Hey everyone. New to the forum, so, it's nice to meet everybody. Is there anyone out there who would provide some information about the best way to file a property preservation company, in terms of LLC, LLP, Sole-Proprietorship, Corporation, etc. etc. It's just gonna be a small company starting out, with just my wife and I. Maybe soon would grow to a few employees. Would like to provide employee benefits if that helps the decision and discussion at all.

Thanks to all. Look forward to learning about your experiences.

You'll probably end up going with an LLC, but some are running an S-Corp. You should really talk to your attorney and your accountant, since you'll need actual legal advice. As far as benefits for your employees, I wouldn't count on being able to afford it, unless you're paying them minimum wage. If I could do it over I would have started by using a temp service for my employees. Dealing with all of the HR stuff is impossible.

Thanks for the info BadAsset. I have a few attorney friends who I'm planning to consult with for legal advice. I like your idea of a temp service or staffing agency for employees too. I'm going to look into that for sure. Thanks.

BadAsset. While we are on the topic, is there anything in the realm of licenses and certifications we will need before we get started in this business? I already have the insurance issue taken care of. If it's too big a pain in the rear to write about, maybe you know of a reference website you could refer me to. I appreciate any information you, or anybody else, have in advance. Thanks,

contractor's license, epa lead-license, possibly a state lead-license if your state has one, and a state tax id (some states require you to pay sales tax on grass cuts). some preservation companies try to get by without a contractor's license, I think that's a big risk.

I was told that you didnt need the EPA Lead Certification to work on foreclosures since the house were vacant. Anyone able to confirm this??

I think you'll find the Law is triggered by being Pre-1978 and by disturbing 6 or more Square Feet of Interior surface (or 20 Exterior); not by whether it's vacant or a foreclosure. Read it for yourself:

EPA Lead-Safe Certification Program

You need to be licensed even if it's vacant.

if you need to be license, why dont any of the companies ask for the license??????????????

Most of them do. Plus, they aren't the ones paying the fines to the EPA if you aren't licensed. You pay them ... and they are really expensive. If you are in the business of property preservation, then you are expected to know what the [censored] you're doing and how to run a business. That includes knowing all the local, state, and federal laws that apply to your business. Don't expect these nationals to care about you or make sure you're doing everything on the up and up. They will bend you over the first chance they get so they can limit their liability.

Quick question about lead licensing. There are many different license types you can get in the state where I live in regard to lead. There are licenses to "conduct environmental lead assessments, investigation of lead complaints, inspection of lead abatement projects, conduct lead licensing inspections, provide technical assistance on lead issues, etc. None that really seem like they would pertain. Any advice on the kind of lead license to seek?

Thanks all,

You need the RRP from the EPA.

http://www.epa.gov/lead/pubs/renovation.htm

I'm not sure if WV requires anything else.

Thanks for your help BadAsset. It's interesting that you mention "your not sure if WV requires anything else". I've looked and looked, even went to the database archives of the West Virginia Legislature looking for rules and regulations for property preservation companies. Nothing is listed, anywhere. So, I'm not really sure what is required in WV, if anything. Any insight into where I would find some state specific legislation for property preservation companies?

Thanks again,

EPA Authorized State Programs

EPA has the authority to authorize states, tribes and territories to administer their own RRP program that would operate in lieu of the EPA regulations. When a state, tribe or territory becomes authorized, contractors and training providers working in these areas and consumers living there should contact the appropriate state, tribal or territorial program office. Currently the following states have been authorized by EPA: Wisconsin, Iowa, North Carolina, Mississippi, Kansas, Rhode Island, Utah, Oregon, Massachusetts, and Alabama.

looks like WV just needs the RRP from the EPA

and a contractor's license:

http://www.wvlabor.com/newwebsite/Pages/Contractor_licensing_obtain_license.html

Thanks BadAsset,
Do you or anybody out there have any guidance on what to charge clients? I know there are maximum allowable charges for contracts with HUD covered houses, and FHA. Other than that, whats the going rate for property preservation services? Say with an REO property or a private entity?

Thanks for all the help.

Do I detect a little case of "price-fixing" coming on?

bbell, just make sure you're charging enough to make money. It's really easy to go backwards in this industry, especially if you've got a pushy regional or national client that keeps making you drive farther from home and do work for less just to keep the work you have in your territory. Nobody is making money doing 1 acre grass cuts for $30 or less.

Hud allowable is $50 a CY for debris, $100 for winterizations, $60 for lock change with deadbolt, and $40 for a padlock. Do a search for 2010 HUD mortgagee letter on Hud's website and read it over.

Bad Assett,
I appreciate your help. Because of your guidance, I'm on track for a contractors license, signed-up for an RRP certification course, have several quotes coming in from business insurance companies, already have my FEIN number and have registered my LLC with the state. So, I'm well underway with getting my business up and running thanks to you, with a target opening date of April 1st. Still have some marketing tasks I want to complete between now and then and then spread the word. I have a past life in marketing and web-design so that stuff comes natural to me. So again, I APPRECIATE YOUR HELP!!

Vermont, price fixing is the exact opposite of what your seeing here. Actually, I would call it information seeking rather than price-fixing. Since you and Bad Assett are probably multiple states away, price-fixing wouldn't be an accurate description in this "case". Simply feeling my way through starting out in this industry is all. Thanks though.

Hi everyone, I am new to this forum and have already spent 2 hours reading some very intersting stuff here and learning alot! I have recently started a foreclosure cleanout company, set up the LLC, gotten the required insurance, check out licensing and from what I have found out I dont need a license in Indiana. So now all I need is some advice on how to go about finding jobs? I have researched everything I can in the last 2 months and feel overloaded with info but not enough to have any work lined up. lol Any and all advice will be greatly appreciated. There seems to be alot of knowledgable people here! Very glad I found this forum!!!!

The national firms generally want to hire a one-stop preservation company. That would include rekey, winterization, lawn service as well as trash outs. Your best bet might be to try to track down the companies that do this now for the nationals and see if they will sub out the trash-out part to you.

Thanks PA Roadkill. We do offer a one stop shop doing everything from rekeys to winterizations, repairs ect. We are a family runned business using only family and close friends at this time and running on a shoestring budget. It seems most of the larger companies expect you to carry workmans comp to sub for them, but we have a workmans comp exempt certificate and would like to avoid that extra cost in the start up phase of our business but some companies wont accept that.

Debby, only the owners of the company can be exempt from worker's comp. Is everyone working for you an owner? I can't imagine that you will be able to offer repair work in Indiana without a contractor's license. You'll need to be licensed by the EPA if you're going to be doing work on pre-1978 homes.

Getting a contractors license is a great idea. It can open up tons of different doors for you and allow you to offer a broader range of services.