Remember the movie Predator?
Who can forget, right? Arnold Schwarzenegger, Jessie Ventura and the whole lot of them, scrambling around like maniacs trying to figure out what the heck kind of invisible enemy they’re even fighting.
Turns out it was a dreadlocked alien sportsman with a weakness for big-game human hunting. Oh, and the coolest “Predator Vision” ever. Remember that? No matter where the team of commandoes came from, day or night, the Predator could always see ‘em coming, thanks to his handy-dandy, thermal-imaging “Predator Vision” facemask.
Fast forward to today, and “predator vision” has become relatively commonplace. From Special Forces and military aircraft to “ghost hunters”, it seems like there are always infra-red shots lighting up the night.
Hmmm… So, how do you think real estate investors like you and me could use something cool like this? Something that sees what your normal eyes don’t, that tells the difference between hot and cold?
How to Save Thousands on Rehabs and Negotiations
The technology we’re talking about here – that allows you to see at hot/cold maps in real time, even at night – is called FLIR or Forward-Looking Infra-Red. FLIR essentially uses thermal imaging technology to turn sources of heat into light.
So if you’re a Special Forces op (or a Predator for that matter), the people you see on the ground will show up in variants of color (usually red) due to body heat and colder things like vegetation will be darker blues or black. Infra-red technology really helps contrast heat sources from colder surrounding areas.
And the fact is, when it comes to your real estate investing endeavors, differences in temperatures can actually tell you an awful lot about an investment property you are about to buy. Increasingly real estate pros are catching on to this and using FLIR tech to help them make decisions.
FLIR Lets You Look Behind the Kimono
For example, ‘hot’ areas in walls may indicate the property is not well-insulated. Which may cause high heating or air conditioning bills. On the flip side, ‘cold’ areas in walls could indicate a water leak,
which could be disastrous down the road.
It may be nearly impossible to see these problems on a mere visual inspection of the house or commercial property… and yet that’s exactly what most of us have to rely on solely, right? This is where thermal imaging can weigh in like a champ.
And we’re not talking about the future here, people – this is already happening. Using thermal imaging cameras and other devices, home inspectors, and increasingly real estate investors, are ‘looking’ into walls, HVAC equipment and electrical panels to determine if everything is ok.
Here’s a sampler platter of expensive property problems a thermal imaging camera can unveil:
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Water leaks around improperly-installed (or old) windows and doors
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Improperly installed or older, settled insulation
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Water seeping in through the houses’ exterior
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Plumbing leaks inside the walls (could be pipes, toilets, showers, sinks or bathtubs)
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Water intrusion through the houses exterior covering (whether the house has brick, stone, stucco or siding)
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Unsealed heating or air conditioning ducting (which might cause condensation and water damage)
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Leaks in roofs, vents and skylights
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Electrical faults (or potential overheating problems)
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Rodents and insects (setting up shop in your walls and ceilings)
You abso-freaking-lutely want to know about these potential problems before making a large investment, right? Well with FLIR thermal imaging tech, you can use your “Predator vision to detect many of these problems that cannot be seen visually – which obviously means a far easier, faster and cheaper way to (i) know exactly what you’re getting into in advance, and (ii) help your contractor pinpoint and get right to the source of the problem without ripping open walls.
Hopefully you’re smelling what I’m cooking here – being able to identify these problem areas can really help investors like us out – especially when buying the property. For example:
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You can use thermal imaging results to show the seller problem areas in the house they aren’t even aware of themselves.
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Then you can either (i) negotiate a lower purchase price, (ii) have the seller fix the problem before closing, or (iii) decide it’s not worth the trouble and save yourself a whole pile of headache and expense.
Let’s See It in Action
Here’s a real-life look at some invisible-yet-expensive house problems revealed with thermal imaging:
And check this out – it’s a FLIR virtual thermal simulator! You can explore a virtual house using thermal imaging and see the types of problems it uncovers. Pretty neat really.
How Do I Become a ‘Spec Ops’ Investor?
…Which sure sounds a heck of a lot better than becoming a “Predator” investor, doesn’t it? Geh…
So anyways we’ve all heard of the $600 hammers bought by the military, right? And truth be told, thermal imaging was no different when it first came out in the commercial market – ex-pen-sive.
But just like computers, DVD players and video recorders, today that same thermal imaging is has an increasingly low barrier of entry today – the prices have come waaaaay down to around 1/5th to 1/10th of what they used to cost.
If you want in on this, there are three or four routes you can take to use thermal tech like FLIR for your real estate deals:
Option 1: Find a home inspector with a thermal imaging camera.
If you use a home inspector with a camera, try to find one who is licensed in using it. People can interpret the readings differently. At least you can talk to him or her about what they see, so if you want one later on, you can learn more and more about how to maximize its use.
More and more home inspectors are buying these devices in order to differentiate themselves and offer more service to their customers.
Option 2: Buy a thermal imaging camera.
This is especially viable if you’re already very active in the business and find yourself are going through a lot of houses regularly.
Buying an infra-red camera is still a relatively expensive proposition, but prices are dropping fast – cameras that until recently cost over $5,000 are now selling for around $1,000. Look for them to drop more in the future. I know it sounds expensive, but consider: What’s the cost savings of finding just one leak without tearing up a wall? It could easily exceed that amount quickly.
Option 3: Rent a thermal imaging camera.
That’s right, more and more, the “Big Box” stores are renting thermal imaging cameras. So if you are just starting out, or maybe suspect a few problems from a seller’s house, you may want to pick one up. Make sure you talk to the employees when you rent so you understand how to use the camera.
Option 4: Buy a cheap ‘non-contact’ infrared thermometer
You can usually pick one of these up for around $40-$50.
Although these thermometers generally measure the temperature at a certain spot (rather than across a whole wall) they can be useful for seeing if air conditioning or heating vents are putting out enough hot or cold air, detecting leaks around windows and doors, and spotting potential electrical overheats in circuit breaker panels.
Same idea as Predator vision really, but not nearly as efficient (not as cool). But as you go out to inspect houses, this could be very handy for you in lieu of the ability to have your own “Predator vision”
Bottom line
This is a really neat evolution of a very cool tech – and used well, it can definitely save investors a boatload of expensive mistakes in the course of doing deals.
Housing technology is improving all the time, making our business as real estate investors easier and easier. I encourage us all to embrace and exploit these new technologies as they become accessible to us.
What do you think? Talk to be below.
Look for Thermal Imaging – Call up your local tech store and see what a FLIR or something similar might cost you. Consider it as an investment in your business. Call the local “big box” stores and see what the cost to rent. See if you can zero in on a local home inspector who offers thermal imaging as part of his deal. Bottom line, explore this for yourself and assess your options – and weigh if it might be a worthwhile investment in your real estate business.
Try the FLIR Simulator – Have some fun with a virtual thermal imaging camera and see what it can show you in a house. Check it out here…
Learn about Construction – There is a whole lot of know-how that goes into building a piece of real estate. The more educated you become on construction, the more you will be able to spot problems. Spotting problems translates into more money for you –either by detecting the problems early, or negotiating discounts due to the problems.
Talk to Home Inspectors – A home inspector can save you thousands, or even hundreds of thousands. Talk to a bunch of them. See what are the big problems they see recurring in your area. Ask them what kinds of technologies they use to do their inspections.
Spend Time in Hardware Stores – Talk to the employees, many of whom used to be licensed contractors. Learn what new technologies are coming out to help homeowners and investors. Then when you are ready to do a rehab, you can minimize costs (and maximize profit) by using the latest materials or inspection techniques.