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REO repair ...?

2637 Views 4 Replies 2 Participants Last post by  Craigslist Hack
REOs, Real Estate Owned, Bank Owned

Anyone doing repair contracts on these?

Ive heard good (maybe BS) and Bad(no money to be made) about REO repair, trashouts etc

Ive been researching trying to find out about the need for general contractors to fix up these destressed bank owned properties.

EDIT: I see there is a old thread about this, Kinda skimmed it..

Is REO repair worth pursueing and who do you contact to Bid, R.E. brokers what Banks????

I talked to a guy that has a REO repair web site here local , So Calif, and he said he got out of it, no money to be made. Ive talked to a few Real estate people and mostly get either negativity or the agent BS because they dont have a clue

Any help or advice for about getting into doing REO repairs ?

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I know a guy that checked into some of the requests he got and every body wanted him to wait a minimum of 90 days for any payments.
This meant he had to finance their entire job for a minimum of 90 days.

It doesn't take a rocket scientist to figure out how many ways a contractor could get screwed over.
90 days, screw that. Then they get a mechanics lein on there REO property. Ill bet they make you sign something stateing you cant lien the prop too.

I was waiting 30- 90 days on inspection labs to pay for my special inspection invoices, on little $120-$240 jobs and refuse to pay travel time even 2 hr to the job site. Doesnt even cover my fuel cost, make more money working at taco bell. Needless to say, I wont do it any more. Only one company Ill sub to now, pays with in a week of my mailed invoice
From our experience, the banks already have brokers for the repair side, we cover the state of ohio with one of these brokers. They send us out a list of 3-5 properties a month, they must be bid and submitted within 24 hours, they usually are approved within hours of submittal. (They must be started within 24 hours of approval)You have to have a very wide range of repair experience within your business to tackle these , no room for picking and choosing which part of the job you want to work on, its all or nothing. Plumbing, electrical, plaster and drywall, carpentry, painting, tile, carpet and down the list! Saves them time and they get a completed property to relist.
Payments for us have been 30% down and 70% within 14 days of invoice, has worked well for them and us.
The hard part would be finding a broker for your state,(ours is in WI) the broker who uses us contacted us direct.
We are looking for someone in Indiana any help would be appreciated.:thumbup:
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