How We turned lemons into lemonade

How We turned lemons into lemonade

Atlanta, GA · Member since 2009 · 177 posts · 52 votes

Hello to All,
This is a success story only made possible by BiggerPockets. Recently I made a post about a finance program that Im a broker for here in Atlanta. I later was contacted by a young lady who also lived in the Atlanta area and wanted to learn more about investing and also to receive more info on the program. Once we looked at the situation we decided that this program was not a good fit for her. Needless to say we were both disappointed.

During our conversation there was mention of property preservation. Which we all know to be a very good business at this time. For those who dont know, property preservation is the business of cleaning,securing and maintaining foreclosed houses for the bank. At one time I sought information about the business but kept getting the runaround.So you can imagine my excitement when I found out that she had a contact with an asset manager who at the time were looking for contractors in the Atlanta area.

Since she had already began the application process we were able to join forces quickly and when we meet with the company rep he was very impressed with our organization especially the contractors, equipment and amount of knowledge we had concerning the fannie mae and HUD guidlines concerning property preservation. Keep in mind that these books were two inches thick. Everything went very well and we were invited to attend the industry meeting which will be in a few weeks.

So you see I am very thankful to BiggerPockets for making this relationship possible.

BTW- The company rep informed us that they are expecting around 4,000 properties in Georgia in the next few months. All which require preservation services. WOW!!!!

Thanks Josh!!!!!

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Most Popular Reply

Hard Money Lender · Atlanta, GA · Member since 2008 · 60 posts · 15 votes
16y

Hey Ty,

Congratulations!

I saw an article in the AJC a while ago where property preservation contractors were really cleaning up (literally).

I would think that you would also have the inside track on purchasing some of these REO properties.

See this reply in the discussion

35 Replies

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  • Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    16y

    Woooohoooo!!

    Way to go Ty, you should be very proud of yourself in realizing the opportunity when it knocked. Good for you.

  • Atlanta, GA · Member since 2009 · 177 posts · 52 votes
    16y

    Thanks Nick,
    That means alot. Looking at several ways to make money is the only way to survive.

  • Real Estate Investor · Kahuku, HI · Member since 2009 · 148 posts · 25 votes
    16y

    Nice. Keep up the good work!

  • Real Estate Investor · Lanaster, PA · Member since 2009 · 16 posts · 0 votes
    16y

    That's great - Congratulations - I hope you make lots of money!

  • Real Estate Investor · Portland, OR · Member since 2009 · 660 posts · 244 votes
    16y

    Amen to that ... congrats Ty! :idea:

  • Atlanta, GA · Member since 2009 · 177 posts · 52 votes
    16y

    Jose,Ted and Maria thanks for your comments. This is a new area of business and we see the potential to make alot of money.

  • Hard Money Lender · Atlanta, GA · Member since 2008 · 60 posts · 15 votes
    16y

    Hey Ty,

    Congratulations!

    I saw an article in the AJC a while ago where property preservation contractors were really cleaning up (literally).

    I would think that you would also have the inside track on purchasing some of these REO properties.

  • Investor / Agent · NY, NY · Member since 2009 · 97 posts · 20 votes
    16y

    Ty great job man! It just goes to show that you have to keep on "Failing Forward" (great book btw) because success will eventaully show up. This kind of stuff is inspirational.

    Thanks for putting a little more gas in my tank of motivation.

  • Atlanta, GA · Member since 2009 · 177 posts · 52 votes
    16y

    Wade- You are right there is the potential to make plenty of money and great minds think alike when it comes to getting "first dibs" on the REOs but we have to first make sure that there is no conflict of interest.Which I dont think there should be but we want to play it safe.

    Andre- Glad I can help. I would like to read that book. Who is the author?
    I guarantee if you stay active on BiggerPockets you will be very very happy!!!!

  • Hard Money Lender · Atlanta, GA · Member since 2008 · 60 posts · 15 votes
    16y

    Ty,

    If you're worried about a potential conflict of interest, you can always give me a call. I'm looking for good deals on REOs. :wink:

  • Investor / Agent · NY, NY · Member since 2009 · 97 posts · 20 votes
    16y

    Ty the author of the book is John Maxwell.

  • Real Estate Investor · Atlanta, GA · Member since 2009 · 8 posts · 2 votes
    16y

    I am the lady that Ty mentions in this post. Just wanted to comment that Ty has stepped in and shown great leadership and management skills. It seems as though the process in getting started in this venture has literally fast forwarded at such a rapid pace, I can hardly keep up.

    I am super excited and very confident with the new joint venture. This site has really shown itself to have many honest and ethical members.

  • Wholesaler · Baton Rouge, LA · Member since 2008 · 471 posts · 98 votes
    16y

    Ty, Can you give me more details about the property preservation business. This is the 1st time I've heard of it and it sounds interesting.

  • Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    16y

    Congratulations to you too Pamela!

    We all love success stories, they're what keep us going. Seeing other succeed always inspires me to keep doing great things myself.

    Be sure to find the time to keep us posted on your continued success!

  • Real Estate Investor · Atlanta, GA · Member since 2009 · 8 posts · 2 votes
    16y

    Robert, the property preservation business involves working with asset managers to get foreclosed properties back to conveyance condition. The property has to be cleaned out, yard maintained, itmes fixed (windows, etc).The broker can then list and show the property.

  • Atlanta, GA · Member since 2009 · 177 posts · 52 votes
    16y

    Robert, As Pamela mentioned its basically getting the properties back to a condition in which the banks can sell them. There is a website in which you can learn more about the business.

    www.cubicyard.us

    Also there are internet groups that you can join and learn plenty of info. Try doing a google search for property preservation contractors in your state and contact them directly to work as a sub-contractor. There IS a need for contractors.

    Hope this helps.

  • Real Estate Investor · Las Vegas, NV · Member since 2009 · 180 posts · 8 votes
    16y

    I'm deployed now and looking at starting the business when I get home, I live in Milwaukee WI. Milwaukee and Atlanta have an equal PERCENTAGE compared to total housing (est). I'll difenately tak e a look at that website you displayed.

    what type of insurances do you have and would you be willing to give estimates on how much these insurances cost?

    Thanks in advance,

    tony

    congrats Ty

  • Real Estate Investor · Las Vegas, NV · Member since 2009 · 180 posts · 8 votes
    16y

    mistake in last post, I meant an equal percentage of REO properties

  • Real Estate Investor · Atlanta, GA · Member since 2009 · 8 posts · 2 votes
    16y

    Hi Anthony, most of the asset management companies look for you to be insured with general liability insurance, errors & omissions and workers compensation with limits of liability $1,000,000. I know it seems like a lot to obtain, but I'm confident that the work is out there. Additionally, you want to make sure you are covered in this line of work. In the event someone is injured or if somethings gets destroyed on these properties, it's not the kind of exposure you want to have.

    Try Insurance Tek, Inc. at 888 505-1555. This company specifically insures the mortgage sevices and property preservation industry.

  • Real Estate Investor · Atlanta, GA · Member since 2009 · 8 posts · 2 votes
    16y

    I meant to add that the liability/error omissions is about $1930.00 a year and workers comp will depend on number of "employees" (even if they are independent contractors) with 3 on policy it's $1115.00 premium.

  • Real Estate Investor · Las Vegas, NV · Member since 2009 · 180 posts · 8 votes
    16y

    thank you, do you have estimates as to what these insurances will cost me? I'm overseas and looking at starting this business when I get home. I'm in the process of putting together a plan, and I'm looking at what my expenses will be.
    calling the company isnt possible for me right now.

    thank you for the informations

  • Real Estate Investor · Las Vegas, NV · Member since 2009 · 180 posts · 8 votes
    16y

    workers comp is that a month or yearly

  • Real Estate Investor · Atlanta, GA · Member since 2009 · 8 posts · 2 votes
    16y

    Well we typically call a "premium" the amount paid for insurance for the year. Based on what I have posted, the total costs for insurance which includes 3 employees covered on workers comp is a little over $3,000 a year.

  • Hard Money Lender · Atlanta, GA · Member since 2008 · 60 posts · 15 votes
    16y

    Ty and Pamela,

    Lot of interest in your property preservation business model. Maybe you should franchise your concept. :)

  • Real Estate Investor · Las Vegas, NV · Member since 2009 · 180 posts · 8 votes
    16y

    thanks for the input now I got to work on securing some contracts, I'm still overseas though I have time

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