HUD And REO Property Preservation

Ryan Harter

Thanks for the offer but thats to far. I'm in southern California, I operate out of Murrieta.

CaliJoe

For anyone considering contacting Linda for potential work, go ahead. Linda is a quality gal! We haven't had the pleasure of meeting face to face yet, but we are working on some estimates together and she is great.

Thanks Linda for your valuable insight

a1propertyclean

Ryan ~

The offer of work in Placerville was a general posting.

I just responded to your e-mail. Thanks!

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]

a1propertyclean

Angel ~

I'm looking forward to meeting you very soon. Thanks so much for the kind words and I hope the jobs you're estimating for me come through for you!

It's definitely a pleasure working with a professional.

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]

chip69

if any of you guys need a good sub contractor in the central valley,contact me, i am a licensed b contractor,looking for some work. i would also like to get into the property preservation industry, i have alot of experiance in fire and water restoration,and i think this wouldnt be that much different. if any of you know how to get on venders list,that would be good also. thank you!

CompleteClean

First of all, thank you so much Linda for all that information. Those are the exact things I'm learning, and it looks like you've been through it already. So it's very comforting to know that I'm going in the right direction. Patience, integrity, and fairness is a big plus for me. Thank you!

As far as removing that camper.. since it is personal property, it should be removed by someone who is able to place a lien on it by contacting the registered owner. I had a situation with an abandoned boat, and wouldn't touch it, since I don't have an impound location in which to store it, or the means or knowledge to place a lien, yet. I did find a person who will remove the property for free, and takes care of all of that. If you would like that information, please email me. I'm not sure if I should post his info on a blog, but I'll be happy to share it with anyone who is looking for someone who can remove these items legally, here in the southern California area.

info@CompleteCleaningSystems.biz

chip4506

Hi all. I'm in the process of getting my business up and running and just took out a general liablity insurance policy. My question is, is it recommended to be bonded as well? If so, how much? Thanks for any feedback.

a1propertyclean

Chip ~

Being bonded is not a requirement for the preservation industry. But it DOES look nice on paper and is very inexpensive. Potential clients see it as a guarantee that they have recourse against you should one of your employees steal something from them.

One nice thing about working in foreclosed homes, though, is that there is usally nothing but trash and the properties are unoccupied. Very rarely is there any personal property to steal.

What you'd want is not a construction or license bond but an employee dishonesty bond, the going rate being around $100 to $120 per year. I've been bonded since day 1.

Here's something else you all might want to know. E & O, or Errors & Omissions, is a contractual insurance. It covers potential harm to the client if the contract isn't followed to a "T". I've never seen the point in carrying it because property cleanup does not require a contract.

Most asset management companies, however, are requiring it these days. But it's expensive and I just turn down the companies that want me to have it. I have enough business without the extra expense of E & O.

Good luck to you, Chip. Sorry I haven't replied to your e-mail yet but my company is shifting its focus away from asset management companies and there's a lot involved in terminating them. I've been so busy with agents and brokers' jobs lately that it's hard for me to respond to everyone who writes.

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]

a1propertyclean

I just put a photo album together here at CT of a plexiglass board up we did recently. If anyone wants to see it, click on the Photos link above.

In looking at the photos, they all uploaded in reverse order. So you might have to view the progress from the bottom up. [And, yes, that's me doing the board up.]

I work in the field with my crew all the time and will try to post a few albums of the different things we do. Hopefully, it will help a lot of you who are interested in property preservation work.

We'll be doing a pool drain today and I'll have photos to post over the next couple of days. BTW ~ in California, pool covers are not legal per HUD guidelines.

Enjoy!

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]

chip4506

Thanks so much Linda! Is there a company you can recommend for the "dishonesty" bond?

a1propertyclean

Chip ~

You're in California, right? Contact my agent, Dottie, at Allstate. Her phone number is (408) 465-2392. She's the best agent I've ever worked with and she can get you hooked up with a bonding company.

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]

nuvision

My wife is a real estate agent and she is now doing BPOs for the REO companies. I a handyman and would like to start a property preservation company. Do I need to get a contractors license in order to start working and does the insurance company require a contractor's license to issue a general liability insurance policy? What's the best insurance companies would you suggest to use for the insurance policy? Thank you very much and I appreciate your help.

dawginme

Great question! I was wondering the same thing. Someone please help with this.

rodaconst

Linda,

I am in the process of starting my own property preservation company. I think I have all of the work methods down except one. I was curious if I could get your advice on the best method for entering a home for the first time. Ive been told to drill the lock out, and other methods of the sorts. How do you tackle this task?

Thank you

a1propertyclean

Carlos ~

There are many methods of gaining access to a house.

I do about 90% of the lock changes for my company and I really don't like drilling all that much.

I always look for an open door, window, or doggie door. Yes, doggie door. I fit through most of them. Just crawl through and unlock the front door. And I've gone head first through high bathroom windows, too. [Nearly ended up in a nasty toilet one time.]

One you're familiar with, and have enough of, the standard key codes try your keys in all the locks. Sometimes the previous preservation crew has already re-keyed the house for the previous broker or asset manager. You'd be surprised at how many times this has worked for me.

All in all, I only end up drilling about 1% to 2% of all the properties I change the locks on.

There are a lot of other methods but I won't list them here. Burglars have enough of their own info, they don't need mine.

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]

rodaconst

Thank you for your advice. Im starting to see that their are plenty of alternatives to entering a home, other than breaking in. I have another quick question, since you seem very knowledgeable in this industry. I just got accepted as a vendor with Safeguard, and I should be getting work orders by tomorrow, or so. My question is, did I make a bad choice in choosing Safeguard as a start off point for my company, should I have gone with First American. The reason I ask is because Ive been told that First American pays better, and more quickly as well?


Thanks,
Carlos.

a1propertyclean

Carlos ~

Safeguard is NOT a bad choice for a starting point. It's a VERY good way to get your feet wet.

I'm having issues with First Am right now. I'm going back and forth with them because of non-payment and short-payment issues and have been shifting my focus away from asset management companies. I'm concentrating on offering my services to agents, brokers, and banks.

Asset management companies have their upside and their downside. Once you have an issue with even one person at the administrative level, there are residual penalties imposed on you regarding future work, even if the problem is because someone on their end failed to do their job.

In my case, someone in their office didn't do my address change when I moved, which would have taken less than 30 seconds. As a result, I did not receive a check for 4 weeks and had no way to take care of all the work they gave me by the end of that 4 weeks. No money for gas, trucks, trailers, dump fees, or labor. They nearly shut me down and didn't even care.

Then, since the work was behind, they pulled work from me that I'd already completed and gave it to another vendor. As a result, there's a vendor out there who got paid $1,800 and didn't even have to do the work. I've been fighting that one since day 1.

One of the missing checks went to my ex-partner's residence, thanks to the Post Office. It never has shown up anywhere so I assume he's just holding it out of spite. The other 3 showed up within a day or two of the replacement checks from First Am.

By the time I received my payment, they had lumped everything into a check so large the bank held it for another 10 days. Thank goodness I have a good relationship with my bank and they were able to release $5,000 to me the day of the deposit and another $5,000 2 days before the end of the hold. The other $15,000 was sorely needed by that time to pay my subcontractors who had also been waiting for payment.

This, of course, gave my ex-partner another way to undermine my operation, which he was already trying to destroy because of his jealousy. He's cost me 2 subcontractors and 2 employees, has sabotaged both of my trucks and half of my equipment. I have video of him showing up at 3 am here at my house.

Fortunately, I'm strong and so is my business. Once all the other partnership battles are resolved, he'll be facing libel and slander suits. In the meantime, I have a business to run and don't have time for his nonsense.

Things in this industry are not always easy, to say the least. Remember there's always someone around the corner who can hurt you as easily as help you.

As in every business, there are good people and there are bad people. So, keep in mind that even the simplest of problems can turn into big ones faster than you can form the thought.

Sorry for the book, Carlos. Your question touched a sensitive spot regarding First Am and I felt it necessary to warn people that things happen. You can easily go from being paid "weekly" to being paid "weakly".

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]

dawginme

Hello all. I'm trying to get started in the property preservation business and I want to start off by doing everything right the first time. This board has helped me tremendously! My question is, do I need to get a contractors license in order to start working? My plan is to do some of the work but mainly my focus will be growing the business and handling the administrative side of it. I am also a real estate investor and I have several contractors that are able to do most if not all of the labor. Thanks for any advice that you can give.

Jay~

chip69

if any of you need a good sub contractor in the central valley, calif. e mail me, im fully licensed and insured! also i can do any and all repairs,

rodaconst

Wow that sounds like some ordeal that you got yourself into. Im starting to see that their is potential for this business being very lucrative, unfortunately you have to have some access to money at all times, especially when your dealing with companies who take forever to pay. As far as my company goes, well we are only days into being in business. To tell you the truth so far Safeguard has treated me right. On top of that Im advertising with agents, and banks, etc..so that I may have as many job opportunities as possible. This business is very exciting, especially since its my first start up after college. I knew I was going to have to go into a business in which I could bring my father along. You see he has been a wood framer his whole life. So here I was with a college degree, either I could have gone and worked in the corporate world, or attempted to do something that me and my father could benefit from. Im glad I chose the latter, for my father would have been completely out of work. Their I go now ranting on forever. Anyhow you truly seem like the go to woman in this industry, and I am grateful to have you on the other side of the computer to listen...



Sincerely,


Carlos Rodarte, owner
RODA CONSTRUCTION