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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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

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

    Wade, Thats a great idea! Something to look into. As I mentioned at the start, very few people know about the business and even fewer are willing to share information.
    I'm sure that would be a great venture.

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

    Just wanted to give a quick update. We have been very very busy trying to pull everything together for the upcoming project such as creating a operations model, creating a pay scale, creating a budget, creating rules and regulations for our sub-contractors, trying to find qualified sub-contractors to hire and the list goes on and on and on!!!!

    A couple of weeks ago we received our assignment of houses and while we asked for a work load of about 70 houses a month, due to the lack of qualified contractors we were asked to handle close to 300 houses PER MONTH!!!!!!! CAN YOU IMAGINE OUR SURPRISE???

    Due to the fact that the pay period is on a monthly schedule and they have up to 45 days to pay the contractor this presents a problem for us in the form of operating cost such as supplies and payroll so we are currently searching for a financial investor to share in the rewards!!!

    WISH US LUCK!!!!!
    We would hate to turn down such a wonderful opportunity!!!!

    Will keep everyone posted!!!!

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

    OH I almost forgot.
    We start work on Jan.11!!!!!

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

    A quick update on our progress of the property preservation business. Prior to being involved in the business I could not find adequate information on the subject but now that Im involved there seems to be an overflow. If this is a business that you would like to become involved in please take your time and do your due diligence on every company that you try and work for. We have been "lucky" in the since that so far we haven't experienced any real issues.

    On the other hand we along with the Georgia Dept. of Labor held a job recruitment for 20 job openings which started at 10am. When we arrived at 9:30 there were more than 200 people waiting to be interviewed. You read the unemployment statistics but until you see the effects of the economy for yourself you really have no idea!!!!

  • Investor · Rochester, NY · Member since 2009 · 10 posts · 6 votes
    16y

    It's great that you were able to find a good fit though BP. I have recently joined and am very excited about all the info that is here and that maybe I can help someone else do what I have been sucessful in doing. (Buying and fixing low priced homes for DSS and Sec 8 tenants.) If there is anyone out there who is looking to get involved in RE for relatively little cash I may be able to help. I buy in the Rochester, NY area for very little $ and within a short time have made the cash back. Just put an offer in for a property for 4k that has been accecpted! This is a great time for some of us.

  • Real Estate Investor · Carlsbad, CA · Member since 2009 · 151 posts · 17 votes
    16y

    Great Job Ty! So nice to read a happy story. Hard work does pay off in the long run and I agree BP members are a great bunch of people! As busy flippers we would be able to utilize an operation like yours. Once you get settled in and catch your breath, you could create another win/win with a business model not only for asset preservation (which we utilized them MDA here in CA on Ocwen REOs), but also for Investors that flip and do not have the time to babysit projects... could use a smart, go-getter team like yours. Make sure you take care of yourself, RE business tends to get you to burn the candle at both ends (its so much fun), but can take its toll! Best Wishes, -- Dawn

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

    Lynn- Thanks. Im sure you will profit in many ways from your membership @ BP and you are right this is a GREAT time to be involved in real estate.

    Dawn- I would love the opportunity to work with you in any way possible.Also I have a few young ones that make SURE I remember whats really important in the grand scheme of things and not work myself to death.

  • Developer · Staten Island, NY · Member since 2009 · 88 posts · 9 votes
    16y

    sounds awesome!

  • Flipper/Rehabber · cincinnati, OH · Member since 2009 · 211 posts · 59 votes
    16y

    Just a shout out to My Man Ty! I reached out to him because of this thread..we have been considering doing something similar in Cincinnati. He took the time to call me and explain what he know as well as provide me with some invaluable resources..we will be considering looking at a JV in the future! Thanks again Ty!

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

    Steve, You are very very welcome. One of the most valuable lessons I have learned since joining BP is that there are more than enough opportunities to go around. Many BP members have given me priceless information so I have no problem sharing the little I know.

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