HUD And REO Property Preservation

oteroproperties

I think the banks are gonna send it to the bean counters which are more then likely gonna tell them to work loan mods a little harder on home pre 1978

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

FremontREO

Hey I agree its nonsense! But your last paragraph is only part right:

"He did a little research, and with the lead based paint report in hand you can hire a regular painter and have the test re done after the paint is completed, to make sure it was remediated. (the test runs at about $500). All this is not a must though, if you want to rent it...you still can ...but at this point you would disclose there is lead base paint at the house. To sell it...it's the same...you would have to disclose it."

The painter would have to be a certified lead renovator, test and if lead found then containment zones would need built and wipe tests have to be completed. This isn't going to be cheap either...

Yep you can sure rent that home out and/or sell it with the opt out form signed and disclosed BUT now the seller is liable for the future claims..(If any) and after going to continuing education classes from IA/NE and TN there is only 1 agreement between 3 different locations: this is going to be anothers Lawyers Dream!
I just don't see the banks signing off on the "opt out" form and face uncertain risks? I sure wouldn't but then again its "my" assets I'm protecting vs the service companies don't seem to care.

FremontREO

Exactly whats going to happen when everyone starts sending in the RRP and opt out form to the service company...
Thing is: IF you know its pre-1978 and the contractor does not send in the form then IS the contractor going to be held potentially liable for NOT knowing better and the contractor is the "expert" in the field that is suppose to know the laws.....

BPWY

According to what I dug up in researching it a simple paint over project has no worries. Where the lead issue comes up is when 6 sq ft or more is disturbed on the interior and/or 20 sq ft on the exterior and windows replaced then the testing and remediation kicks in. But a simple paint over is not included.

Is your licensing info telling you different than that?
If so then we've got a conflict on who has the right info.

FremontREO

OK its just like all the instructors will say "CYA" and in a pre1978 home there is no "simple paintover" anywhere I can find in the regulations. For P&P contractors it is the definition of "maintanence" that creates the disturbance of dust (pg 2 of Renovating, Repairing or Painting). Our instructors all said that if you are cleaning such as wiping down windowsills for a initial clean on a workorder then you have to do the RRP forms to the owner of the home (ie service company/bank) due to the dust measures that have to be maintained since you are a contractor and not the homeowner. They actually had a ton of issues that we deal with everyday but its been quite a while since I went to this school....
You are right on 6sf for "minor repair and maintenance activities for painting under rule 745.83 (a) (3) but as they say "this rule is open to interpretation" and why take the risk.
Environmental companies that I work with all are "salivating" since the day of bleach treating and kilz covering any moldy area on a pre-1978 home will be over (if done correctly) but heck that doesn't work anyway but that is what the banks/service companies tell the contractor to do....
As the rule says its not for just painting:Its for: Renovations, Repairs AND Painting 40 CFR Part 745.

FremontREO

Oh I forgot to add that there probably is another "rule" that changes everything else to something else for maybe doing this and maybe doing that.....
Kinda maybe

mtmtnman

You know what really cracks me up? HUD can convey with mold without any liability if it is disclosed but it seems like lead is a whole nuther ballgame. What is worse?? Mold or lead???

BPWY

Sounds like intentional confusion and misdirection on the part of the gooberment. Makes collecting tax money easier.

Kinda like the DOT with truck driving regs. You could line up 10 DOT cops in a room and ask them all an identical question word for word and chances are VERY good you'll 10 different answers.... some of which will be very different.

And to think I thought I left all that confusion behind. lol

FremontREO

Wow thats weighted. I would have to say mold but...the body can "process" mold faster than lead so thats a hard one. Lead in children can leave a lifetime effect (learning disablilities and others) but so can mold according to studies (asthma and lung problems).
I have been seeing a lot of reconveyed properties that the service company did not do the mold remediation correctly and now the banks are having to do the job right before conveying and they must pass the indoor air quality tests. Guess who is paying to do the remediation correctly? Yep the first contractor who did it the way the service company told them. I have mixed feelings on the service company telling you "how to do the work" then sending a claim on your insurance policy to have your work done correctly....

Heres the problem in a nutshell: The service companies want the contractor to "do the work" in a certain way even if they KNOW it will damage the house worse BUT down the road if theres a problem because of the work the service company then blames the contractor for not doing it right....Thats called "having your cake and eating it too"
So in my opinion just bid the job to be done correctly and bid it how they want it done and if they don't want to approve it to be done correctly than that is up to them but at least you told them how it should be. I suppose this will open another can of worms since if you go ahead and do it the incorrect way then you would still be liable...

fuzzywuzzy

I read this thread to research a strange phenomenon I have encountered recently, as well a see if things in REO are as bad as I hear.

First, thank you, thank you, thank you!! By flooding into the PP and REO market, you folks have collectively pumped my margins back up to about 2004 levels. People running around for $20 and $30 dollars has left a hole in the market, and non-ESL, non-smoking handymen can write their own check, just to show up.

Now don't get sanctimonious on me, I actually have a general contractors license, but I started a service/handyman company, and the margins are 5 time what I could generate with competitive new build.

Not meant to be snarky, I just want to say thanks!

oteroproperties

We do preservation work here in Tampa, FL and have been for quite some time. there are alot of new guys (mostly out of work contractors) that jumped into it in the passed couple years. most think they can change the game by staging preservation strikes for higher wages. but there are some of us that have been in the business long before most even knew it was a profession and will be here long after the REO/P&P phase dies out. don't get me wrong things are changing and it is bad for most. especially those in the more rural areas, but if this is your chosen business you have to take the good with the bad.

in my opinion, I think the handyman thing is quite underrated here in florida. I am among other things a licensed electritian and when i was working for a company i did ALOT of side work on new construction purchases (most home owners migrating from the north). it seemed like the people from the northern states all asked me the same question. "do you know of any good handymen around here?" in Florida the majority of the houses in the bigger cities are new or at least newer so the need for handymen is there but not as pronounced. most home owners would troll the construction sites (mostly their own new neighborhoods) and find a capable person for their project.

I think as long as you do a good lob, show up, on time, and can speak with some respect you will do well as a handyman. As i said i use to do a lot of side work, and i had so many repeat/referal customers that i was able to quit my job, get my masters and start doing service legit. theres still a lack of handymen here though so we find ourselves hanging pictures, installing chair rail, painting walls, rehanging doors, hanging tv's etc. thats actually what got me into rehabbing. Now my brother runs the service company and I am continuing with preservation and property maintenance.

anyway welcome and good luck. Get that money while you can, this REO thing is not going to last for ever so you might see your old margins sooner then you would like!!

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

SLSTech

Lead per the EPA, HUD, etc... (but yet you can still buy it and use it for flashing )

Only certain types of mold are dangerous & generally rare

The EPA doesn't even have limits on mold growth, approved testing or anything --- http://epa.gov/mold/ from the FAQ section

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BPWY

Any one here using the Motorola Droid?

I need to know if I can take photos with my digital camera and then transfer them to the droid for emailing.

I'm up for a new air card on the unreliable laptop, I'm up for a phone upgrade with an extra $50 savings if used by the end of this month on the droid. IF the droid will do what I need I'll save $30 a month on the data charges. I just can't risk this much money on an item that won't do what I need to do.

Thanks.

mtmtnman

Advice on boarding hot tubs. Attached below is a photo of a board job i did last summer that Wells Cargo had no issue paying me for. I have done a couple others for other banks the same way without issue. Bank of America on the other hand want's padlocks on the cover. Anyone got any pics on how to padlock one down without ruining the hot tub?? Also, screws into 1/2 inch plywood will rip right out with padlock and hasp setup. I feel chaining the lid down is a lot more secure. I run the screws in right where the cover latch would normally attach with large washers to secure the chain.

Attached Thumbnails

 

FremontREO

Yep I have the Motorola Droid but I have never tried to transfer pics to the phone but I do snap pics and send them on sometimes. I'll try it in "your neck of the woods" on Thursday to see if the droid will work "out there". LOL
I find where I can get online with my laptop and air card I can't always get online with the phone. Don't ask me why?

mtmtnman

Same here. Seems the aircard picks up on AT&T towers where the phone won't..................

BPWY

I see that too. Even when I was driving truck.

Full signal on the phone. Nada on the aircard. Occasionally the other way around.

FremontREO

I think its what provider you have. My aircard from verizon is the old version that is unlimited usage and isn't offered anylonger and I can pickup everything when others can't get service. The phone is spotty and really slow unless by the Cities--still works but extremely slow.
Also, BTW that hottub secure is the first I've seen done like that. It seems that anymore they tell us only to drain the dang thing and remove...wanna buy a hottub? LOL

BPWY

You got any good ones??? If so throw that puppy on with your snow machines.

When you get here we'll dicker on a price. ROFLMAO

I'll be able to get it real cheap that way, it'll be in your way and a major pain to work around.

FremontREO

I woulda brought it along for a sled! Dang that would be a blast--an 8 personal four sided sled "with jets!"...
We don't see many tubs here since nobody can afford one! And when we do they are junk.
Man I'll PM you later and tell you a horror story today if your around?