Real estate owned properties or REO properties are the houses that have fallen under the ownership of a mortgage lender or investor after the property owner has failed to make the principal and/or interest payments on a loan. Such properties may be found through websites and auctions, REO banks, and real estate brokerages. Investors buy REO properties because they are usually offered at discounted prices due to the fact that they are being sold in ‘as is’ condition. REO properties can be easily found browsing online but they do require some research before purchasing them.
1. Online REO Directories
REO sites and auction sites list REO properties for sale from coast to coast. They offer different sales formats such as an auction, contacting a real estate agent, or bidding directly on the site. Some of these sites also include lists of properties in various other stages of foreclosure.
2. Real Estate Broker
A real estate broker helps investors find REO properties. Real estate brokers provide property listings with information that isn’t always public. They know how much the house was last sold for and what mortgage company foreclosed on it. They have been inside the property so can give an accurate description of its current condition.
3. REO Banks & Government Loan Insurers
Once you have searched for REO properties using online directories and/or real estate brokers, you may want to search on REO Banks and Government Loan Insurer sites. These sites feature their own REO listings, however, they don’t list foreclosures and they don’t offer as much detailed property information as the REO directories and real estate brokers do.
Next Steps After Finding an REO Property
Contact a Listing Agent – Make sure all your questions are answered by an agent or property representative.
Schedule a Walk-Through – Examine the property in person to see if you’re still interested since there may be discrepancies between online info and the house’s current condition.
Schedule a Home Inspection – The seller won’t be making any repairs but it’s important to know what needs to be fixed right away and if there are any serious issues.
Schedule an Appraisal – This will tell you what the home is worth.
Keep Your Budget in Mind – Make sure you are still in line with your budget after you find out the results of the property inspection and appraisal.
Write an Offer – If everything is in order, have your real estate agent draw up an offer on the REO property; this may be done online or in an auction format
Buying REO properties requires patience, skill, and more than a little bit of determination. That’s because there is only one answer to the “where to find REO deals” conundrum: wherever you can.
The spread of COVID-19 was officially declared a pandemic by the World Health Organization on 11 March. Shelter-in-place orders have been issued for cities across the country and 23 million individuals were reported claiming Pandemic Unemployment Assistance benefits by October 2020. Additionally, big firms started rethinking their office needs and some commercial real-estate deals were put on hold. Therefore, it is evident that the pandemic has already caused widespread disruption in the housing market in the U.S., while the main question remains whether COVID-19 will cause housing to collapse.
The housing market is one of the main sectors that are very vulnerable to economic shocks and needs to adapt to the challenges posed by the spread of the disease. Generally, Covid-19 had an impact on the U.S. housing market and the number of homes listed for sales has decreased. However, the common assumption is that the market has remained relatively competitive and below are presented some of the key facts of the housing market as of October 2020, according to Redfin:
Home selling median prices increased by 15% in October 2020 over the past year to $320,625 – the highest on record.
Pending sales went up to 32% andnew listings of homes for sale went up to 8% from a year earlier.
Available inventory – the number of homes listed for sales during October 2020 fell by 29% compared to 2019, reaching the lowest figure over the last decade.
Mortgage applications have increased by 26% from a year earlier during October.
Mortgage rates were down just slightly to 2.8%.
Sales of previously owned homes rose to the highest level in 14 years.
However, the level of the impact on the housing market is still to be observed, as it is uncertain how long the COVID-19 pandemic will last.
Have you decided to start a home renovation? How are you going to finance that? Are you going to finance on your own or do you want to apply for a home improvement loan? Depending on your own situation and the size of the necessary renovation, you can find different possible funding options. United Field Services, Inc. wants to present some of the most common ones for your attention.
Refinance your home loan
Another option to start a renovation without taking an additional loan is reviewing your current home loan and checking whether refinancing the mortgage will suit your needs. In other words, you can leverage the equity of your home and involve additional resources for home improvement. This will be calculated by comparing the value of the assets you own and the amount of your current mortgage.
An important thing to consider is that there might be some hidden fees, including the ones for appraisal, taxes, fees for origination, or other related costs. Additionally, if you are interested in taking a long-term loan, the life of your loan will be extended and you will need to pay off for a longer period. However, this option might be beneficial if you can negotiate a lower interest rate compared to your initial one.
Take out a personal loan
If you do not want to connect your renovation loan with the home value, taking a personal loan might be the best option, especially for small-scaled renovations as they are typically provided up to around $50,000 and are offered in the secured or unsecured forms. This type of loan is more convenient, as it mostly has lower interest rates and if you choose an unsecured loan, you will not be required to provide collateral. The interest rate will mostly depend on the agreed terms, the specific product, and the credit history you have up to now.
Home equity line of credit (HELOC)
The home equity line of credits (HELOC) is very common for financing home improvements. HELOC is a secured loan, which is not provided as a lump sum, instead, you can withdraw necessary funds from the line of credit several times. The latter means that you will have to pay the interest-only for the portion of the HELOC that you have already used. Based on the fact that your home is provided as collateral for the loan, the interest rates are usually lower than the ones for personal unsecured loans. HELOCs are mainly suggested with a 10-year period for withdrawal and 20-year for repayment.
Home equity loan
Compared to the HELOC, the home equity loan is mostly known as a second mortgage and is provided as a lump sum. The loan is repaid for the defined number of years in the fixed monthly payment, which makes you secured from the market fluctuations. This is a comfortable option if you are sure about the total amount necessary for you. However, if you have additional expenses it might become a problem as for this type of loan, given that your home is again used as collateral.
If the size of the renovation is planned to be on a large-scale, such as knocking down and rebuilding your home, another possible option to be considered is the construction loan. This type of loan mainly depends on the estimated value of the house after the renovation, which gives you an opportunity to cash out the necessary amount of budget for renovation-related payments.
If you are ready to start the home improvement process, as we have presented, you have multiple available options, starting from using your own savings to HELOCs, home equity loans, or construction loans. In case the renovation is small and is based on regular expenses, you can consider also using a credit card or overdraft option. Before using this option, you should note that these types of loans have higher interest rates and additional fees than others.
You can also look at interest-free loans or grants for specific renovations that might be suggested in your area, for instance, there are certain incentives in some states offered to owners adding solar panels to their houses.
How to apply for a home improvement loan
Apply before you need to start improvements.
Determine how much you need.
Determine your preferred loan term.
Consider your eligibility.
Paying from your own pocket
In case you prefer to avoid taking new loans, you may finance the renovation from your savings or other funds you are able to access. This option appears to be easier and less risky than lending a loan if you have enough money to cover all of the home improvement costs.
Using your own finance means you can start your house renovation without worrying about extra expenses afterward. Nevertheless, you need to consider the planning of your savings carefully. You need to check that after the withdrawal of the necessary amount for the renovation from your savings, you still have some emergency money sufficient for unforeseen expenses.
Whether you want to improve your marketing strategy, create a better client experience, get more leads, optimize client management and communication processes, organize disclosures, there are tools and solutions perfected to meet those needs.
Here United Field Services presents the main categories and a list of solutions available that you can start using today.
Real Estate CRM Tools
A typical Real Estate CRM tool helps to manage leads, automate salesforce, emails, and contacts. It brings value by helping to track, manage, and move prospects through the sales process.
The system is an all in one solution for anyone who’s looking for a CRM system that will combine lead tracking and management, marketing activities, action plans, transaction workflows, auditing, reporting, and many more. Through the comfortable UX design, TotalBrokerageis an ideal solution for the agents who’re trying to increase sales in every possible way. TotalBrokerage is mostly used as real estate transaction software.
Billing: From $219/month
HubSpot CRM is considered the most popular CRM system. On HubSpot, you can personalize email templates, schedule meetings, manage the personal information of your clients, track performance, and much more. If you’re looking for a free real estate CRM software, you can start with HubSpot.
Drawbacks: Although Hubspot is free, and has perfect features for real estate agents, it has some drawbacks too that you must be aware of. Some of the drawbacks are: it gets expensive if you scale the business or your operations. It’s difficult to use not as an all-in-one tool, the available templates are difficult to change, A/B Testing options are limited, you have to pay for technical support, etc.
Billing: Free and paid options are available.
Freshsales is an Ai-based CRM and deals management software. The Freshsales’s top features are lead, contact, deal, account and email management, event tracking, lead scoring, etc. Here you can automate calls, Auto-assign leads, and create complete workflows. One of the pros of this tool is the clear interface of reporting systems.
Billing: You can have a forever-free plan and always have a chance to switch to paid options starting from $12/month.
Agile CRM helps to manage personal or team tasks, set up meeting appointments, follow the documentation, etc. Thanks to all these features, the system is usually listed among the best free CRM software for real estate agents.
Although the free features may be enough to run the necessary operations, Agile CRM offers additional paid features that you can purchase with a starting price of $8.99/month.
Real Estate Agency Solutions
With Bitrix24 you can manage a project, assign deadlines, and keep communication with clients. The website suggests live video conferencing, social media assimilations, callback forms, and many more features.
Paid option: You can get its always-free version, but Bitrixx24 offers to buy more storage or integrate sales intelligence for only $24/month.
This website will help you manage your team and schedule. The most important feature is that it allows different permissions for different users. So not everyone can have access to the stored information.
Pricing: Starting at $99/month
If you’re looking for real estate back office management software, BackAgent is here for you. Mostly used for team management, BackAgent is a good tool with the main CRM features. You can create checklists, track tasks and deals, and many more. The users mostly like the checklist adding option, as it helps to track the deals and proceed them smoothly.
Billing: From $5/month
Real Estate Transaction Management Solutions
Loft47is for following the financial activities of the company/agent. It integrates with other real estate tools that help to manage the transactions, fees, commissions, etc.
Billing: From $90/month
DotLoop will help to optimize the real estate transactions. With real-time visibility of all transactions, the agents will always get their automated workflows.
Pricing: Starting at $29/month
The leading part of Pipedrive is that you can assimilate it with Trello, Asana, and Slack. By creating the funnel the system helps you to easily find in which stage exactly your contract is. By this feature, Pipedrive deserves to be among the best CRM for real estate.
Billing: From $12.5/month
Commercial Real Estate Solutions
RealSpace helps to create and publish listings, brochures, and share it with your leads. It manages the leads from multiple locations and centralizes the data in one place. With easily customizable designs you can create a website for your listing. RealSpace is among the best rental management software for numerous listings.
Billing: From $49/month
Contactually is a specially built CRM system for real estate agents. Contactually is designed for creating personalized offers for the buyers and provides support in following the funnel and automating the campaigns.
Pricing: From $69/month
Zillow Premier Agent
With Zillow, you can access information about your potential client’s search history which may be helpful for you with the development of personalized offers for them. Once you’ve been assigned as “My agent”, the client will only see you as an agent while looking for an agent list for a specific listing.
Paid option: Zillow offers lots of advertising options to fit any budget
Best real estate app for estimating closing costs. PalmAgent ONE is considered as the real estate best closing cost app. It calculates both the “buyer estimates” and “closing costs”.
Pricing: Starting at $0.99/month
Besides being a CRM software for house retailers, it also offers marketing solutions such as creating websites integrated with the CRM system. It allows us to organize listings and automate daily tasks. Propertybase is one of the best CRM for real estate.
Billing: From $69/month
Wise Agentis ideal if you have a large scale of information on clients. It has a centralized accessible database. It automatically pulls social data from the mailing of the clients.
Pricing: Starting from as low as $29/month
Real Estate Marketing and Lead Generation
Zurple users are mostly describing the system as “it helps you to generate leads even if you’re sleeping”. It’s one of the best real estate lead generation software available in the market. With the integrated behavioral marketing automation, the system tracks the leads and automates the follow-ups with the customers. By using the analytics the Zurple provides you can reach the customers on the most preferred time and transform the lead to a meeting.
Billing: From $99/month
Hire Aiva is a good solution for any agent who’s looking for an automated follow-up system. Once the system has caught the lead, it starts the personalized tracking and helps you to get in touch with the engaged customer in any convenient way for you.
Billing: From $299/month
This tool will help you to create a personalized landing page in a few easy steps. First, you need to choose your target audience. Are you going to target home sellers or buyers? By answering some additional AI-generated questions you will get the best landing page sample for you.
Pricing: Free trial and $99/month
They offer A/B testing features for landing pages. A/B testings will help to understand your potential clients’ needs and preferences. You can integrate it with a CRM system and get the most out of the landing page.
Pricing: Starting from $269/month
The main advantage of Placestercompared to other website builders is that it is built-in SEO friendly way, so you will not have problems with customers looking for your listing. They have pre-written content and lead-capturing forms.
Pricing: Starting at $99/month
ZOHO provides the best solutions for the agents who are aiming to be in contact with the customers in every possible way. The system allows integrating live chats and being in contact with customers via Social Media channels. The real-time reporting that the system provides helps to be in touch with your business no matter where you are.
Billing: From $18/month
Once someone checks for your link the system will define a lead you’ll get an email or notification and immediately follow the funnel. It is also convenient for managers who want to be in touch with agents and track their productivity.
Virtual Tour Tools
In iStaging LiveTour you can create 360 tours for your listings with your phone. The image quality can be up to 8K. You can buy a 720 lens and take photos by using your phone.
Pricing: Starting at $5/month
The lockdown has reminded us that we need a backup plan for every aspect of our lives. The EyeSpy360helps you to create virtual tours and 3D modelings of your listing. By simply uploading your 360 photos the system does the rest. You can also integrate a group video chatting option that is ideal for non-solo customers.
Billing: From $13.99/month
Call Tracking Tools
REDx + Storm Dialer
If you are not using a cold calling strategy and tools, then you are losing business deals in this industry. REDx + Storm Dialer helps you to manage your calls by using an autodialer. Pricing: Starting at $99.99/month.
By its nature, the real estate industry is highly competitive and evolving. These tools will help you as an agent to stay competitive, win new clients, save more time, and become a top real estate agent. Keep up with the current tech innovations and integrate the best real estate software solutions into your daily operations.
To give you in-depth insights regarding the U.S. national housing market here we present the breakdown of the Q1 2020 U.S. Foreclosure Market Report. During the Q1 of 2020, there were a total of 156,253 U.S. properties with a foreclosure filing. Compared to Q4 2019, it is up by 42% but it is down by 3% from a year ago. The foreclosure process has started on 81,251 properties (+ 1% from Q4 2019 but -11% from Q1 2019).
Banks repossessed 29,923 properties (REO), ( -28 % from Q4 2019 and -16 % from Q1 2019). This is the 16th successive quarter with a year on year drop in U.S. REOs. Over 40 states recorded year on year decline in REOs including Tennessee (- 39%); Florida (-37 %); New Jersey (-33 %); Pennsylvania (-32 %); and Texas (-29 %). While the majority of states reflected the national trend of a decrease in foreclosure starts, in Q1 2020 foreclosure starts increased in 11 states: Alaska ( +16 %); Georgia (+ 12%); California (+ 10 %); Delaware (+3 %); Illinois (+ 1 %), etc.
Foreclosure Market Overview for March 2020
In total 27,812 U.S. properties started the foreclosure process in March 2020 (+ 3 % from February 2020 but -14 % from March 2019). Nationwide the foreclosure process was completed on 9,091 U.S. properties (-13 % from February 2020 and -25 % from March 2019). In Delaware, New Jersey, Illinois, Connecticut, and Florida states were recorded the highest foreclosure market rates.
These insights show how strong was the U.S. national housing market. However, because of the Coronavirus pandemic in March, millions of Americans started losing their jobs. It is expected that in the next few quarters the foreclosures will get even lower, such as lenders (banks) are offering forbearance. However, if unemployment continues to rise people may not be able to make their mortgage payments, so numbers of REOs could rise later this year.
If you want to organize a home renovation smoothly and enjoy the process, instead of stressing out and overspending, you should start with planning. Clearly mapping out the whole project prior to start is considered to be one of the key success factors. Planning your home renovation will help to save time, cut costs, and avoid the most common home renovation mistakes.
In the starting stage, a few details are extremely important: cost factors, your budget, timelines, the resale value of renovations, and most importantly the team of contractors who will manage and complete it.
For those who are planning to start a renovation, United Field Services, Inc. created a simple guide consisting of all the important factors and know-how for successfully planning and organizing any type of remodeling.
Clarify Your Renovation Goals
First, clarify the objectives of the renovation: is it for your forever home or you are preparing the property for sale, and are the designed changes “needs” or “wants”?
Depending on the size of your family, the needs and preferences of each member, plus the current state of the property, the remodeling project of forever homes may vary by scope, cost, and type. Start by writing a big list, then narrow down every change you’d like to make. Balance the “needs” and “wants” to organize within a budget and in your desired timelines.
However, if you are renovating for reselling the property consult with a few local real estate agents. Their objective feedback will help you to make the property more attractive to buyers and make the selling process easier. Or do your own research and make sure renovation will add value and increase your home price.
Research and Get Informed
Whether your home renovation is planned to encompass only remodeling a kitchen, simple bathroom makeovers, or just changing the flooring, you are going to face a lot of challenges while making the final decisions. In order to turn your home into a functional and beautiful space on a budget, each aspect must be well thought of and backed on research.
To make sure that later on you will not regret the decisions made during the process, arm yourself with information. Before buying any materials or hiring contractors, thoroughly explore design inspirations, saving, and project management tips.
Types of Home Renovations You May Consider to Tackle
Based on the scope of the project there are 4 main types of renovations: kitchen, bathroom, basement renovations, and additions. Other than that, home renovation projects can be categorized according to their objectives and have the following directions: basic renovations, curb appeal improvements, renovations that add value, and personal “wants”.
For instance, the basics may cover a leaking roof restoration, adding functioning gutters, changing flooring, mold removal, etc. Curb appeal improvements comprise a well-maintained lawn, fresh and modern color of paint, a clean look, and new appliances, etc. Value-added renovations are kitchen renovations, adding new windows, and new siding, etc. Personal preference projects may include adding or redesigning swimming pools, playgrounds, wine cellars, and game rooms.
Home Renovations That Increase Home value
It’s recommended to do small renovations with neutral aesthetics and focused on improving the functionality. Extensive custom upgrades may be appealing to you but not potential buyers of your property. Therefore, make sure that the return on your investment will be positive. For this reason, consult with a local real estate agent and get valuable advice from them.
For example, the projects that add considerable value and recoup the construction costs are kitchen renovations, new windows, adding storage capacity, improvements in curb appeal.
But there are remodeling projects that are tricky to evaluate in terms of the potential return on investment. For instance, conversions that may not be worth your investment include converting a bedroom into a studio or movie room, enlarging a space by removing walls, extending a room by eliminating a bedroom, big remodeling projects in the basement.
Planning Permission and Regulations For Renovations
You should prioritize completing code-compliant home renovations. Make sure your proposed changes and conversions are compliant with local regulation laws. As a result, you will not encounter any difficulties later on in the inspection process from local authorities or when selling the property. In addition, you will be guaranteed that all improvements are reliable and safe.
However, not all redesigning projects require permits. First, discuss your project with your local building authority. They will provide you the detailed information and available guidelines.
Create a Home Renovation Budget
Whenever you consider organizing a home renovation, create a comprehensive budget. It will help to set a spending limit, prioritize your spendings, and have a precise plan. Start the budget planning process by evaluating yourfinancing options and the availability of financial resources. If your personal savings are not enough for financing the project you might need to apply for a construction loan, home equity loan, refinance your home loan, etc.
In the budget planning process, the next step is setting timelines, which isfollowed by cost evaluation.
Identify and Set Timelines
Different factors can affect the timelines of remodeling projects. Major variables are the scope of the renovation and the size of the hired contractors’ team. Also, it’s important to consider the project objectives and what you are trying to achieve by remodeling: an updated look or increased functionality. It may take three weeks to renovate a bathroom with new cabinets and fixtures, but a few months to get a heated floor or a new tile. Typically the longest projects are additions.
You should be prepared for some possible delays which are very common and take it into account while setting timelines. For example, the process of waiting for inspection reports, product/construction material delivery issues, or subcontractors may cause postponements. In addition, the weather may affect outdoor projects. Unforeseen problems may occur during the remodeling process, like rotting wood inside the walls or mold, etc.
A well-scheduled timeline will include the start date, plan for the next several weeks, including possible delays, and the end date. To set a reasonable timeline consult with general contractors by discussing all the components and details of your project.
How Much Will a Home Renovation Cost?
Home renovation costs depend on several factors: the type, scope of the project, materials, and service price of contractors you choose to work with. Consequently, the project budget may range from a few thousand dollars to six-figure digits.
You can get an estimation of the upcoming expenses by consulting with different contracting companies. Contact usdirectly to get price estimates from our professional crew of licensed contractors. We have extensive industry expertise and are always available to serve you nationwide.
Contractors are crucial allies in a home renovation project. Not all homeowners have the experience, time, or skills to organize home remodeling and complete it successfully. As a result, hiring a qualified remodeling contractor plays a huge role.
Firstly, to avoid scams or poorly made decisions get multiple bids from at least three credible contractors. Send project bid requests and ask for timelines from each of them. Compare their offers, expertise, team size, and reliability. Don’t be tempted to hire the lowest bid providers.
Next, sign a contract. One of the available options is a time-and-materials contract. Your payment will be based on the time spent by the contractors and on the cost of used materials. If you want to stick to a budget, a better option is to sign a fixed-price contract. In this case, you will pay a pre-agreed lump sum for the project upfront.
Handling Unexpected Problems
Unexpected problems are very common and it’s hard to complete the project without altering your initial plans. For this reason, you have to be well prepared. Be flexible to adjust your original plan, easily solve an accruing issue, and don’t let it evolve into a bigger one.
Some of the issues may arise because of the outdated plumbing systems, electrical wires, bad renovation work done by contractors, material quality or availability, etc. Therefore, construction professionals recommend setting aside an extra 10% to 15 % in cash to be able to cover additional costs caused by unforeseen problems.
In conclusion, do your research and plan every detail. Don’t hesitate to discuss your renovation plans with real estate agents, general contractors, interior designers, and architectures. Make sure that the renovation will be worth investing your time and money. Based on the project type, scope, and objectives all variables may be different. To clarify details about renovation costs and the timelines specific to your renovation project consult with professional contractors. Our experienced team is ready to assist you in your journey of planning your dream house!
Here we present the top locations where we are urgently looking for new vendor partners to join our network. We will update the following list on a weekly basis. In order not to miss any opportunity make sure to follow the updates and apply them. Please learn about our requirements before you proceed to apply for property preservation jobs.
Description Of Available Jobs
Home inspection service companies located in Livonia city, New York state are welcomed to join our network.
We need lawn care service providers in Algoma city, New York state.
Snow removal service providing companies operating in South Plymouth city, New York state join us for rush work.
Property preservation companies located in Jamestown city, New York state please fill out a vendor application form to become a vendor partner.
Property preservation companies serving in North Richland Hills city, Texas state join us for rush work in your area.
We are urgently looking for grass cut service providers serving in Shreveport city, Louisiana state to join our network.
Lawn care service companies serving in Brookhaven city, Mississippi state we need your help.
Home inspection service companies serving in Lufkin city, Texas state join us today.
To get comprehensive information regarding the jobs listed above please reach out to our vendor management department: firstname.lastname@example.org | (818) 230-0300
Property Preservation Job Requirements
• Applicants must have at least 2 years of field experience in property preservation and REO field services. • Must be able to take clear & wide-angled before, during, and after photos of work. • Must be able to meet deadlines for work orders and work with a high volume of orders.
Your eligibility and continued membership in our vendor network are determined by the quality of work, turnaround time, honesty, proper reporting, and proper documentation updates.
Check out additional grass cut, lawn care, construction work opportunities at United Field Services, Inc. in other states here. If you have questions regarding partnership opportunities and pricing please, contact our vendor management department. Follow us on LinkedInto see the updated list of property preservation jobs every week.
If homeowners default on a mortgage, they will be left with two options. Either sell the property and pay the unpaid amount to the lender or ownership will pass to the lender. Banks generally don’t hold defaulted properties on their portfolio. Such as it’s better for them to sell it “as is” at a discounted price in an auction and recoup the missed payments. If the property isn’t sold during the auctions held by the lender it becomes a Real estate owned (REO). For landlords, investors, and flippers REOs are a great way to invest. After purchasing properties in “as is” condition, they organize REO property renovation and put it on the market for sale or for rent.
As REO renovations may be more challenging, it’s important to work with a qualified REO renovation service company. This blog post covers the advantages of REOs and what to look for in a renovation service company before hiring.
What Are The Advantages Of REOs?
Lenders often sell the REO properties at discounted prices during auctions. Such as their aim is not to make a profit out of it, but instead to sell in a short time period in order to recover loan payments that the borrowers were unable to pay on time.
Moreover, banks clear all property taxes and liens for REOs. So, the prospective buyers will not deal with outstanding property taxes and unpaid mortgages of the previous owner.
Landlords and real estate flippers get a high return on investment by purchasing REOs at discounted prices and deploying. After purchasing, landlords lease it to tenants and get a steady income. On the other hand, flippers buy REO properties, renovate, and resell them at a higher market price.
REO Property Renovation Project Overview
REO properties are put in the market for sale “as is” and may need major renovations. Generally, it’s not an issue for flippers, but it affects homebuyers who do not plan to resale and are going to live there.
Compared to other residential properties, REO renovation projects may be more challenging. Given that, you should hire qualified contractors, who have REO industry expertise, a detail-oriented approach, and high-quality standards.
REO homes usually don’t have utilities, have junk and debris that must be removed, require a pressure washing of the exterior, have a leaking roof, etc. The REO renovation service providing companyshould have contingency plans and a specific approach to each REO renovation project.
How To Hire an REO Renovation Service Company?
Below we present the qualities you should look for in an REO renovation service company before partnering up with them.
Matching Team for Each REO Property Renovation
The contracting company should be able to match clients up with the contractors who can best meet their needs for the timeliness,location, and services required.
We have a nationwide network of licensed contractors to complete any big or small renovation services: kitchen, bathroom, basement renovations, additions, whole house renovation, secure the property, remove debris, winterize, and conduct maintenance of the lawn and surrounding areas when necessary.
Dedicated Team of Project Managers
In REO business delays and mistakes are unacceptable. Therefore, appointing skillful and knowledgeable project managers has huge importance for the successful completion of REO renovations.
As a longtime partner to real estate brokers, investors, and mortgage lenders we possess all the resources and experience to meet our customers’ most challenging requirements for each asset and portfolio.
Expert REO Industry Understanding
As compared to residential properties REOs have more specific characteristics and associated complexities. The hired contractors should have expert REO industry understanding. They must create renovation strategies and perform in a way that maximizes RIO for real estate brokers and investors.
With our decades of experience and nationwide reach, we deliver unmatched quality of REO renovation services, inspections, property preservation, andappraisalsthat allow our customers to better focus on their core business.
Prioritizing Efficiency and High-Quality Standards
It is important that the REO renovations comply with current legislation in the area. Therefore, all our contractors are well-trained and have up-to-date information regarding regulatory requirements. From our vendor partners, we require a high level of commitment and professionalism for customer exposure and satisfaction.
This week we conducted an interview with one of our vendors who provides field inspection services to discuss the challenges they face and how do they make sure to meet growing customer expectations. The vendor who we talked with is Mila. Her company was founded in 2015 with a mission to change the way mortgage inspections are done.
What sets you apart from other field inspection service companies?
We take pride in our work and treat all field inspectors with the respect they deserve. This creates an atmosphere of trust and positivity within our company, resulting in happier team members and satisfied clients. What sets us apart from our competition is our personal approach to our work. We put our clients and our inspectors first. A company is only as good as its people. We strongly believe that happy employees and satisfied clients are the keys to business success.
What are the daily changes you face and how do you approach them?
We as a company face the daily challenge of balancing client’s expectations with our team members’ personal life-work balance.
We value family and strongly believe that family should come before work. However, ensuring that day-to-day operations run smoothly while being respectful and considerate of our inspectors’ personal needs can be a challenge. We handle this by maintaining a staff of full-time and part-time field specialists who are ready to jump in and help out wherever and whenever needed.
Where do you see your business in the next five years?
We are constantly growing and expanding, opening new zones, and on-boarding new clients every month. In five years, we will be the premier mortgage field services company in the Mid-Atlantic.
What are your team’s values?
Trust, respect, and accountability are the top values in our company. We keep our employees motivated by consistently providing them with new growth opportunities. We are not afraid of change and adapt to new situations quickly by taking whatever opportunities come our way.
What areas of training are you currently prioritizing?
We are currently refining our vendor management process.
How do you track progress in your business?
We track our progress by monitoring our sales revenue and monthly volume, both by the client and by zone. The most important metrics are sales by a client because we want to ensure that all clients are satisfied with our work.
How do you resolve conflicts with customers?
We track customer satisfaction by ensuring that sales by a client are growing on a monthly basis. We tend to have minimal conflicts with our clients. Our general approach is it’s better to take a one-time loss to resolve a short term conflict in order to establish a long term relationship.
What are customers’ expectations and do they change?
Clients are always re-adjusting their rules and expectations. The only constant in this industry is changing. We are very adaptable in this regard, adopting new rules quickly and making sure all our field inspectors are up to date.
Our vendors are our eyes and ears in the field. At United Field Service, Inc. we value their high level of professionalism and dedication. We keep an open line of communication with each vendor partner, as we need to ensure that we are all stronger in our solid front. For more interviews and industry-related updates follow us.
The current uncertain economic conditions have impacted home builders’ confidence. NAHB/Wells Fargo Housing Market Index dropped 2 points to 72 in March 2020. Despite the decline, NAHB Chairman Dean Mon stated sentiment remains strong as low mortgage rates are anticipated to raise demand in the housing market with limited offers for home buyers.
For determining March’s HMI, half of the responses of home builders were received prior to March 4. 21 % of home builders who participated in the survey before March 4 report some disruption in supply due to coronavirus in other countries such as China. 33 % amongst home builders who answered the survey after March 6 indicated that this is an emerging issue.
The impact of the Coronavirus and current stock market declines are expected to reflect more in the following month’s report for NAHB/Wells Fargo Housing Market Index.
NAHB/Wells Fargo Housing Market Index is derived from monthly surveys that the National Association of Home Builders (NAHB) has been conducting since 1985. It indices single-family home sales and sales forecasts for the subsequent six months according to builder perceptions.
Survey participants are asked to evaluate present market conditions for new home sales and the next six months on a scale of “good”, “fair”, “poor” and “high to very high”, “average” or “low to very low” the traffic of prospective home buyers. Afterward, scores for each segment are used to determine the monthly HMI index.
HMI is a diffusion index and its reading ranges between 0 and 100. That means that a monthly index above 50 indicates a favorable and below 50 indicates a negative outlook on home sales.