HUD And REO Property Preservation

DaddyYankee

What do you consider the difference between PP and REO?


Thanks
James

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

oteroproperties

I don't have alot of time this morning, but for one, here in florida the REO guys get $35 on average to cut the grass and ours is $65. We do not trim shrubs unless we bid them and its gets approved, we only do exterior debris and interior heath hazards and infestation risk. And even though it appears Safeguard has lost the fannie mae contract p&p will still do fnm loans because we work pre-sale and the bank doesnt actually have title yet. the list goes on and on, but i have to get to the office, hope this helps,

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Residential Electrician 95-04
Residential Construction Manager 04-06
Real Estate Investor 05-06
Property Preservation Contractor 05-current

mtmtnman

P&P Pays $30 bucks out here for up to 1/4 acre.................

oteroproperties

no wonder everybody is mad. I didnt know that

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Residential Electrician 95-04
Residential Construction Manager 04-06
Real Estate Investor 05-06
Property Preservation Contractor 05-current

mtmtnman

I still say Safeguard is banging the bank full fare because if they were offering a deal every bank in the country would use them and other nationals would be cutting the rates.

oteroproperties

what are other nationals paying on jobs in comparison to Safeguard in your experience?

__________________
Residential Electrician 95-04
Residential Construction Manager 04-06
Real Estate Investor 05-06
Property Preservation Contractor 05-current

mtmtnman

Firstam is $85 initial cut, $80 re-cut minus 20% discount up to 10,000 sq ft. $105 initial cut and $100 re-cut up to 15,000 sq ft. MCS is the same but minus 25% Five Brothers minus 20%

All are $45 a cubic yard for debris.

oteroproperties

for us it depends on the client and the loan type. but that 20% is better then the 25 i pay currently. it doesn't seem like they are that far off to me. We get $85 per initial on average and on FNM, and FHA we get $105 up to 10k sf. the recut amounts depend on the client and the loan type. we get 30 per cyd on most conventinal and FNM loans, we only get $45 on FHA loans but we don't get many debris removals. the other nationals do seem to pay a little better though if those numbers apply here in FL. do you work for first american currently? i'd be interested in trying to get signed with them.

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Residential Electrician 95-04
Residential Construction Manager 04-06
Real Estate Investor 05-06
Property Preservation Contractor 05-current

a1propertyclean

Otero ~

First Am is cutting their vendor base way back and keeping only a couple of regional vendors in each state. If you want First Am work, you'll have to find out who their work is outsourced to and apply with them.

First Am still owes me several thousand going back 2 years next month. Don't take my word alone, though. Definitely investigate them before you accept any work.

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]

a1propertyclean

Keep in mind that the $45 per CY is for your state, not all states. HUD rates are different in every state. Check your HUD cost allowances for the initial and recut rates, too. Those and winterization rates will vary also.

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]

mtmtnman

Linda,

We were SUPPOSED to be preferred vendor here but come to find out they have 3 others as well. Being i will not drive 200 miles round trip for 2 $10 inspections they have cut my preservation work to near nothing and given it all to others. If you want the P&P you have to take the inspections and with a state that is almost 800 miles across and towns 100 miles apart inspections are a loss every time. Can't get anyone in these little towns to do 1 or 2 inspections either. They also owe me around $2000 some going back 9 months. They were great to work for until the last 2-3 months but i am ready to bail on them as of right now. My brokers have been keeping me plenty busy anyways.........

lawns4kids

Is there anywhere on this thread that can explain rates how much we can charge are we only allowed to charge a certain state allowable amount, what types of rates are ok to start at when applying to these companies? Someone help

mtmtnman

cubicyard dot us

mtmtnman

I am applying to many companies to try and cut my coverage area down. What i am running in to is some of these companies requiring work comp. I have a work comp exemption from the state of Montana as i am a sole proprietor. These companies WILL NOT accept this exemption. My problem is the lowest amount of coverage in Montana i can get will run me $2412.00 a year through Montana State Fund!! This is for $10,800 of coverage! No cheaper anywhere else because all agents also go through the state fund. They told me they do not even like to write on sole proprietors. I know in Wyoming you absolutely CANNOT get coverage if your a sole proprietor. I'm wondering if it would be cost effective to hire a part timer to go with me on a 1 day job once a week? What are all of you 1 man bands doing???

FremontREO

I think you might just find it a lot easier to pay the w.c. premium than to deal with FICA/W.C./ State/Fed taxes, unemployment taxes and all the other pleasantries you get with an employee? jmo

mtmtnman

I agree. I may just pass on these particular companies. I already have health insurance and afflac...........

FremontREO

Health insurance and a duck?
I don't know if this actually works since we carry work comp but I was told by 2 different crews that if you "sign on" with a temp service and ask that you get a copy of the temp w.c. that you can send that in and say you work through a temp service at times and they carry the w.c. for ya.
I know when we hire temps I get their copy of work comp for each job so we can claim on our work comp audits.

BPWY

I've heard that about them. They just loose your payment and paper work and then stall you until you give up on trying to collect. Hey its an extra $2000 for them. If they do that to one contractor in each state per yr it adds up to a nice amount of money.

XanadooLTD

Okay it is now my turn to vent quickly. We have been in business for 37 years. Our major focus is on public contracts. We picked up some reo work as we saw the real estate market crash coming. We got in at a great time. The problem is that i take my job seriously, my guys take their work seriously. We are an actual company. We were not some guys laid off and started this thing with high hopes. Which leads me to my problem. As this type of work gets out to the public i see people starting up shop and bidding against me on different jobs. Hey, not a problem there. I love it. The more the merrier. My problem is that people who have no idea what is involved jumping on board and trying to get involved. I am letting you here know, because i feel that most of you guys in this forum are true company owners. There is a major difference between a copmany owner, and someone looking to score some beer tonight. So a hack company comes in...bids work per hour at their last job...say 10 bucks an hour. Great if you can do it. But then the fun comes. They mangle stuff, they don't include profits, overhead, insur......you know the stuff. They get underwater and then drag us down with having to then complete their work at unreal prices, etc. Also when they are forced to bid properties and they don't know how or what to bid. There is a problem coming your way if you have not all ready seen it. These guys are going in and making up bids. square footage, taking photos of their buddies houses, etc. It wastes our time sending someone to bid as work does not exist at these properties. Then the photos of their buddies house shows we didn't report something and we are told to go and complete as it was not given previously. Look i am in the business to make money. Not to waste time.
So to all of you here. Watch out, because even this business has hacks coming. Be on the lookout!

oteroproperties

we have been running into the same problems, however the "other guys" are not really falsely reporting issues, more they are missing relevent issues all together. Nevertheless this causes the same type of problems for us. We just need to weather the storm.

__________________
Residential Electrician 95-04
Residential Construction Manager 04-06
Real Estate Investor 05-06
Property Preservation Contractor 05-current