Within the property preservation world, there are three different areas you can specialize in: You can conduct short physical inspections of foreclosure properties for your bank client(s), you can focus on larger repair jobs by being a repair contractor, or you can work as a maintenance contractor. These three fields of work are detailed below:
Inspection Services
As a property preservation inspector or REO inspector, you will be responsible for weekly or monthly inspections of the bank’s foreclosure properties. This is to determine things such as the occupancy status of the property, the current physical condition of the property and if there are any new damages to report, and to check the progress of current repairs that the bank or field service company has hired another independent contractor to carry out. It is not necessary to have a construction background to complete inspections, but this type of experience would be helpful.
Repair Contractor
As a repair contractor, you will have to give a repair estimate and, if your bid is approved, either complete yourself or arrange to have someone else complete the various repairs required at residential properties. These repairs could include but are not limited to: roof repair or replacement; repairing damages caused by theft, water ingress, vandalism, or other disasters; and total refurbishment. Lately, I have been doing quite a few repairs to damage caused by water and mold such as drywall and carpeting.
Many banks are trying to reduce the market time (the length of time a house is for sale) by renovating their housing stock in the better neighborhoods. As a repair contractor, you will need to know how to use basic estimating software; be able to give accurate start and finish dates; and have access to all the necessary equipment, workers, and subcontractors you might need to complete these repairs as quickly as possible. Construction knowledge is therefore essential if you want to be a successful repair contractor.
Maintenance Contractor
Unlike a repair contractor, a maintenance contractor will be completing mostly smaller jobs and will not need a specialized construction background. Typical property preservation maintenance jobs include boarding up broken windows, winterizing properties, trash outs (which involves the removal of debris), maid services (basic cleaning), and lawn maintenance (grass cutting and weed control). A maintenance contractor will also have to complete inspection tasks such as noting the current condition of the property and estimating the cost of minor property repairs. Although you do not need extensive construction experience to complete these basic property maintenance jobs, if you want to combine them with larger repair jobs, any experience or knowledge in the field would be useful.