The Human Side of Real Estate Investing
by Paul & Tanice Myers
This article is one of a series of reports from “in the field” by Paul and Tanice Myers, creators of “Road Warrior Investors.” In this case study, Tanice recounts how the Road Warrior Investors “reclaimed” a known drug house and made the community around it safer for everyone.
When you walk or drive through a neighborhood, sometimes, you see a house and just know something is wrong there. You can feel it when the neighbors talk about it. You can see it when the police are in the drive day and night. This story is about one of those houses.
For years, it had been the known drug house in the neighborhood. The police were called regularly. People came and went at all hours of the day and night. The activities inside were not hidden, and it was not a secret. Families that lived nearby had to watch it all happen for years, and they were tired of it.
The Background
When we first became involved, the property had already been under contract for nearly a year. The seller was falling further and further behind on payments, and the reality was becoming impossible to ignore: He was headed toward foreclosure.
The unfortunate truth is that, over time, drugs had become the priority in his life. As a result, the house continued to deteriorate while the mortgage payments fell further behind.
On top of this already painful truth, there was another big challenge: trust.
The property had gone into and out of contract multiple times already. We believe much of that came from the skepticism and fear that often accompany addiction. The owner was not capable of determining who to trust. He was never confident the deal would close. He never felt certain someone was not trying to scam him.
While all this was happening, the clock kept ticking, and the owner eventually reached a crossroads. He could lose the house to the bank and walk away with nothing, or he could choose a different path and sell. Fortunately, when he reached that decision, we were there.
When we finally closed, the house reflected years of neglect. It was full of belongings, deferred maintenance, and the signs of a property that had not been cared for in a very long time.
The Saga Continues
Closing was not the end of the story. In fact, it was just the beginning. As part of our agreement, we gave the seller a week to move out of the house and another ten days to get completely off the property.
We anticipated that this part of the transaction might get complicated, but we did not anticipate what came next: a new lesson for us in real estate investing. After moving out of the house, the owner moved into a trailer sitting on the property, and then he plugged his trailer into the house.
So, yes, he was not living in the house anymore, but he was still right there in the backyard using our electricity, driving up our water bill, and generally inhibiting forward progress toward a sale. Most problematically, technically, according to our agreement, he still had the right to be there.
Lesson learned.
Real estate has a way of teaching you things no classroom ever could. To the owner’s credit, he was trying. He had friends helping him. He had a U-Haul. He was sorting through years of belongings and trying to figure out what came next.
We tried to help, also. We brought in dumpsters and worked alongside him. We helped where we could, but what we thought would take a week turned into something closer to a month. It was taxing, but something unexpected also happened.
We got to know the neighbors.
I still remember standing in the middle of the street talking with them about the situation. They weren’t being nosy, but they were relieved someone was finally listening. They shared stories about what they had lived through over the years: the late-night traffic, the police visits, and the challenge of raising children next door to constant activity. Over time, they had watched this house become something the neighborhood was never proud of.
Not surprisingly, they wanted to know who we were, what our plans were, and how it was all going. They were looking for a reason to hope that things were on the mend. For a while, it felt like things were improving, but then the texts started, late at night. We put our phones away at night, so in the morning, we would see a flurry of accounts of activity at the house.
The police were there again.
There was suspicious activity again.
The owner was arrested again.
Underneath every update was the same question: “When will this be over?”
The neighbors weren’t angry, but they were exhausted due to years of uncertainty. They just wanted to believe it would soon be over. Finally, after several more weeks, the seller moved on.
For the first time in years, the property was empty, and you could almost feel the neighborhood exhale. For the first time in years, people weren’t talking about what might happen next at that house. Instead, they were talking about what it could become.
The Real Work Begins
Once construction started, we quickly realized just how much work the property needed. There was so much damage that had not been visible previously. During demolition, the team even discovered a hidden stash of drugs inside the house!
Then, in the middle of the rehab, another surprise arrived: A man walked into the property in broad daylight demanding to know why we were inside what he believed was still his uncle’s house. The team quickly explained that the property had been sold and that he needed to leave. He did leave without incident, but it was another reminder of how long the reputation of that house had lingered.
Over the next several months, we completed a six-figure renovation that included a new kitchen, bathrooms, flooring, and systems as well as fresh pain. It was a complete transformation. As the project moved forward, so did the neighborhood.
We noticed neighbors refreshing their own properties: cleaning up landscaping and taking on other projects they had put off for years. One neighboring duplex owner liked what we had done so much that they hired some of the same people to refresh their own property as well.
Positive change has a way of spreading: One house, one yard, and one family affect the next. Today, it is difficult to recognize that property. The house that once brought stress to an entire street is now one of the nicest properties in the neighborhood.
What we remember most, however, are the neighbors. When we are back there today, they still wave, smile, and stop to talk. Maybe the thing that means the most is that the kids are outside playing again. It seems like a little thing, but when you have watched what this neighborhood lived through for years, it means everything.
The most rewarding part wasn’t the renovation, the numbers, or even the whole project itself. It was watching a neighborhood begin to believe again.
Every house affects more than the people who live inside it, and sometimes, after years of waiting, a neighborhood finally gets its house back.
Learn more about Paul and Tanice Myers and Road Warrior Investors at RoadWarriorInvestors.com.
