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Discussion Starter #1
Hi all,
Just joined the site, very informative stuff. I recently received a call from a property manager for HUD? The name of the company is green solution property services.

I figure it maybe a good opportunity with how slow new home sales have been. The rep or owner asked to take pictures and write up a price list of what needs to be done. The house is a mess and needs like $100,000 worth of work. I sent the pictures and the price which he really didn't have an issue with. It didn't seem like he would be bidding the job out he said if I want the work I can have it. That he basically wanted to use me because the rep and my work which he has seen. He wants and take measurements of the roof rooms etc. Are we wasting our time? or is this for real?
 
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JMJ54 said:
Hi all,
Just joined the site, very informative stuff. I recently received a call from a property manager for HUD? The name of the company is green solution property services.

I figure it maybe a good opportunity with how slow new home sales have been. The rep or owner asked to take pictures and write up a price list of what needs to be done. The house is a mess and needs like $100,000 worth of work. I sent the pictures and the price which he really didn't have an issue with. It didn't seem like he would be bidding the job out he said if I want the work I can have it. That he basically wanted to use me because the rep and my work which he has seen. He wants and take measurements of the roof rooms etc. Are we wasting our time? or is this for real?
Tell them you will be happy to bid this out. Cost is $250 for trip and time on the estimating software and is refundable upon bid approval.
Find out real fast who is BS'ing who? :whistling
 

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Be sure to collect a deposit up front and progress draws, with 10% retention on completion. Write that stipulation into your bid and find out if he's bs'ing you or not.

Chances are he'll want you to front the labor and materials. You'll risk everything if you do.

Are you sure the house is worth $100,000.00 in renovations?

Linda
 
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Discussion Starter #4
Well I already went out to the house and took like 65 pictures and wrote the estimate up. Like I said, he said we are getting the work and my estimate isn't unreasonable. He now just needs measurements . I would want a substantial down payment. I told the guy on the phone we our home builders and usually don't do small jobs like this. If I am not getting the work let me know right now because I don't care about $65 he was going to pay me to take the photos and write the bid. The house is a hud owned home
 

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Did you tell him you need a deposit up front. Or did he offer you one?

Lots of companies approve bids but not everyone pays. Cover yourself, just in case.

Check the company out real good. Put their name in "...." and look for complaints on the internet.

Linda
 

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I just tried to check them out on the internet. All I got was an "internal server error". Sure hope, for your sake, they're legit.

Linda
 

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Hmmmm. 1 short [1/4] page with a phone number. No info about who they are and what services they provide, nothing.

Linda
 
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Discussion Starter #9
yeah I called the number it works and seems legit. The website however, seems to require a login. He had me post the photos on photo bucket. There were photos posted of various other homes around the country. The guy said he worked with hud and handles properties in all 50 states and that he is going to be doing a lot of work in my state.
 

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Photobucket has its own login. I didn't see one on his site.

I gotta run but let us know how it goes. Wish you the best.

Linda
 
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Discussion Starter #11
JMJ,
Are you trying to say that you have the approval?
If so then I misinterpreted what your previous post was. If you are being told "you will get the work" than take that with a grain of salt. That is a common saying to sucker someone to waste the time taking pictures and bidding out the rebuild.
I gotta say we have done many $100k renovations on Bank Owned properties and ALWAYS make sure you have the work authorizations signed. WE GET 40% upfront upon approval with agreements that is for 2 weeks labor and all materials on bid paid for up front. AFter the materials and initial labor fee paid we will begin work. At the halfway point we get an additional 40% with 20% paid upon completion.

I know these are steep draws on normal projects but you are not working with "normal" people...you will be working with "SHARKS" and they are always on a feeding frenzie!!!! AND you are bait. :(
 
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Discussion Starter #12
Freemont,
So your gut tells you this guy is a scammer? He said he wants me to do the work. Is there a difference between that and an approval? He makes it sound as though he is not taking other bids, that I am the sole person he called to do the work.

We have been in business since the 1970s and would never do with out taking a substantial downpayment and receiving payments as work is completed. I am just not familiar with this reo stuff. I just don't want to complete the measurments if this is a scam.
 

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FremontREO said:
JMJ,
Are you trying to say that you have the approval?
If so then I misinterpreted what your previous post was. If you are being told "you will get the work" than take that with a grain of salt. That is a common saying to sucker someone to waste the time taking pictures and bidding out the rebuild.
I gotta say we have done many $100k renovations on Bank Owned properties and ALWAYS make sure you have the work authorizations signed. WE GET 40% upfront upon approval with agreements that is for 2 weeks labor and all materials on bid paid for up front. AFter the materials and initial labor fee paid we will begin work. At the halfway point we get an additional 40% with 20% paid upon completion.

I know these are steep draws on normal projects but you are not working with "normal" people...you will be working with "SHARKS" and they are always on a feeding frenzie!!!! AND you are bait. :(







I wouldn't sign any lien wavers either!
 

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JMJ54 said:
Freemont,
So your gut tells you this guy is a scammer? He said he wants me to do the work. Is there a difference between that and an approval? He makes it sound as though he is not taking other bids, that I am the sole person he called to do the work.

We have been in business since the 1970s and would never do with out taking a substantial downpayment and receiving payments as work is completed. I am just not familiar with this reo stuff. I just don't want to complete the measurments if this is a scam.



One thing you'll soon learn is that there is massive amounts of BS in the industry.
Don't take his word for "bid approval". Get it in writing. Until you have it in writing its all talk.
Take the claim about you being the sole bidder.
I wouldn't hold my breath. It wouldn't be the first time that contractors got
scammed into thinking they could bid it how they want. He'll get two "sole
bids" and then go to his favorite low baller and say if you can beat this I'll give you the work.

On the other hand the outfit might be 100% legit. The reason so many of us are so skeptical is that stranger things have happened.
 
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Discussion Starter #15
JMJ54 said:
Freemont,
So your gut tells you this guy is a scammer? He said he wants me to do the work. Is there a difference between that and an approval? He makes it sound as though he is not taking other bids, that I am the sole person he called to do the work.

We have been in business since the 1970s and would never do with out taking a substantial downpayment and receiving payments as work is completed. I am just not familiar with this reo stuff. I just don't want to complete the measurments if this is a scam.
OK Understand your confusion after reading the posts from all us P&P contractors but rebuilds are a lot different than the normal P&P work.
Treat the "job" as you would treat a normal paying private/commercial project that you would anyother day.

1) Get the work authorizations signed
2) Get the Draw Schedules signed
3) Make sure the W.A. spells out what is required of You and the General Contractor (since they are hiring you they technically are the GC on the project).
4) Make sure (as BPWY stated) that you don't sign ANYTHING that takes away your lien rights if something goes awry.
5) NO Waiver of Subrogation
6) Without knowing the scope of work the one catch I would check on is who is paying for "change orders" for the unknown that we run into once the job begins. If the W.A. does not spell out the Change Order specifications the G.C. will say the "job was approved at X$$ and we cannot change the amount of the approval without rebidding or you will be responsible". (this is the biggest catch on these P&P properties so we bid UP 30% over the actual estimated cost to cover the unknowns).

KNOWN FACTS:

1) there will ALWAYS be multiple bids on any HUD properties

2) Most of the HUD homes are still being sold "as is". They take your blood/sweat/tears spending considerable time doing a detailed bid and sell the home minus your bid amount. You get nothing unless you charge for the bid.

3) IF your gut is telling you this is a scam???? I learned a long time ago to trust my gut feeling :eek:
 
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Discussion Starter #16
I agree with Freemont REO. I wouldnt assume this is a scam just on this so far. Infact, I dont see the big deal on doing the measurements for free if your not overly busy.

People use the word HUD loosely. They sometimes just mean a home is a HUD home because its foreclosed. This could be a 203k loan which would be sweet.

If you do the measurements, get the job, your not spending a dime until you get something up front.

Not that bad. Your in construction, who hasnt given out free bids. Your not going to get every one of them.
 
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Discussion Starter #17
Green Solutions Property Services

i noticed this discussion. I thought I would chime in here about this company. They do work all around the country. They do pay their subs promptly. They usually pay 50% of labor up front, and all materials during the job. Final payouts are generally 15 days after completion. I would suggest, if you find this situation in the future, simply ask for references of others the company paid. I know this company could and would provide you with lots of this info.

On another note; when the company gets a spec from a contractor, they come back to that contractor for the work when it is awarded. They rarely get more than one bid because they are professionals that know general values.

I know all this well as I am the CEO of Green Solutions Property Services.
 
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Discussion Starter #18
pd606 said:
I know all this well as I am the CEO of Green Solutions Property Services.
No offense meant, but is your company, the company that this discussion is about?

I see nothing that mentions a client name in this thread.

If your the owner, your giving yourself a positive reference? Or your a vendor for them, and giving them a positive reference?

This is your website?
http://www.greenpropertysolutions.com/
 
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Discussion Starter #19
Any other contact info?

We did work for this company and never received payment. Now when I call the reps number the person who answers says I have the wrong number. Do you have any contact info? I hate to involve the homeowner but I may not have any other choice.
 
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Discussion Starter #20
So JMJ54 where did you end up with this?

Just wondering how this ended up with you? Did you do the bidding, did you get any work or where they using you to get estimates for bank. I recently got a call but just seems like they are more interested in getting estimates that doing the work. Thanks.
 
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