I recently read in a magazine that one of the top 10 jobs in the real estate market was to fix up houses that banks owned as REOs. Do banks do any fixing up of houses that they repo? And if they do, how would I go about contacting the person in charge. My company frames new houses but we want to get into the remodeling business also during the winter time when new house startups are slow. Any information will be helpful. Thank you in advance!
It mostly up keep work. mowing grass -so they dont get fines by the city and such.
banks dont remodel houses.
Over the past couple of months I have been to several REOs and it was very clear that the banks were not putting any work into those houses.
I eventually put one under contract and I am waiting to close in the beginning of next month. I was over the property this past weekend and I met one of the neighboors. He told me that after the previous owner left, the bank sent people to clean the house (basically take all the furniture and stuff the previous owner had left behind). He also told me that those folks took down the palm tree in the front yard and all the grass (I guess they didn’t want to deal with the maintenance of the grass/trees and were probably worried with the liability of having a tree falling on someone). So it seems that they did the minimum to clean the place once, but no fix up work.
The funny thing is that this neighbor told me that the folks from the bank let him pick whatever he wanted. He ended up keeping a bicycle and some furniture. I guess that meant less work for the clean-up crew. I almost told him that now that I am buying the place I would appreciate he returning those items… :O) I wanted to see the look in his face… :O)
Good luck!
It sounds like your on the west coast with palm trees and such :cool Well, to answer your first question about getting with the banks to do repairs: You need to get to know the agent that is selling the properties. They are the ones that pick the contractors. I know because this is what I do and we need lots of contractors! If your in the Manassas, VA area then let me know, we are always looking for good contractors that have good communication and are willing to give free bids. kevinbailey@kw.com
Hi TrustedRenoandProps,
I have a couple of suggestions you may want to consider to work (rehab) REO properties. Sounds like a plan to cushion yourselves during construction slowdown (smart idea!).
-
Contact REO sales brokers in your area, google REO Brokers in (your city, state) etc. or contact local REI club, etc. They oftentimes are contracted with the lender to rehab or make-ready properties which have been neglected striped etc. My only thought is in this market, most properties are going “as is”.
-
You may want to get a contact list of REO Lenders (Asset Managers and REO Departments) and send them a letter. Possibly you may find yourself on a list for properties that MUST be rehabed.?? A good source for REO asset managers that I use is the Lane Guide http://www.laneguide.com Here’s why you may be onto something here… if the REO is inhabited like a multi-unit, or has been sited by Code Enforcement, the Lender will be notified with a Demand letter to repair the property – your name may just be pulled out of the drawer!
:beer Good Luck!