HUD And REO Property Preservation

King of Crown

Hey guys, I am curious if any of you do work for property preservation companies who work with lenders. I have some questions, but dont want to waste my time if no one does any work for them.

Thanks.

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Real nice guys

mdshunk

The property preservation guys (winterizing, boarding up), get the advance inside scoop on what's going to be for sale. I have a very close acquaintance who's managed to build quite a portfolio of rentals because he's on the HUD and USDA property preservation contractor list. If you have a desire to aquire property, doing this type of work here and there might not be a bad idea. You might even be able to sell the "lead" to someone who buys rentals or rehabs property.

King of Crown

That is awesome. Thanks. You just answered all of my questions too in allot less time than I could have asked them. Appreciate the help.

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infiniti

hello, i am seriously thinking about getting into the buesiness of Property preservation, i have no experiance, but wanted to know any suggetion i can get from someone who is in the buesiness already, where do i go to teach my self well as far as, winterization, proper board up, pricing, i d greatly appreaciat any help anyone can give me.

jonathan, thank you, you can emial me at yderar@yahoo.com.

a1propertyclean

Jonathan ~

I own 2 property preservation businesses. There's a lot of up front money involved if you want to do it right. You'll need general liability insurance, decent equipment, fuel, equipment rental, and labor. A website wouldn't hurt either, even a simple one like mine. Plus, you can go weeks without substantial work until everyone knows you're out there.

It was a terrific struggle to get to where we are now but, if you're determined enough, send me an e-mail to allreopreservation@gmail.com and I'll see if I can help.

I cover 5 counties in Southern California, the tri-state area of Nevada, Arizona, and California, and will soon have another startup out of Idaho.

I have an awesome crew and the best, most efficient office staff. But it was awhile before I could hire the right labor because the money is slow coming in. Now I offer 30, 60, and 90 day terms and payment plans to lenders and brokers.

I hope all that doesn't scare you off. There's a lot of work out there for the right type of person. If it didn't scare you off, contact me.

Linda

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Linda @ All REO Preservation
http://allreopreservation.com
allreo.vendor.review@gmail.com [experienced vendors only - please list state and counties if you're looking for work]

XanadooLTD

If you have no experience good luck. The first time you screw up inspecting a property. BAM huge lawsuit. Study before you jump in. Let's not make the preservation side of lending like they did with making the loans.

ravynd

Linda,

I couldn't help but notice that you were a female too. I too am interested in getting into this business. I'm a little concerned because I've had several people tell me this isn't a business for women. I have no experience in this industry and I've been online researching as much as possible about property preservation. Do you mind telling me how you got started? I'm a MBA graduated w/ a career as a Financial Analyst studying to be a CPA. This is an entire different industry but was informed that this business is "much needed". Is this a realistic industry for me to enter without any experience? What type of credentials are needed?

ravynd

I too am interested in getting into the property preservation industry. I don't have any experience and lacking knowledge on the industry. I've been doing research online but can't find the negatives of the industry.

I have a dumb question, but can you tell me what you can do wrong to cause a lender to sue you?

boman47k

I did a quick google and just scanned the subject and this could get interesting. Seems to be a way more to it than just boarding up a few windows, draing pipes, etc..

Speaking of draing pipes, I have come acroos meters that do not completely shut off. So I would think with the possibility of pipes refilling and rupturing, maybe the meter would be capped off?

XanadooLTD

Yes it is much bigger than just boarding up windows and changing locks. There are different insurances along with the ones that you all ready carry. It is more inspection than anything else. You have to know a building, you can't just go at it with a screwdriver and some nails.
As for being sued...THERE ARE MANY! But most likely, you go to a neighborhood and you start putting a board on a window. Next you notice the buidling inspector pulling up behind you. He wants to see your permit. I bet you guys didn't know you need a permit to board windows.
Then you go to the next house and you perform a winterization. Well you miss one key step and find out 3 weeks later that there are 60000 gallons of water in the home and mold has ruined all drywall, etc. Those are just a few lawsuits...Like i said before there are many more. But let's not turn this business into the Bear Stearns, or Enron, Mortgage crisis with a bunch of people jumping in just to get some money.
Also the companies i have seen doing this do an extensive back ground check and you do need to be in the construction business for a certain number of years. Not just any hack can sign up. good luck to all if this is the field you choose.

boman47k

I would think they would want the same access to previous claims on the property like ins companies have. Can't think of the data base or what the report is called, but it lists any claims a property ower has had with ins co's. Who wants to be liable for pre-existing mold,etc.. Or maybe the mold had been removed but the problem that caused the mold has not been corrected. Good thought provoking thread.

a1propertyclean

[quote=ravynd;433565]Linda,

I couldn't help but notice that you were a female too. I too am interested in getting into this business. I'm a little concerned because I've had several people tell me this isn't a business for women. quote]

Now, why in the world would your gender stop you from doing something you really want to do? Don't listen to other people, listen to yourself.

I don't have a degree but still managed to work my way pretty far up the corporate ladder into executive management. My biggest problem is I can't stand office politics and gossipy old men and women who don't have a life of their own so they have to live vicariously through yours. And last, but not least, I really loathe working for other people.

I was raised to be independent and learned a long time ago that I can take very good care of myself and be as successful as I want if I put my heart and my back into it.

Just learn everything you can and find someone willing to train you in the industry. Be sure to understand, though, that you'll exchange your time for the experience and education. No one I know of offers paid training to people going into business on their own.

Also understand that it's very physical work, the hours can be long and hard, and you'll have to know the administrative side of preservation. I work roughly 16 to 20 hours a day, 7 days a week. As in any business, you have to be able to give it everything you've got and commit to what you started in order to get anywhere.

Thanks, BTW, to all of you who have contacted me through this post. I've managed to receive an overwhelming number of inquiries. I've made some wonderful contacts, hired 2 subs, and have one more who finished his training last weekend to help me with the local work.

To those who I've not responded to yet, please accept my apologies. We're butt-kicking busy here in Southern California and I find myself spending less and less time online, except to work.

One thing I know is that, if you're willing to commit yourself, you can do anything. Gender, race, religion, and a multitude of other things should never be an obstacle.

Linda

__________________
Linda @ All REO Preservation
http://allreopreservation.com
allreo.vendor.review@gmail.com [experienced vendors only - please list state and counties if you're looking for work]

MVH

I start my first Fannie Mae foreclosure rehab today. Its just some paint, minor repairs, and carpeting. I'll keep you guys posted on things like payment cycle times.

There's not a lot of money in it, but it is great filler to keep the the schedule full.

Mike

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Mont Vista Company, LLC
Alpine, Apache Junction, Gold Canyon, and Mesa, Arizona
Apache Junction Builder
Gold Canyon Builder

XanadooLTD

If the work was set up through a bank that was servicing the loan, you shouldn't have any real long delay. If it is actually coming from the government it will be some time.

AtlantaLawn.com

who decides the pricing? them or you?

thanks

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MVH

You bid on the job against at least one other licensed contractor.

Mike

__________________
Mont Vista Company, LLC
Alpine, Apache Junction, Gold Canyon, and Mesa, Arizona
Apache Junction Builder
Gold Canyon Builder

XanadooLTD

Actually VA, FHA, and conventional lenders all have set prices in their allowable category. If you go out to aproperty and can do the work...its all yours. If you can't then you bid. Sometimes the work gets done, but most of the time you waste time bidding.
Say you go to a house where the roof is leaking in 7 areas. You bid to replace the roof. Figure how long it takes to look at the roof, figure out the price, etc. You submit the bid. You wait a few weeks to see if the bid is accepted. 2 Months go by and you hear nothing. 8 Months later you drive by the house. Now the house is for sale and the roof is worse than it was a year ago. It is hit or miss depending on how much the bank has to spend on keeping the house up.
If they take a big enough loss on the house, all you are doing is changing the locks.

SWPreservation

My company has been doing propety preservation work all over Arizona for the last year. Our biggest struggle is finding quality people to perform the work. Most banks want homes secured within 24 hours, which can difficult if they happen to be a 2 hour drive. Like one of the previous posters said, it takes a lot of up front money before you start turning a profit. Banks understand the longer they hold onto the money, the more they make off of it. Banks are you customer, so don't expect payment in a timely manner. Pricing depends on who your customer is, if you are sub-contracted out or work directly for the bank. Feel free to contact me if you have any questions in the trade. You can find more information about the trade at our website.

Kirby
Service@SWPreservatoin.com
(866) 831-1451
swpreservation.com

User27123

Yes, we are a property preservation company in Texas. We have been the exclusive vendor for Fannie mae for over 10 years. We also work with numerous brokers and lenders.

3DVikki

Hi guys, Im looking for info on how to get into the REO property preservation. My husband and I have a cleaning company in Phoenix and we clean for Property Management companies. I would like to branch off to REOs. I wondered if anyone works with Safe Guard or First American Field Service. I have applied on line for both. It my understanding that they are the middle man between me that the Bank. Im wondering if they are reliable companys to work for, or if there is another way to go about this.
Thanks in advance for any help and suggestions.

Vikki
vbolles@q.com