HUD And REO Property Preservation

C.M.J.

I just finished reading this entire thread and am very thankful for the information and knowledge shared. I've shown this to my two business partners to give them an idea of what we have to look forward to by getting into the Property Preservation arena. We are a start-up company and looking forward to the future. I have to admit I'm a little apprehensive as to whether or not we're making the right move. It sounds like there is some tumoil to deal with in PP.

I just wanted to give a big thanks to some of the posters on this thread.
Specifically:

Linda Hall
BPWY
mtmtnman
FremontREO
oteroproperties

I really appreciate all of your insights. It's invaluable information.


Bret

__________________
C.M.J. Residential Services llc.
Interior/Exterior Remodeling
Hardwood and Laminate flooring
Decks

gec field

c.m.j

wish you luck it a good business to be in at time

FremontREO

Half tongue in cheek but I hope 1 partner is a lawyer and the other partner is an insurance agent...
And you the good general contactor.
The other tongue in cheek is: it can be a very rewarding experience if you make sure to dot all "i's" and cross those "t's" and check it twice....
Everyone here is sure to help in your adventure.

gec field

you right

C.M.J.

FremontREO- Thanks. The i's and t's were the real eye opener in this thread. This is where the apprehension comes in. Although,the 3 of us come in with a history of getting screwed on a daily by those in charge. After something like that CYA becomes second nature. I just hope we learn what to use for the CYA material.

__________________
C.M.J. Residential Services llc.
Interior/Exterior Remodeling
Hardwood and Laminate flooring
Decks

BPWY

And then we have this little gem to worry about.

Government Considers Foreclosure Freeze

.


How many here will be put out of business thanks to this?

mtmtnman

Do these dumbazzes realize you CANNOT keep meddling with this stuff without dire consequences?????? If this happens the banks will shut down ALL monies available for loans as they will not have any to loan!!! While some people have real reasons they are late on payments about 75% of the pre-foreclosure inspections i am doing are on people that are over-toyed!! Average home but 2 new vehicles, a new camper, a Harley, atv's snowmobiles, boats Ect!! WQhere the hell are these peoples priorities??? I am covering 45,000 sq miles of my state in an 18 yr old pickup with 150,000 miles on it and these people think they need brand new rigs to go 20 miles to work??? In my dads generation these people would be the laughing stock of the community! Of course people had common sense and had there priorities in line then........................

Brickie

Not me. PP is only part of the services that we offer. Still, this would suck. How would this be legal???? What's next, you can't repo a vehicle because someone can't make the payments???

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“Ron Paul is one of the outstanding leaders fighting for a stronger national defense. As a former Air Force officer, he knows well the needs of our armed forces, and he always puts them first. We need to keep him fighting for our country.” – Ronald Reagan

mtmtnman

Believe me it would directly effect you as well. People are having a hard enough time getting $$$ for remodels Ect. without the gooberment pushing the banks around more. Not allowing them to unload bad debt will make them rob Peter to pay Paul and tighten up lending even more. The gooberment see's this as saving them $$$$ because Fannie, Freddie, VA Ect. are insured loans and when a house sells short the bank don't loose a dime. Think about it.......

Brickie

It will have an effect, but it won't put me out of business. It doesn't change the fact it would still suck no matter what.

__________________
“Ron Paul is one of the outstanding leaders fighting for a stronger national defense. As a former Air Force officer, he knows well the needs of our armed forces, and he always puts them first. We need to keep him fighting for our country.” – Ronald Reagan

mtmtnman

May i ask what else your involved with other than property pres. and remodeling/repairs that you consider safe if this goes down???

Brickie

Mtmtnman,

I'm looking at this possible news as just another moritorium. I'm going to do what I always have done during the various moritoriums that we've had.

I'm in the Chicagoland & NW Indiana area which happens to be the third largest market in the country. The results that I am having will be different than in your neck of the woods.


The overwhelming majority of people in this country are not facing foreclosure. These people will always need to have some type of repair work done on their properties. I currently have 12 weeks of work already booked with this group of people. Once the weather breaks, that # will increase. Even though it's still a WIP, if you go to our website it will give you an idea of just some of the services that we provide:

http://www.rammasonry.com/Home_Page.html


With regards to this HUD & REO thread:

I mainly deal with brokers & a few banks. They keep us busy with all the repair work. In addition, many communities around here are going after the banks to make sure their properties are properly maintained. In places like Gary, Indiana (aka "Board Up City") the vandals take their toll on properties. We're constantly being sent there to repair stuff.

The really good brokers also have their hands in all kinds of stuff like property management for all types of clients. These properties will need work done on them as well. We do get our share of work

__________________
“Ron Paul is one of the outstanding leaders fighting for a stronger national defense. As a former Air Force officer, he knows well the needs of our armed forces, and he always puts them first. We need to keep him fighting for our country.” – Ronald Reagan

Brickie

All I can say is follow the money.

In the urban areas short sales are perfect for if you want to be a slum landlord.

You buy the property really cheap & in short order it's turned into Section 8 Housing. Where does the $$$$ for Section 8 Housing come from?????

__________________
“Ron Paul is one of the outstanding leaders fighting for a stronger national defense. As a former Air Force officer, he knows well the needs of our armed forces, and he always puts them first. We need to keep him fighting for our country.” – Ronald Reagan

somewherein815

Hello all! Was reading this thread by mistake while looking for work. I have been working in P.P. for a little over 4 years. I want to wish all the new people starting up all the luck in the world.

I am always submitting bids of my own prices and they never come back at that price.
I know one thing, I'll be doing a initial on my own house if these bids don't start getting better.

BPWY

Safeguard gets another one.
The internet is full of stories like this. Once in a great while you'll find a contractor that they keep happy. They have to allow one success story to counter act the negative stories and to be used for their recruiting ads.
I won't work for them. Worked for their grass cut department in 09. I told the company I've been working for that I was not working for safeguard in 2010.

Whats happening with your bids is this. I run into the same thing.
You are subcontracting to another company that is contracting with Safeguard. Every body wants to make money and as the last guy at the end of the chain doing all the work they expect the world from you but do not want to pay you for that. There is very likely another contractor in your area working for safeguard and they are able to bid less than you and get the bids and make money because there isn't that level of discount that you have.


My best advice is to go be your own man. Get your own insurance and your own contacts.
Had I not done this last year when things started to slow down I would have already lost my house.
I started in March 09 and only worked for one company. Like your situation I was the low man on the pole with 2 levels of discount between me and the banks. By NOV it was obvious that they were not giving me the same level of dedication that I was giving them.
I went out and got my own insurance and started applying with every national and regional I could find. I'm slowly getting my name into the hands of the local brokers and agents. One day I'll be able to tell this company I've been working for goodbye. I make a heck of a lot more money when they aren't involved.

somewherein815

I would like to start my own company but it almost looks pointless. Seems like there is a lot more people doing this line of work now than there was 4 years ago. When I first started, I was covering all the N-NW Chicago burbs all the way back to Rockford, IL and there was plenty of work. Now its just the Rockford area and Northwestern IL.

It's frustrating.

mtmtnman

My old stomping grounds. I grew up there but never want to return. I have friends in that area that have attempted to get into P&P but have told me prices are so low it cannot be done to turn a profit. Good luck........

BPWY

I understand. And you've got this to worry about too.

I've already got insurance in place and have a lot of my own contacts. Its got me pretty worried.

C.M.J.

Earlier reading in this thread led me to believe that some contractors don't have the correct GL insurance for P&P. What is the correct insurance coverage? I would like some direction because I've got a meeting set up with my ins. agent on Friday to talk about errors & omitions ins. and to make sure I have the right coverage for GL.

__________________
C.M.J. Residential Services llc.
Interior/Exterior Remodeling
Hardwood and Laminate flooring
Decks

Brickie

For PP, E & O is a waste of $$$$

__________________
“Ron Paul is one of the outstanding leaders fighting for a stronger national defense. As a former Air Force officer, he knows well the needs of our armed forces, and he always puts them first. We need to keep him fighting for our country.” – Ronald Reagan