curious in property preservation

7765 Views 15 Replies 1 Participant Last post by rselectric1, Mar 8, 2010

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Discussion Starter · Nov 21, 2008

Hello- I have been exposed to some information on property preservation on foreclosures and it sounds too good to be true.:w00t: Is anybody out there dealing in this type of business that could give me some pros and cons on this type of work? Im thinking about adding another division to my rehabbing business.

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Discussion Starter · #2 · Nov 23, 2008

I have been working this area for the past two years. I cant say it has been a great deal, but it is keeping us afloat. Dont be alarmed if they want you to sign a Waiver of Lien BEFORE you even start the job! So far, I have always been paid. Expect it to take 30 to 60 days, and they WILL NOT make progress payments.

Many of these properties have been so badly maintained, they can dump $10k into a house, and you don't even think you have done anything.

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Discussion Starter · #3 · Nov 24, 2008

Thanks for responding 5 star,
Now if I were to get into this type of biz, how exactly or where do I start? I've read of people going to the HUD website or working through Safegaurd. Got any suggestions?? How did you start?? Any money up front??

Jason:thumbsup:

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Discussion Starter · #4 · Dec 5, 2008

Our company has been doing P&P about 10 years, we currently work through safeguard. There is great money to be made, but it's very different from re-habbing. No real aesthetic work goign on. Star is right, it pays 30-60 days out and it takes a heft of money and determination to get started. Definitely not gonna get you rich overnight.

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Discussion Starter · #5 · Dec 5, 2008

If you sign a wavier of lien before you are paid, much less start the job, you are a fool. May as well take your payroll and bet on college football.

G

Discussion Starter · #6 · Dec 5, 2008

Take Oklahoma and the points with your payroll this week in the big 12 championship. Just don't bet with two weeks of your company's payroll monies...that would be irresponsible!

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Discussion Starter · #7 · Dec 7, 2008

Thanks everybody for the input-
Now, I keep finding out that I need liability ins. and o e ins., are there ways around this? I'm looking to just get my foot in the door in the p&p biz to accumulate some money then get all the ins needed. Is this possible? Or just stupid?

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Discussion Starter · #8 · Dec 7, 2008

ja-builder said:
Thanks everybody for the input-
Now, I keep finding out that I need liability ins. and o e ins., are there ways around this? I'm looking to just get my foot in the door in the p&p biz to accumulate some money then get all the ins needed. Is this possible? Or just stupid?

Let me see if I understand you: You want to accumulate money from doing jobs that pay 30 to 60 days after completion, to buy insurance you need before you can do the work so you can accumulate the money? How are you going to finance these jobs for 30 to 60 days if you don't even have the money for insurance?

Instead of trying to find ways around doing things legitimately, try doing it the way the pros do. Get things lined up properly and be a legitimate businessman. It's so much easier that way.

G

Discussion Starter · #9 · Dec 7, 2008

Dont be alarmed if they want you to sign a Waiver of Lien BEFORE you even start the job!

Never been asked to sign one, NEVER will sign.:no::no:

Expect it to take 30 to 60 days, and they WILL NOT make progress payments.

30-60 days??? Not here. I get paid upon completion. :thumbsup:

G

Discussion Starter · #10 · Dec 8, 2008

hey brickie-
thanks for the reply. do you work on your own then? how is it you get paid earlier then others and have no liens to sign? these might be dumbs questions but Im new to this business (p&p).
thanks-
J

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Discussion Starter · #11 · Dec 8, 2008

ja-builder said:
hey brickie-
thanks for the reply. do you work on your own then? how is it you get paid earlier then others and have no liens to sign? these might be dumbs questions but Im new to this business (p&p).
thanks-
J

Ja,

It's quite simple:

I have a blurb in my contracts that state something to the effect of:

"Payment is due at the time of completion of services rendered"

If anyone balks at the terms, I tell them to go hire someone else. I'm in the construction business NOT the finance/banking business. Oh yeah, I also don't do business with Safeguard.:no::no:

G

Discussion Starter · #12 · Dec 8, 2008

ja-builder said:
hey brickie-
thanks for the reply. do you work on your own then? how is it you get paid earlier then others and have no liens to sign? these might be dumbs questions but Im new to this business (p&p).
thanks-
J

Apparently, you're new to business in general since you complained about a $1.00 raise from your boss

Believe it or not, we contractors aren't as dumb as you look :w00t:

G

Discussion Starter · #13 · Dec 8, 2008

DecksEtc said:
Apparently, you're new to business in general since you complained about a $1.00 raise from your boss

Believe it or not, we contractors aren't as dumb as you look :w00t:

:thumbup:Yup, I know! And thats why I work in this industry, to learn from some of the best and the worst. All the experiences will make me a little smarter than the next. Most contractors know the ins and outs of cutting corners, in every aspect of business. And now Im along for the whole ride, just show me the ropes to being a better contractor than the last failure.:thumbup:
Thanks
J:thumbsup:

G

Discussion Starter · #14 · Mar 8, 2010

your gonna need about 10 grand to get started :shutup:

G

Discussion Starter · #15 · Mar 8, 2010

Wow, another old thread

rselectric1

· #16 · Mar 8, 2010

Brickie said:
Wow, another old thread

Yep

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