1. Clean ‘Em Up

If you’re trying to move your property quickly, it’s definitely worth the expense to bring in some professional cleaners. When hiring cleaners for this sort of work, you want to make sure both that they’re professional, and that they’re treating their business as a business. Make sure that whoever you hire has appropriate insurance to cover the property, and that their employees are bonded. The safest bet is to go with one of the national chains: Merry Maids or Molly Maid. Both will do a deep, initial clean (make sure they pay particular attention to the grout and tile in the kitchen and bath!); both should have the appropriate insurances (but they’re franchise operations, so make sure you see the actual certificates of the particular franchise you select); and both will have lower-cost recurring fees to come in every other week, dust everything down, and clean any mess that’s been brought in by showing the home.

You’d be surprised at what a difference just cleaning the kitchen and bath can have in the overall appeal, and speed with which you move the property.

2. DIY

Once everything is spic-and-span, take a look at the fixtures. With a quick trip to Home Depot and a little bit of elbow grease, you can make a tremendous difference in the appeal of these two key rooms. Select some matching fixtures, towel racks, and cabinet knobs, and go to town. For a couple of hundred bucks, you can propel an aging kitchen and bath decades into the future.

Also, while you’re there, grab some paint. Touching up the trim in both of these key rooms with a new, bright color is a simple step that can make a tremendous difference. Fresh paint and fixtures can capture the eye in a way that will cause potential buyers to perhaps overlook other, deeper issues with aging kitchens and baths.

3. Stage and Photograph Well

Sure, you’ve put a fancy art book on the coffee table, and are bringing fresh flowers in every week, but what have you done for staging the kitchen and bath?

For the bathroom, it’s easy — big, fluffy and white. Find a place to stack 3 big, fluffy, white bath towels. Hang big, fluffy, white hand towels. Put a big, fluffy, white bathrobe on the hook. Really, it’s that easy.

The kitchen is a little trickier. Wine and cheese boards are way over done. But a home-cooked meal never is. Take a fresh casserole, and put it on the range. Have a big, glass pitcher (a la, the koolaid man) filled with water or juice. Of course, you can’t leave these things around — but the reality is, you don’t need to. For both the big-white bathroom staging, and the casserole and pitcher, it’s all about the photography. Most people are going to form an opinion by looking at the property online, and having these items in place the n you take the photographs is just as important (maybe more so) than having them there when the buyer visits.

The Big Things

For the vast majority of houses, doing those three things above will be enough to help you move the property. However, you will occasionally find yourself in possession of a property that really does need the big overhaul. Yes, it costs some money, but if your appliances are more than 25 years old, and don’t look particularly good, you may have to bight the bullet and pay for an upgrade. Of course, you don’t need to go all Wolf-Sub-Zero with that upgrade, but you do need to pick appliances that look good. Investing $5-$10k in new appliances may not add $5-$10k to the property value … but in some cases it may be the difference between moving the property at all, or not.

The bottom line? Do the little stuff first. If it’s not enough, suck it up and do the big stuff. Kitchens and baths matter.

The post Kitchens and Baths Sell Homes: How to Leverage The Best Options appeared first on First Freedom Preservation.

Spending tons of time searching for and vetting contractors can not only be a hassle, it can be a serious drain on your finances and funding. After all, the time you spend vetting contractors is time that could be spent being more productive elsewhere. That’s why many lenders turn to qualified and experienced REO services companies.

With all the different options on the market today, it’s important to find a company that really stands out and that can make a difference in your property management needs. Let’s take a look at the First Freedom difference, what sets First Freedom Preservation apart as REO service experts and why we can remove the stress of managing your properties, while also saving you money.

REO Property Experts

With mortgage rates sliding, many lenders are concerned about another housing crisis in the future. As this threat looms, they are looking for reliable REO services experts to help deal with the properties they want to get off the market quickly. They want services that can get the job done fast and efficiently, while staying in budget and delivering outstanding quality workmanship at all levels. That’s where our services come in, and that’s what sets us apart from other services.

At First Freedom, we are REO Property experts that offer REO services not only to remove the stress from your property management, but to actually make your overall portfolio more profitable. We can help you keep your properties maintained, stay in compliance with local ordinances, make necessary improvements and deal with tenants and squatters, while delivering ultimate transparency and the highest quality work from contractors who genuinely care about the craftsmanship they put forth.

We offer a full range of property maintenance, management and preservation services that cover all aspects of getting your REO property ready to get on the market and get sold at a high dollar value, fast. Our REO property experts are also tied to our company. We don’t use a gigantic network of random contractors. Our contractors are either direct employees, or are closely associated with our company so we closely vet them for their expertise and monitor every job, every step of the way. Everyone you work with in our company will be an expert in what they do.

A Background in Property Management and Upgrades

When a bank is forced to take possession of a property due to foreclosure or abandonment, they have a right and a responsibility to protect that property. They have to protect their collateral, which means not only securing the property, but keeping it in good repair. This can include everything from cutting grass to protecting pipes, ensuring there are no environmental hazards, engaging in roof maintenance and repair, keeping debris like fallen trees to a minimum and more.

First Freedom takes care of this problem for the bank. When FFP takes over management of a property, they do everything necessary to make it ready for resale. This background in property management and renovations truly sets us apart from other companies and establishes us as experts in our field. First Freedom Preservation began in 2008, but our expertise in property management, construction, renovations and management go back much further.

FFP owners Noah and Al enjoyed long careers in commercial construction, property management, residential construction and the management of rental properties before they came together to begin First Freedom. This extensive background and experience gives them a unique perspective on the problems faced by banks and lenders forced to foreclose on properties. It also helps First Freedom Preservation to offer a uniquely complete range of products and services to cover all aspects of your property management and upgrades.

When you work with First Freedom for your REO property services, you’ll never get a faceless lineup of random contractors. You’ll have a direct point of contact, a product manager who is seasoned and knowledgeable in the factors that go into property management and restoration, a point of contact who keeps in touch the whole time and who offers a complete photo record of every step of the process. You’ll get all these benefits, combined with unparalleled experience and a cohesive organization to provide quality control and craftsmanship you won’t see anywhere else.

Construction and Sales Readiness

When the real estate bubble burst in 2008, banks found themselves with record numbers of abandoned or foreclosed properties. For the first few years, they would sell off these properties to flippers and investors, often taking a loss so they wouldn’t have the properties on their roll. Quickly, however, lenders realized that they could actually handle the upgrade and resale process themselves, potentially making a profit in the process.

By 2012, First Freedom entered the construction end of the game. By handling upgrades and repairs themselves, banks can recoup more of their losses. Naturally, doing this means hiring renovation and construction companies like First Freedom Preservation. First Freedom is a leader in property restoration and construction with contractors in five different states, with more states coming.

Renovation of a property can consist of anything from a quick re-carpeting and paint job to a full-gut rehabilitation. Anything that’s needed at a property, First Freedom is capable of handling. One thing that places this company ahead of the pack is that we are truly a one-stop shop, capable of dealing with any issues that might be needed. The tremendous advantage of working with FFP is that there’s no need to hire twenty different contracting companies to handle multiple jobs.

The First Freedom process means not just getting a property off the roll, but profiting from the property as well. We are here to turn your REO property into an investment that will actually generate income for your company. While on average, you can expect to spend anywhere from $50,000 to $200,000 on a rehab through our company, the results we deliver can make you a great deal more in profit. That’s because of the First Freedom difference. An investment in our services is an investment in your property and your profit.

Our REO property experts will work within your specific budget and ensure that all the necessary repairs and upgrades are made to deliver you first-class service and quality results you won’t believe. Our only goal at First Freedom is to deliver you construction and rehab services that get your property ready for sale, get it off the market fast and turn your unexpected expense in REO management into a genuine profit.  

Established Processes

Another advantage offered by First Freedom are established, proven processes. Many property rehab companies dealt with by major banks are nothing more than middlemen. A bank will hire them, and they’ll simply farm out the work using any of thousands of different contractors who are little more than names and numbers in a spreadsheet. While there may not be a complete lack of quality control, certainly there’s less ability to keep an eye on the quality of work delivered when a sizable company deals with so many other companies.

At First Freedom, we do the work ourselves. We have a small network of very specific contractors with whom we work exclusively, and our people are always directly on site, directly involved with every job. The project managers we use are our staff.

Our contractors use the highest quality sources for equipment and materials and deliver the highest level of quality control and craftsmanship. They don’t just run down to the nearest big box store for discount fixtures. They give you true value for your money.

What are two notable differences that set First Freedom apart? We control every step of the process, and we live by the motto, “Quality, Collaboration, On Time.”

Trust and Transparency

We achieve our motto through absolute trust and transparency. Every step of a job is photo documented, so you’ll be able to see all the work as it progresses. Even if it’s just changing a lightbulb, there’s a photo of the process. We work hand-in-hand with our clients to ensure that we’re delivering exactly the work they want and to see the project through to the end. We will work closely with your broker to ensure any issues are resolved to your satisfaction.

We understand that timeliness is crucial to the success of your endeavors. To that end, our project managers will go to great lengths to ensure that your job always remains on schedule, while also delivering the quality of work you expect and deserve.

When you work with First Freedom as your REO services experts, there will be no up-front costs, and you won’t be hit with constant surprise charges. We don’t believe in unpleasant surprises while working on a property. If something does arise, you can be assured we’ll work with you every step of the way to mitigate the issue while still staying on budget and delivering top quality results.

Core Values to Improve Communities

While we don’t work with homeowners, instead focusing on helping banks get REO properties in shape for sale, we are committed to supporting first-time homeowners. The repairs and upgrades we make are designed to offer first-time home buyers a house that is move-in ready and will provide long-term comfort and quality.

For example, we have our own in-house kitchen designer. First Freedom doesn’t buy cheap materials and cabinetry to save a buck. Rather, our designer will take detailed measurements of every aspect of a kitchen and create a customized layout to deliver first time-homeowners the kitchen of their dreams, right out of the gate. The end result will be smart, efficient, practical, usable and beautiful.

We also work to improve communities and to elevate the quality of life by supporting small businesses and helping our contractors to succeed. We advise them on best practices in the industry and even act as a back end office for them. We’ll handle their shopping, order their supplies and help them to build their business. We set these companies and their employees up for success.

Rather than simply farming out work to thousands of other contractors, we work hand-in-hand with both our clients and our contractors to create first-time homeowner friendly homes that will deliver profit for banks and high-quality living for home buyers. In the process, we help to grow small businesses to support the economy of the areas we serve.

A Hands-On Approach

We talk a great deal about the pride we take in our hands-on approach to service. We don’t use a network of thousands of contractors that we can’t possibly vet or assure the quality of their work. Rather, everyone we work with is either a direct employee or an exclusive contractor with whom we have a close and long-term relationship. Our project managers work closely with our contractors every step of the way to ensure that they stick to timelines, while still delivering quality work. When our contractors are on site, so are our direct employees, overseeing every level of every job.

We maintain complete control over every job, every step of the way, and we keep in constant contact with you, our clients, to be sure that you’re satisfied. We make sure that problems are corrected as they arise instead of covering them up like some contractors do, or instead of moving past them with the thought that they can be taken care of later. We take pride in making things right the first time around on every job, and we offer a complete record of the work done for your additional peace of mind.

Building Relationships

We have a trusted network of repeat commercial clients with whom we work on a regular basis. Our success is defined by the number of lenders who come back to us time and again for more work. We build relationships with our clients that last for years over many different projects. We accomplish this through our attention to detail right from the start.

While we work on the project, you’ll get detailed communications with reports issued once per week that go over everything we’ve done, where the project is in the timeline and what has yet to be completed. We can also offer access to our cloud-based online portal so that you can log in for 24/7 access to all aspects of the job.

First Freedom Preservation uses dedicated asset repair coordinators, or ARCs, to work with you the whole way. They are available during work hours five days per week, and we even offer after-hours emergency lines should the unexpected arise. Our goal is to give you not only a great quality restoration, but absolute peace of mind.

Our Bid Process: Based on Thorough Inspection

When a bank looks for REO property experts to work on a property, multiple companies will bid. In fact, most lenders are required to accept several bids before deciding on a contractor. With First Freedom, our bid process is apples and oranges to that of other REO services companies.

FFP offers a level of complete honesty, thoroughness and transparency in bidding that isn’t seen elsewhere. There will never be a lowball bid followed by surprise increases after the job starts. Instead of by-the-numbers bids, our people will visit the property in advance to conduct a thorough inspection and will deliver complete, itemized information with each bid. We value transparency above all else.

For example, a bank may ask for a bid based on ten elements. We will deliver those ten elements, but we will also itemize other aspects of the property that should be updated, upgraded or repaired, and we’ll explain why. We will perform a thorough inspection, paying special attention to the specific items you request, but pointing out things like broken locks or cracked windows that you may have missed.

Other companies will look at the requested items and issue bids based on comps in the area; they may never even visit the site before work begins. They’ll simply look at what their network of subcontractors generally charge, or potentially ask a subcontractor to deliver an estimate, clean it up to make it look professional and deliver it as a blind bid.

A bid from FFP, on the other hand, is only made when our people have seen and inspected the property. We measure everything, look at the details of doors, locks, windows, insulation, roofing, landscaping and more to make a record of all the work that might need to be done. That way, we can deliver real information based on an actual assessment of needs.

This level of detail can be helpful moving forward as well. If a client calls back with additional questions after the initial bid, the information is readily available because we’ve gone to the property and inspected it thoroughly. We can provide detailed answers right away, down to the roof measurements. We can also easily add additional services to your contract if you request them, based on our initial inspection. We are willing to spend money that we won’t recover on the bid process so that we give you the most honest, up-front  and useful information possible.

While other REO services companies will give you the equivalent of a beat-up, old used car for a bid, we are the REO service experts that will deliver a brand new luxury car option. We don’t hide charges behind low initial bids. When you work with us, you get honesty, transparency and our best efforts, from our initial bid through the final walkthrough and beyond.

Making Your Budget Shine

We also understand that everyone works within a budget. To that end, instead of pushing you to spend more money, we will work side by side as a partner to make your budget shine. Different clients have different specs and requirements, and we will always work within those guidelines. We can provide spec sheets if you’re not sure what you’ll need to spend. These sheets will break down the entire process and show you everything you’ll get from the upgrades. You’ll never have any questions about what the final product will include.

A Growing Business

Just like the contractors with whom we work, FFP is a growing business. Our success has allowed us to become licensed to work in five states, with more on the way! Currently we are certified to work in Maryland, Delaware, New Jersey, Pennsylvania and the District of Columbia. We expect to complete our licensure in Virginia very soon, so keep checking back!

A Range of Complete REO Property Management Services

While the First Freedom difference is noticeable in the repairs and upgrades we offer, we are also notable for offering complete REO services in terms of managing and maintaining properties as well. Our job for you doesn’t end when we finish the repairs. We also help to keep your property in shape so you can get it sold fast and at a great price.

We will offer complete services to make sure that you’re in compliance with all local ordinances to avoid blight. Many lenders are shocked to discover that they can be subject to tens of thousands of dollars in fines simply by not maintaining the exterior of a property. We’ll take care of cutting the grass, trimming the hedges, handling the landscaping and removing debris like fallen trees and excess materials.

We will also help to deal with issues like squatters — we can make the property look lived in to be a deterrent to illegal tenants moving in. We can provide a level of security, and we can even work with local authorities to help remove these illegal tenants before they do more harm to the home. We handle legal tenant services as well as eviction services.

We even offer an ongoing blog full of informational and educational articles to help you stay on top of the game. The information we provide will keep you competitive and help you make the right calls to get your property sold fast.

The First Freedom Difference

At First Freedom Preservation, we have only one goal, and that’s to be your complete, one-stop shop solution for all your REO services needs. We are the REO property experts that can get the job done, from maintenance and beautification to essential repairs and upgrades. We’ll get your property ready for sale and off the market. That’s the First Freedom Difference — no matter what the job, we live by the motto, “Quality, collaboration, on time.”

For more information about what we can do for you or to get a bid on your property, reach out to us today!

The post The First Freedom Difference appeared first on First Freedom Preservation.

The trick is, how can you find high quality craftsmen to take care of the updates, upgrades and repairs needed to take that vacant property from blight to profit? Learn how to identify a good contractor to provide quality renovations for REO properties and where to find one you can count on to get your Frederick, Hagerstown or Annapolis property in shape and sold.

How to Get Quality Renovations for REO Properties

Home improvement projects can be stressful, especially if you don’t make the right choice in aid contractor. The wrong contractor can provide shoddy work, hide mistakes, cut corners, and even drop off the face of the earth, leaving you high and dry. The right contractor, on the other hand, will get the job done right the first time, efficiently, and with constant and open communication.

Check References

The first step in finding the best quality renovations for REO properties is to check the background and references of the companies you’re considering. Do your research and make a list of companies and contractors that offer the services you’re looking for, then check into their history.

Look them up on the Better Business Bureau to see what their rating is and whether they have any unresolved complaints. Look over their website for testimonials, and ask them if they can provide a list of references. If they can’t, that’s a red flag.

Check for Licensure and Memberships

Most contractors are required to be licensed and bonded in order to legally practice in many areas. Check to be sure the paperwork and licensing are in order before you even ask for a bid. Also, look into membership into any professional societies and organizations. Such memberships can often speak to a reputation for quality service.

Look for a Variety of Services

For private individuals, it’s all well and good to hire separate craftsmen for electrical work, carpentry, property cleanup and other services. When you’re trying to get an REO property updated and upgraded, however, you don’t have the time or resources to track a dozen different contractors. You need a service that can provide all the quality skills and results you need up front.

Ask about Communication

Communication is essential. You want a service who’s going to manage your work, while leaving you in complete control, and providing ongoing status reports and updates. Make sure that the service you choose will have a solid centralized method of keeping in constant contact.

Call First Freedom Preservation

If you’re in the Hagerstown, Frederick or Annapolis regions and you’d like quality renovations for REO properties, First Freedom Preservation can help. We have decades of experience doing what we do, and provide a full range of services including exterior and interior upgrades and restoration. Give us a call for more information today.

The post How to Identify Quality Craftsmen for Your Renovations appeared first on First Freedom Preservation.

It’s important to understand, however, that some repairs are more necessary than others, to get those homes sold quickly and at a high dollar value. Let’s look at five inside repairs, renovations and the REO upgrades that are necessary for sale which will provide the best return on your investment. Additionally, we’ll talk about where to find an REO service to take care of your Frederick, Annapolis or Hagerstown properties.

REO Interior Upgrades

Fixing up the exterior of the home is, of course, vital to a fast sale. Curb appeal is everything, so cleaning up the yard and garden, trimming hedges, removing weeds, and a coat of paint outside is essential. REO interior upgrades, however, are just as important. Once people are in the door the house has to look just as good inside as out.

A Coat of Paint

A coat of paint goes a long way towards making your property sale-able, and it’s a very easy and inexpensive repair to do. When you re-paint, go with light colors or neutral colors. The idea is to remove any elements of style imparted by the previous owners, and present a blank canvas that the buyers can turn into their own space.

Kitchen Updates

The kitchen is one of the two rooms in the house with the biggest return on investment for upgrades. People want new appliances, tons of room, and great storage. You don’t need to completely overhaul the kitchen—be cost-conscious. Add some extra shelving or cabinets to increase storage. Change the countertops and update the lighting fixtures. Appliances do not need to be top-of-the-line, but they should be newer and functional.

Bathroom Updates

The other important room for ROI in your REO property is the bathroom. Make sure it’s clean, the paint is fresh, the tiles in good repair, and everything working. New guts and seating on the toilet cost under $50, and you can even put in a whole new toilet, sink, lighting and tub fixtures for a few hundred dollars each.

Lighting Updates

We’ve talked about lighting in the kitchen and bathroom, but really, lighting is important throughout the house. Update all the fixtures and maximize lit areas to minimize deep shadows. There are tons of inexpensive options available to make a home look bright, warm and inviting just by adding a bit of extra light.

Flooring

Hardwood floors are very popular these days, and many homes have them underneath the old carpet. Tearing up the carpet and refinishing those floors can be a bit costly, but it’s also a great way to add return on your investment. If the floors are beyond an easy finish, there are laminate options that replicate the look for less of a cost.

Hiring an REO Management Company

When the time comes for you to perform REO interior upgrades in Annapolis, Frederick and Hagerstown, First Freedom Preservation is here to help. We provide a full range of REO management services including lawn and interior upgrades to get your property repaired and sold quickly. Get in touch for more information today.

The post 5 Inside Repairs or Renovations Necessary for Sale appeared first on First Freedom Preservation.

This makes your choice of company vital to your ability to upgrade, update, maintain and sell your property quickly and at the best dollar value. Here are some important things to consider and look for when choosing a property renovation and restoration expert, and where to go for the best services around.

What to Look for in a Property Preservation and Restoration Service

The property preservation and restoration service with whom you work is going to be a partner in getting your REO properties refreshed and renovated, so you can sell them quickly for high dollar. This means you want a company you can trust. Look for qualities such as versatility, transparency and communication, evidence of service, a roadmap of services, and a team of experts.

Versatility of Services

Your REO property services company should offer a wide variety of services. You don’t have the resources to handle carpentry, electrical needs, landscaping, masonry and tenant eviction or management services. That’s the job of the company you work with, and they need to have the resources to handle all of these services with expert precision.

Your REO services company should be able to landscape and maintain the exterior of the house, make sure the construction is up to code, and perform any and all upgrades needed. They should also be able to upkeep the property and keep unwanted squatters out, and protect it from vandals and burglars.

Transparency and Communication

Transparency and communication are at the heart of any successful relationship, and your relations with your REO company is no different. They need to provide constant reports, updates, and progress reports. You need always to know exactly where you stand with your REO property.

A Legacy of Service

You also want a company whose abilities are well established. Every company is going to claim they have the above. You want one who can back it up. Ask for the phone numbers and contact info of their past several clients. Look for written testimonials from satisfied customers. Then, follow up with these customers.

A Roadmap of Service

When you talk with your potential company, ask them to lay out a roadmap of how the services they offer will progress. You’re looking for a detailed plan of action with measurable mile posts and benchmarks. If they’re not willing to provide that, look elsewhere.

A Team of Experts

In the end, you want a company that’s run and staffed by a team of experts in their field. You want a property preservation and restoration company that has all of the resources you need to get that REO property up to snuff and off your books fast and for top value. If you’re looking for the best REO services company in Maryland, turn to First Freedom Preservation. Give us a call for more information today.

The post What to Look for in a Property Preservation and Restoration Expert appeared first on First Freedom Preservation.

Finding a reliable contractor is far easier said than done, and it’s important to understand the ways that far too many contractors try to hide their errors. Learn to spot these contractor cover-up schemes, and why good property management companies in Baltimore, MD, can keep your REO properties in shape.

Lies by Omission

Often times, a contractor intentionally hides their error. They know a problem exists, but simply don’t mention it, hoping that you’ll never see it. Then, at a later date, it crops up and you’re left in the cold. That’s why it’s important to carefully go over all work that’s done before you pay, and to specifically ask about issues and problems.

Another way to beat this problem is to carefully research your contractor before bringing them on board. Contractors that hide their issues like this tend to have a pattern of behavior. Look for complaints filed by past clients.

The Physical Cover-Up

This one is often used by homeowners trying to sell their houses quickly, as well as by dishonest contractors. It involves things like covering up cracks in the wall behind wallpaper, paneling or paint. Again, usually these issues don’t make themselves known until long after the contractor is paid and gone. Much like omission issues, these issues can be limited by doing some research up front and checking into past customer complaints.

Phony Licensing

Some contractors don’t actually have a license, and are doing their work illegally. These will often mislead clients into believing that they have a license. When your contractor isn’t licensed it can be very difficult to deal with issues and mistakes that crop up.

Even worse, unlicensed contractors might bring a lot of legal issues down on your head. Make absolutely certain that your contractor has a legitimate license, which should be on file with the state.

The Nickel-and-Dime

A lot of dishonest contractors take the nickel-and-dime scamming approach. They’ll continue to find “pre-existing issues” that have to be fixed before they can complete the work they originally agreed to do, and they’ll of course charge you more for those issues. In reality, these issues don’t exist and never did, or they were caused by the contractor. They’ll do whatever they can to make the construction drag on as long as possible and soak you for as much money as they can.

Don’t ever be afraid to challenge these claims, and don’t ever be afraid to ask questions. Make sure there’s a guaranteed completion date in your contract to mitigate this issue right up front.

Property Management Companies in Baltimore, MD

If you really want peace of mind in your REO property repairs, upgrades and maintenance, your best bet is to secure the services of a reputable and respected property management firm. Property management companies in Baltimore, MD will also have a network of trustworthy contractors at their disposal. For help with your REO property needs, contact the professionals at First Freedom Preservation today.

The post Don’t Be Taken by These 4 Contractor Cover-Up Schemes appeared first on First Freedom Preservation.

Sure, competition in the construction industry is fierce. You can hire either a licensed and bonded contractor for $50 per hour or an unlicensed and unbonded contractor for $25 and both said they could do the job. But is it worth the risk to hire cheaper labor? Why does it matter?

Why Be Licensed?

A contractor’s license requirements vary from state to state; however, to do any skilled labor such as electrical work or plumbing repairs on another person’s property requires a license. For a construction worker who can perform a variety of construction tasks, a general contractor’s license is required. To earn that license, the applicant first needs to show documentation that he or she acquired adequate education or work experience and pass specific exams, and some states do require multiple exams to obtain licensure to perform different sized jobs. An active worker’s compensation insurance policy and being bonded are also usually required to obtain a license.

Why Be Bonded?

Being bonded is not the same as being licensed. Being bonded provides a certain amount of liability protection for the benefit of the property owner. If the contractor fails to fulfill his contract for a reason, the surety bond can provide compensation to the property owner who files a claim with the state contractor’s board and proves that the contract job was not met.  

The Risks in Hiring an Unlicensed and Unbonded Contractor

First, an unlicensed and unbonded contractor is not in compliance with state laws for working without a license. Second, there’s no confidence that the unlicensed contractor is complying with local codes, permit and inspection requirements. This can catch up with you in the future should you request an appraisal or sell your property, and you will be required to fix these violations. Third, because the contractor has not been tested on his knowledge of construction matters by the licensing board, the quality of workmanship is questionable.

Further, hiring an unlicensed contractor may void any warranty claims you try to make because these implied warranty laws cover only licensed contractors, leaving you with the option of recovering your loss in civil court. It should be noted that if you win your case in civil court, chances are the contractor has no bond money to pay your damages.

One final reason is liability. An unlicensed worker may have no worker’s compensation insurance to cover his or her accidents on the job and may pursue a lawsuit against you to pay his medical bills, whereas the licensed contractor is legally required to have one. All these are reasons that a licensed contractor matters.

Use First Freedom Preservation for Your Needs

Now that you know why a licensed contractor matters, you should know that we at First Freedom Preservation are dedicated to providing full property management services and only hire skilled licensed and bonded contractors to oversee REO property maintenance issues. Coupled with our management experience, transparency reports and quality contractors, you can have a peace of mind and enjoy your investment properties. Contact us today to inquire more about how our services can assist you.

The post Why a Licensed Contractor Matters appeared first on First Freedom Preservation.

Do It Yourself Projects

Kitchens and Bathrooms

Buyers tend to gravitate toward updated kitchens and bathrooms. With a little thought and elbow grease, you can give your kitchen and bathrooms a fresh look by painting your cabinets a neutral color, swapping old cabinet and drawer pulls with contemporary designs and change out the outdated lights. A good scrub on all surfaces, including the floors, will give a nice sparkle to the rooms.

Stage the Place

The key to creating a warm and inviting place that buyers want is to remove unnecessary, distracting items from sight. They need to be able to visualize their things in place. By artfully staging furniture, you can provide an illusion of greater space.

Boost Your Curb Appeal

There are no second chances to make a good first impression, so curb appeal is vital to a successful house sale. Overgrown bushes, dead grass, broken fences and faded paint tend to scare off potential buyers before they even set a foot inside the house. It’s worth your time and a few bucks to upgrade your curb appeal. Fixing the fence, replacing the dead grass with live grass and trimming the bushes are effective ways to enhance your exterior. A new mailbox, freshly planted flowers and a few bags of mulch create a more welcoming entrance to buyers.

Bring Your House Up to Code

Many homes do not meet current codes, although at the time of construction, they were built to code. So, does the house have to be up to code before you sell it? It depends on the code violation, and there are federal, state, and city regulations to consider. By law, sellers must make certain disclosures about the property to potential homebuyers. For example, is there lead paint or asbestos on the property?

More states or municipalities require sellers to meet certain codes or ordinances prior to the close of their sale. Sellers can check with their local real estate agent, hire a home inspector or call the local building department or city hall to inquire about local requirements.

Consider a Major Renovation

Most remodeling projects to boost the value of the house prior to sale rarely recoup the cost of those renovations through a higher sale price. It may make sense to take lower offers and leave the renovation ambitions to the new owners. Alternatively, you may have a project that needs to be done just to initiate bids.

Which renovations will yield the biggest return on investment? Minor cosmetic repairs go a long way to a quicker sale with the least investment. Replacing your dingy floors and adding fresh paint in a trendy neutral color on your tired walls upsells your house better.

Replacing your roof and aging siding can potentially yield a higher return on investment. Better yet, having those repairs done prior to inspection and appraisal will increase the value of your home and reduce the odds of having to fix or adjust home inspection notes later in the sale.

A modern kitchen is a huge draw. but rather than invest huge amounts of money into a major overhaul, buying updated appliances is an easy way to add value and make your home more attractive to a wider range of buyers.

We Can Help

An experienced professional REO property preservation team can you prepare your REO property for sale and sell it faster. Please contact First Freedom Preservation today and learn how they offer top-quality craftsmanship through lawn and interior upgrades to raise REO marketability.  

The post Levels of Repairs for an REO Property Sale appeared first on First Freedom Preservation.

An excellent REO property preservation company, like First Freedom Preservation, can assist you in assessing your REO portfolio and can identify the right kinds of insurance policies that will protect your investments from environmental damages, mold, infestations and wear and tear.

Environmental Damages

Environmental disasters such as earthquakes, landslides and floods are not usually covered under home insurance in most states, so you’re likely to purchase additional riders that are appropriate for your area.

Mold

Insurers rarely pay to fix mold caused by neglect, poor home maintenance or improper construction. However, if there were a sudden leak in your plumbing, and you took the necessary immediate actions to repair it, your standard policy may cover the documented repairs.

Infestations

Insurers typically will not cover bug infestations such as termites or mice simply because they are considered part of maintaining your properties.

Wear and Tear

Property insurance policies are designed to cover catastrophic issues such as fires and burglaries, not general wear and tear. Therefore, they will not cover the cost of replacing the roof or siding, or any basic maintenance required to keep your property in fair shape.

Damage from Vacancy or Non-Occupancy

As with wear and tear, any damages accrued from property neglected due to vacancy are not typically covered. However, some insurance companies do offer riders that cover liability, vandalism and fire for vacant or unoccupied properties.

Determining a Replacement Cost Assessment of Your Property

No one likes to submit claims for damaged property, and the biggest challenge for property owners is to find the best, most accurate way to calculate the current reconstruction cost of their property. The property should be insured based on its replacement cost and not its market value. The replacement cost is the amount you need to rebuild if the property is damaged or destroyed, and the market value is what you could sell your property for in its current condition.  Replacement cost offers more protection because it factors in the current cost of building a replacement structure, including materials and labor.

You could do the calculations for replacement cost yourself and determine building cost per square foot in your area and then multiply that by your property’s square footage. You will also need to factor in the labor, the cost of flooring, building supplies, fixtures and exterior features.

You could also go online and access a Home Reconstruction Website Calculator, similar to what insurance companies use for their home value calculations. After various questions are answered, the calculator will provide you with the current assessment to rebuild your property based upon the information you provided.

A third option is to hire a property appraiser who will research local market rates for construction, materials and labor to produce a report that puts a replacement value on your property.

We Can Help

An experienced professional REO property preservation team can abate the stress associated with property maintenance, help you in determining a replacement cost assessment of your property, make repairs and provide you with ongoing status reports on each of your REO properties.

If you are seeking more information about what an REO property preservation company can do for you in the Baltimore area, please contact First Freedom Preservation today. Using a professional transparent process, we offer full property maintenance, fulfill regulatory compliance, as well as offer tenant occupied services.

The post Determining a Replacement Cost Assessment of Your Property appeared first on First Freedom Preservation.

This can present a problem, as merely owning the property costs money. All too often, when a lender forecloses on a property, the very prospect of the property sitting vacant costs money, and it can quickly become difficult to get any real return on investment. Discover a few REO renovations and repair projects that can deliver a significant return on investment to make you a profit from your foreclosure.

REO Renovations and Repair

A lot of the work you’ll do on your REO project comes down to basic maintenance. Not keeping up with the general maintenance on a vacant home can cost thousands or tens of thousands of dollars in fines from local municipalities. In addition, the more a property goes neglected, the more it will cost to make it livable again and, consequently, the less valuable it will be on the open market.

Basic Maintenance and Repair

This means that the largest return on investment you’ll likely get will be on basic, essential maintenance and repair: keeping up with the lawn, making sure the roof and structural integrity is solid, ensuring that the walls are painted inside and that the floors are in good shape. All of these things cost money but are the essentials of selling the home at a profit. Structural integrity matters, and that’s all there is to it.

Kitchen and Bathroom

If you’re looking to straight up increase the value of the home, the two most popular remodeling jobs, and those that every homebuyer looks to when they examine a home, are the kitchen and the bathroom. These will likely be the first projects you want to undertake. Expanding the space in the kitchen, upgrading it with modern counters and fixtures, an island and an open floor plan are great options that don’t have to cost a ton of money.

In the bathroom, upgrading the faucet, bathtub and toilet, adding some new light fixtures and potentially opening up the size of the room are all great options, which don’t have to cost a fortune but can add significant value to the home.

Finished Basement

A finished basement isn’t one of the most popular upgrades, but it’s one that can be done inexpensively and can really add to a home’s usable space. Address any moisture issues, put up some walls and lay down some flooring and a solid ceiling, and you’ve got a whole extra floor on the house.

Work with Your REO Services Company

If you have the ability to work with a solid and reputable REO services company, they’ll be able to advise you on the best path to take to get the most out of your property, whether it’s a complete upgrade for open market sales or investor sales for a quick divestiture. If you’re in the market for help in this area, contact First Freedom Preservation for more information today!

The post REO Renovations and Repairs with a Significant ROI appeared first on First Freedom Preservation.