HUD And REO Property Preservation

FremontREO

Call the owner Brett Ory at 800-516-6348. This is published information on the internet so its not info that is confidential. Make sure when you call-the secretary will ask "who you would like to talk to?" and sound like you talk to him all the time and generally they will pass you to his personal office/phone...At least it worked for me. GL

a1propertyclean

Preclock ~

Are you sure it was Cyprexx and not someone saying she's a representative of Cyprexx?

We've done 4 jobs for them but always asked ahead of time what the pay was. No one ever refused to discuss it with us and, if it was too low, we turned it down. We're not taking work from them because of the low pay but they were never unprofessional. Something just doesn't sound right.

Did they have you fill out a W-9 form so that you could get paid? I would do as FremontREO suggests and call someone. I think their main office is in Texas. Can anyone confirm?

If you're new to the industry, be aware. There are many who will take advantage, from those you work for and those who work for you. We've had our share of sleezy clients and we've had to terminate many unethical vendors from our network.

It's life - you just have to keep your eyes and ears open in order to minimize your risks.

Linda

BTW. Training classes are pretty much over for the year. We had our last one a couple weeks ago. But with holidays coming up and the fact that we're going into the unpredictable weather season, we probably won't have another until around February or March of next year.

__________________
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]

BPWY

I believe Cyprexx main office is out of FL.

PPREO1

I'm new here, been lurking for quite some time. It wasn't Cyprexx who called you. They are based in FL and have an 813 area code that can be easily googled. I have worked with 6-7 different state coordinators and have never had a problem getting paid and in the correct amount as invoiced. I don't do large volume for them, but they have never set pricing for me. I give them bids, they approve or deny, the work is done at that price. I also do inspections for them and do so at a price that is better than all but one other company I work with, so the low pay and not getting paid seems rather fishy. This is from someone that works with a dozen nationals and a few dozen agents, banks, relos, etc.

DaddyYankee

Hello all

I just finished reading all 383 posts. Took me about 8 hours. I read slow. I wanna say thanks to everyone who contributed information here. Linda I wanna have your babies. I decided I should give back a little since I did gain from this forum.

I am new but I have learned a lot about property preservation. I have been studying the business for 4 1/2 months now. I will hopefully start working just after new years. I will keep an eye on this forum and help give some feedback and knowledge.

Thanks again
James

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If it doesn't make $'s it doesn't make sense

DaddyYankee

Hello all

Its been a few days since my last post so I thought Id throw something on here. I have noticed that many questions here revolve around Errors and Omissions (E&O) and General Liability (GL) insurance.

Ive seen a lot of posts on here saying its not necessary and "I wouldn't take a job that required it". Which is all fine as a matter of opinion. Personally I think if your under insured your asking for trouble. Hopefully if you have it you will never need it. And that is way better then needing it and wishing you had it.

I went through a national provider for mine. I'm not posting the name here because I am not here to advertise or spam. If someone wants it email me. Ummm I don't know if my email works here lol. I better figure that out. Anyway, my premium was $1627.46. I was able to put 30% down, like $540, and pay the rest over 9 months. About $120 per month.

Oh and thats E&O and GL together. I scanned the paperwork and I don't know if its E&O with GL attached (thats what it looks like) Or GL with an E&O rider. I don't care cuz its coverage. It covers what all the National companies have asked for and if the want to be put on as additional insured you can. Up to 8 companies for free.

So with all that said and looking at the true cost of coverage I think it would not be the wisest thing to dismiss getting coverage in a business where one mistake(yours or employees) can literally put you out of business. I know I can't keep enough in my bank account to cover a flooded basement from a poor winterization....

James

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If it doesn't make $'s it doesn't make sense

XanadooLTD

Okay i also would then like to point out thet E&O and general liability for property preservation does not give you gl for private of public work. If you do general contracting outside of preservation you will need another insurance policy. This was explained to me by the insurance company. So look into it. If you think you can do work with your preservation gl you are wrong.

DaddyYankee

Hey all

XanadooLTD as far as I know is absolutely right. I only do property pres. If a property needs further work as in repairs this is not likely the right insurance for you. I suggested this here because this thread is titled "HUD and REO property preservation". If you do other work your likely not to be covered. I would hope if your doing other work you would already have a higher level of insurance that would likely encompass trash outs and winterizations anyway.

As always talk with your agent. I know its tedious, but its business so do it right. And besides that 25% commission your agent is gonna earn off you means he or she can answer all your questions no matter how dumb you might think they are.

My solution to repairs that need to be done is to bid them and sub it out. I bid for them. Don't low ball cuz I don't really want them anyway. I just take them on as another service to brokers and reo agents. I then get a fully licensed and insured contractor to do the work. I only make 10%-25% off the job but is enough. This way I'm offering "Full Service" with minimum investment and skill level(trust me ) and I still remain "mostly" free to work on preservation and management.

I welcome all your thoughts and comments

James

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If it doesn't make $'s it doesn't make sense

FremontREO

James you need to call that agent of yours again When you hire that sub you are the general contractor and thus you have the final liability on the project that is being done so you need to purchase the correct general liability. Also, in the P&P field you will be asked to do repairs on a property and you will need to purchase that seperate GL policy from your agent. That agent is going to make 10% off that policy if they are lucky so its not a "get rich" for the advise you will receive. Also, you should purchase work comp insurance since you ultimately will be responsible if anyone gets hurt on the job or require the sub to have work comp. Most States are getting to the point that if you can't complete IRS form SS-8 without a "yes" than you can be held liable for any work comp issues and we have found out that it is easier to purchase coverage and have no worries and no "extra bucks in the wallet" than to run the risk.
Also, we can't stress enough to have a good agent knowledgable in the P&P field for your E&O policy since the "big one" can hit ya anytime..
2 examples come to mind: 1)couch fell off a trailer and caused a fatality and no coverage since the GL didn't cover the insured once the "debris" left the property....E&O didn't pay since it was only for at the property protection..2) contractor was using a blow torch to thaw a property and burned down 5 townhouses and no insurance since they were not licensed to complete this type of work.
I know lots more claims on this business but not enough time
good luck

BPWY

Shop around, you can find ins for both. And it didn't cost me $1600. Took over a month of shopping and looking and talking to different folks and agents.

FremontREO

yeah it normally runs minimum premium for a very good policy $2400-$2600 with surplus lines fees and taxes for up to 40,000 of gross receipts than UP from there in price so yes shop around but look for the companies that have the policies that are "trully familiar" with the specialty market. Normally you can find them on National Association of Mortgage Field Services. They have several insurance providers to choose from but still get seperate policies for your repair and private work.

BPWY

Dang man. I aint paying a third of that. And have the INS that satisfies LPS and Five Brothers, among others. Mines just under $800 a year. And when I say satisfies LPS take a look at their website and see what their minimums are.

leadarrows

Got an Email from Asset Management Specialists and I am wondering if they are a good company to work with.

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I started out with nothing, and I still have most of it.

FremontREO

ya those 2 companies offer their own little policy that only applies to their work only...at least that is what they used to do. I wouldn't take that either and yes I work with both those companies. Know what you buy? LOL $800 a year won't even hardly pay the minimum surplus lines fee and the taxes.
Got to admit I don't like it 1 bit but if you are in business and want to keep what ya own you better have the cadillac that protects you for everything you do.

FremontREO

So far so good. Kinda different on how they want pics in .pdf files instead of .jpg and the pay isn't the best but otherwise they seem ok.

BPWY

I'm not insured thru them, and recheck their ins requirements. I am not running around with a $500,000 policy. Thanks for the concern.
I'm insured thru a 3rd party 100% unrelated to LPS or any body else in the MFS business.

justan

New to this forum, this is my first post. Have been in the property preservation field for 6 years. Does anybody know who has the new Fannie Mae contract in Indiana? Safeguard has lost the contract on REO properties from what I have heard.

BPWY

I heard that Field Assets lost a lot of territory to Asset Management Specialists, Inc.

Field assets needs to go out of business. My experience with them is they are all about trying to find folks to work for 1900 wages and then doing every thing in their power to screw you out of that pittance. Safeguard is another bottom feeding company. My experience with their grass cut routine this past summer (09) is they are a pretty poor company to work for.

leadarrows

So I what I gather is Asset Management Specialists, Inc is taking over areas of Indiana recently and they are looking for new people here so it's not a scam that I got an email from them. That's what I needed to know.
Thanks everyone I will send them the info they requested and see how it goes.

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I started out with nothing, and I still have most of it.

BPWY

A good friend of mine is signed with them out of MT. The top training/recruiting guy Dan J. has met with him twice.

They are also hiring subcontractors for their Quality Control. After a property is completed another guy comes in to critique the first guy's work.
I've also heard that the main office will check up on the quality of the maid service.............. with a white glove.



I knew your name sounded familiar....... from another site. Now I've got it. lol