks do
> not want to have the houses empty any more than you or I do. When you
> approach a person looking for a mutually beneficial solution, in friendship,
> mountains are moved.
>
> Ken Gasch
> REALTOR®/Broker
> Seagroves Realty
> www.KenGasch.com
> C: 919.475.8866
> F: 866.229.4267
>
>
>
> On Fri, Mar 4, 2011 at 6:12 PM, Barry Ragin <bragin at nc.rr.com> wrote:
>
>> Capital idea, Bill. Perhaps we could raise that money by imposing some
>> sort of fee on people who buy houses and then leave them them vacant.
>>
>> 1806 through 1810 Avondale, for starters.
>>
>> Barry Ragin
>>
>> On 3/4/11 3:04 PM, TheOcean1 at aol.com wrote:
>>
>>> 'ppreciate the shout out, Matt.
>>> I suppose you know that one of the doors that sported that sneaker print
>>> was yours, and that was less than 3 years ago! Just look at your block
>>> today.... wow, you and your neighbors should be very proud.
>>> Can you imagine what Cleveland Holloway would be like now if Ken & I
>>> weren't almost the only Realtors interested in your neighborhood in those
>>> days?
>>>
>>> We didn't need a financial incentive, but I think other Realtors would
>>> react to more money.
>>> If a fund could be established that would add a $1,000 bonus to any
>>> Realtor who sells a boarded up gem, perhaps a bunch of other Realtors would
>>> be carting their clients around Cleveland Holloway.
>>> Those clients might become your new neighbors.
>>> If all it took to fill those 15 nearby vacant houses was a pool of
>>> $15,000 total, it would seem like a bargain in the long run. Especially when
>>> the County sees the up tick in property taxes collected.
>>> Just thinking out loud,
>>> *Bill Anderson*
>>> REALTOR
>>>
>>>
>>>
>>> 919 282-8209 Cell
>>>
>>> www.SeagrovesRealty.com
>>>
>>> In a message dated 3/4/2011 2:34:28 P.M. Eastern Standard Time,
>>> matt.dudek at gmail.com writes:
>>>
>>> I agree that boards aren't ideal, and I think Art is great as a
>>> temporary fix to bring focus on a neighborhood in need of help. In
>>> Detroit though, as far as I understand, those art installations
>>> were never meant to be permanent. The intention was to get news
>>> crews to show the need for investment in those neighborhoods. Now
>>> it's become a part of "ruins porn."
>>>
>>> I live in Cleveland-Holloway and even though there has been
>>> significant reinvestment, and a number of vacant houses renovated,
>>> there are still 15 vacant/abandoned houses within a block and a
>>> half of my house. I don't want permanent art installations that
>>> outsiders come to gawk at. I want /new neighbors,/ permanent,
>>> real-life new neighbors invested in the health of the area.
>>>
>>> I think the city's installation on Holloway St. is great, and I
>>> think the temporary New Neighbors exhibit is a fantastic idea. I
>>> hope it brings people to East Durham and shows what a vibrant,
>>> functioning community it is. I know the intent of the program was
>>> to get people to buy houses in East Durham, and I hope that's what
>>> it accomplishes.
>>>
>>> (And I should mention that both Ken Gasch and Bill Anderson have
>>> been instrumental in bringing new owner occupiers to
>>> Cleveland-Holloway. I hope more real estate agents start showing
>>> more homes in our neighborhood and other East Durham Neighborhoods
>>> to people looking to buy a home for themselves, and not just
>>> investment properties.)
>>>
>>> Just my two cents.
>>>
>>> Matt Dudek
>>> *Cleveland-Holloway*
>>>
>>> On Fri, Mar 4, 2011 at 1:59 PM, <TheOcean1 at aol.com
>>> <mailto:TheOcean1 at aol.com>> wrote:
>>>
>>> I love Melissa's idea (about the painting contest, not young
>>> kids using them as meeting locations), and greatly prefer the
>>> look of that house on Holloway with these windows/painted
>>> plywood to secure it.
>>> But I'm a little concerned that owners of boarded up houses
>>> will view this as a more permanent solution than the old style
>>> of boarding up the house.
>>> They won't be productive properties again until they are
>>> occupied, and as a Realtor, it's hard to show a boarded up
>>> house, painted boards or otherwise. I see boarded up houses as
>>> property that needs to change hands for everyone's sake, the
>>> neighborhood, the former owner and the future owner, even the
>>> house itself.
>>> Since I'm on the committee, I wanted to make proper disclosure
>>> that I'm a Realtor with a history of buying/selling vacant
>>> properties. There's no money in it, which is part of the
>>> problem. I became a Realtor to assist a neighborhood. One of
>>> the primo houses, with a piece of Ellerbee Creek running thru
>>> it's backyard, we bought for less than $20k. Do the math, my
>>> take was less than $300. and most wouldn't have done the
>>> paperwork for that. But it helped transfer ownership so the
>>> renovations could begin.
>>> My reason for bringing up that house is that it was easy to
>>> show to perspective buyers/renovators. The front door had been
>>> kicked in, and the same sneaker print was also on the front
>>> door of the house next door.
>>> Both of these houses are now beautifully renovated and owner
>>> occupied.
>>> Not sure that would be the case if they had been boarded up,
>>> with decorated boards or plain ones.
>>> I think the question might be: "Which helps a house change
>>> hands faster, decorative boards, or a Realtor who is community
>>> minded enough to do the work for peanuts?"
>>> *Bill Anderson*
>>> In a message dated 3/4/2011 10:15:07 A.M. Eastern Standard
>>> Time, fletch.groups at gmail.com <mailto:fletch.groups at gmail.com>
>>> writes:
>>>
>>> Ken, not every boarded up house has a neighbor that can
>>> keep an eye on it. There are entire blocks of streets that
>>> are made up entirely of boarded up houses. Turning these
>>> buildings into art may increase traffic and visibility
>>> around them, helping decrease squatters and general crime
>>> in the neighborhoods they are in. Detroit has had some
>>> success with this
>>> <http://en.wikipedia.org/wiki/Heidelberg_Project>.
>>>
>>> On Thu, Mar 3, 2011 at 10:34 PM, Ken Gasch
>>> <Ken at kengasch.com <mailto:Ken at kengasch.com>> wrote:
>>>
>>> Boarded up windows scream: "Hello squatter, please
>>> consider prying a board loose on my back side and
>>> coming on in. As you can see by my boarded up windows,
>>> I am empty and nobody will bother you for weeks at a
>>> time." Artwork will do the same thing.
>>>
>>> Boarding up homes is a bad policy.
>>>
>>> Homes should be lived in.
>>>
>>> I have had to keep squatters out of houses scores of
>>> times.
>>>
>>> For starters, go in a few times and throw all their
>>> belongings out. That usually keeps them from coming back.
>>>
>>> Empower the neighbors to watch the house for you. I
>>> have one project where a neighbor ran off some
>>> would-be looters/squatters with a 12-gage, double
>>> barrel shotgun.
>>>
>>> Get temporary power on and play music and keep a light
>>> on or two. Put lights on timers.
>>>
>>> Sign a trespass agreement with the police and post "no
>>> trespassing" signs. My sign is not big and neon
>>> orange. My sign is very small. It does not scream:
>>> "empty house." It is in 12-point type and says: "No
>>> Trespassing. Durham Police Department, Pursuant to NC
>>> General Statute 14-153.13 (1), I hereby authorize any
>>> officer of the Durham Police Department to arrest and
>>> remove any intruder found upon these premises. I will
>>> testify in court as to my power to delegate this
>>> authority. Please do not hesitate to phone me at any
>>> time of day or night. Thank you, Ken Gasch
>>> 919.475.8866 <tel:919.475.8866>."
>>>
>>> Do not board up houses!!!
>>>
>>> Ken Gasch
>>> REALTOR®/Broker
>>> Seagroves Realty
>>> www.KenGasch.com <http://www.kengasch.com/>
>>> C: 919.475.8866 <tel:919.475.8866>
>>> F: 866.229.4267 <tel:866.229.4267>
>>>
>>>
>>>
>>> On Thu, Mar 3, 2011 at 10:24 PM, Barry Ragin
>>> <bragin at nc.rr.com <mailto:bragin at nc.rr.com>> wrote:
>>>
>>> You know, for a city that's on everyone's list of
>>> the top ten places to live in the US, we sure seem
>>> to have a lot of vacant and abandoned houses in
>>> this town.
>>>
>>> I can't for the life of me understand why that
>>> should be.
>>>
>>> Barry Ragin
>>>
>>> On 3/3/11 4:30 PM, Melissa's yahoo wrote:
>>>
>>> Maybe Durham would consider hosting a contest
>>> where artists paint a board to be permanently
>>> displayed in windows that are broken/in
>>> disrepair. Durham could give a small cash
>>> prize and/or display the winning board at City
>>> Hall or something like that. It would be great
>>> publicity for the many artists in Durham and
>>> the Triangle. If this doesn't float, maybe we
>>> can make it a contest for schools or school
>>> aged children and give the winner a $200
>>> savings bond - this is what they did for the
>>> Durham America Recycles Day contest this year.
>>> Or the winner's school could get a raingarden
>>> installation or something like that, which we
>>> want to see done anyway...
>>>
>>> Melissa
>>>
>>> Sent from my iPad
>>>
>>> On Mar 2, 2011, at 7:13 PM, "RW
>>> Pickle"<randy at 27beverly.com
>>> <mailto:randy at 27beverly.com>> wrote:
>>>
>>> Since this is a current topic of a new
>>> committee, those involved (as well
>>> as anyone else interested) should view the
>>> recent window treatment
>>> (instead of plywood or other materials)
>>> used by NIS on a house located on
>>> Holloway Street. The house is located on
>>> the right in the first block
>>> (going out Holloway from downtown past the
>>> Public Library) just past the
>>> Dillard Street intersection. The house is
>>> white and I believe it's the 3rd
>>> or 4th on the right as you head out
>>> Holloway that way. This is a window
>>> treatment that offers security, yet looks
>>> like a window. The house also
>>> has fresh straw in the yard from reseeding
>>> (just to help you locate it).
>>> It has much better curb appeal than
>>> plywood and just casually looking, it
>>> looks like windows are in place.
>>>
>>> Randy Pickle
>>>
>>>
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>
>
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