Gang property takeover in Aurora Colorado

by Zain Jaffer

As investors, landlords, property developers and managers, the perfect scenario for us is that we build the property at the best cost that gives us optimal property market fit and quality, ensure safety and satisfaction, get plenty of buyers or tenants, and collect all our sale, lease or rental checks on time. How we all wish.

Except there is this thing called real life that ruins everything. Maybe that is why it is called real estate. Because we get a dose of reality all the time.

I’m sure you have all seen your fair share of headaches and problems that ruin the perfect check generating property scenario. From disasters, tenants from hell, legal headaches, and all that.

Now comes disturbing news from Aurora Colorado about a gang takeover of a property [https://nypost.com/2024/10/14/us-news/aurora-landlord-says-tren-de-aragua-took-over-apartment-tried-to-extort-them/]. If you hear or read about this from mainstream media, there have been denials that this is a “national” problem. Here is a Twitter post from @CbzManagement [https://x.com/CbzManagement/status/1844823369394376838] who runs a property there that is gang infested. I leave it up to you to read the full details of this sad affair, but let me quote a few instructive passages from it.

From the tweet [https://x.com/CbzManagement/status/1844823369394376838]: “After some time, we noticed a rise in crime and tenant complaints. The most alarming moment occurred when our local CBZ representative was attacked at the end of 2023. He had gone to inspect a recently vacated three-bedroom apartment (a rare occurrence for such a large unit) only to find a group of men already inside. When he refused their $500 bribe to overlook the situation, they brutally attacked him.

Those who are not involved in real estate might believe the idea being bandied about that this is not a “national” problem. Indeed it is understandable. No Mayor or Police Chief wants to be tarnished with the accusation that they are not doing anything about it. But in reality, as we see in the movies, some small town police forces are unfunded and hopelessly outgunned and infiltrated by criminal elements. Again another dose of reality.

From the tweet [https://x.com/CbzManagement/status/1844823369394376838]: “We also frequently found people illegally occupying newly vacated apartments during scheduled tours. This was initially attributed to an influx of migrants exploiting squatter laws. We even received a call from a tenant returning from vacation, only to find strangers living in his apartment. This legitimate tenant was forced to find a new home after police couldn’t help him. When confronted, many of these illegal tenants and squatters claimed they had already paid rent, which we soon realized was true—but not to us. They were paying rent to a different entity.”

Unfortunately for us, even if we have to deal with properties across the US and elsewhere, each property is a local issue. We have to deal with the crime, natural disaster, economy, and other local factors in each place. We cannot help it. Our wealth and money is unfortunately immobilized to the ground.

The worst part is when we assume we can approach the authorities for help but they cannot or worse, will not, help us. Now there are always two sides to a coin and maybe there is something unmentioned here, but why would the property owner lie in this case? What is their incentive to do that?

From the tweet [https://x.com/CbzManagement/status/1844823369394376838]: “Once we fully understood what we—and our tenants—were facing, we expected a swift response, with the city offering meaningful resources and police protection—perhaps even from the National Guard—to help us regain control of our properties. That never happened. Instead, we were left helpless, watching as violence, bullets, and destruction overtook our buildings. Many of our legitimate tenants fled out of fear.”

Most of us are in this business assuming that the laws of the land, the government and the police are there to help us. In many cases they are, but in this case one wonders. Safe to say none of us want to be in this scenario, which sounds like something out of a crime movie.

We all want that steady rental or lease payment and maybe just do a few improvements and renovations here and there. Most of us do not want headaches in our lives, because we have enough of those as it is.

This situation in Aurora Colorado should not be diminished, and should be squashed immediately before a local issue becomes a widespread national one affecting all of us. ###