Texas real estate

In the case of Judge Samuel Alito, and George W. Bush’s bid for the conservative jurist’s appointment and Senate confirmation to the U.S. Supreme Court, there are some very important issues which should be closely scrutinized. While it is true that the U.S. Constitution confers the power of federal judicial appointment on the President, it goes without saying that the Framers’ intent was for the President to choose a candidate for the highest court in the land who would be bias free and advance the greater good for the greatest number of American citizens, not the President’s personal political agenda.

If Judge Alito is confirmed, his replacement of Justice Sandra Day O’Connor would tip the court toward a consistent neo-conservative majority, much as the court was in 1857, under the leadership of Chief Justice Roger B. Taney, when the case of Dred Scott vs. Sandford resulted in the Dred Scott Decision, which declared that all black people in slavery were not citizens, but the property of their owners. The Supreme Court, at that time in history, believed it was properly following the doctrine of stare decisis, or the basis of English common law that the previous legal decision must stand. But contemporary history denotes that the forces of sectionalism within the Union, at that critical juncture in a political climate smacking of war, were a great influence upon the Taney Court. In other words, the personal views of a majority of the justices played a more dynamic role on the decision of the court than did stare decisis.

Judge Alito’s academic credentials are certainly impeccable, as are the credentials of thousands of other lawyers and jurists throughout the nation. But it’s not academic prowess alone that makes a person worthy to be a candidate for the U.S. Supreme Court. Judge Alito has had as many detractors as proponents during the confirmation hearings, who have made their allegations and testimonials for and against the controversial jurist before the Senate Judiciary Committee. From what I’ve heard, those against the confirmation have cited a number of specific appellate decisions which show Alito’s bias toward expanded government and police powers, and a diminished right of constitutional privacy for women and minorities.

They have also shown specific reason to believe that Judge Alito is not being honest and forthcoming with the senate committee, that there have been instances in his background of extreme bias toward the issues of abortion, women’s rights, voting rights, and the socio-legal rights of all minorities. Those who have favored him in their testimonies, especially those lawyers who have clerked for him in previous years, have alluded to his good character, his unbiased nature, and his brilliant scholarly approach to judicial review. They, however, have spoken with sparkling generalities, avoiding juridical specifics.

In this essay, I could elaborate on a number of negative issues pertaining to Judge Alito. But the one that stands out to me as the most flagrant, and which casts the most doubt on his character, was his affiliation with the Princeton University group CAP, or “Concerned Alumni of Princeton,” an ultra-conservative campus organization that actively bemoaned the impact of co-education and affirmative action. Alito graduated from Princeton in 1972, and university records show that he became a member of CAP that particular year. As to what Alito did during his membership, the records are not clear; but his claim of not remembering his association with the campus action group, comparable, perhaps, to the SDS or “Students for a Democratic Society”, is much less than clear, especially denoting Alito’s uncanny ability to recall minute details of the cases on which he ruled as an appellate judge fifteen years later.

I graduated from the University of Texas at Tyler in 1980 and can recall all of my campus affiliations, especially those which had great social impact on university policy. For some reason, I see Judge Alito’s shoulder shrugging about his affiliation with CAP much the same as what occurred in the case of a prominent West German lawyer who was being considered for a judgeship by German Chancellor Konrad Adenauer and a committee of German legislators in 1960. It was a fact that the lawyer had become wealthy as an industrialist during the period of the Third Reich, and the reign of Hitler, and records showed that he had been a member of the Nazi Party for a short time. Yet, the lawyer shrugged his shoulders during the confirmation hearings and said that he could not remember anything he actually did with the Nazis. Was he to be believed? Conrad Adenauer immediately withdrew his sponsorship of the man when he found out that he was a former Nazi and quickly separated himself from him socially.

I’ve also noticed something else about Judge Alito that causes me great concern. He has not used “yes” or “no” to answer any questions during the confirmation hearings. That was a rule set down long ago by a society of Greek sophists. It was a rule of sophistic dialogue, the unpopular method condemned by Socrates, used by ancient Greek lawyers to confuse the truth. Sophistry, it was claimed, was the means of altering the truth to make something as dark as sin appear as white and pure as the driven snow. And the first rudiment of sophistry was never to answer a question with “yes” or “no.” The approved methodology was to begin a dialogue with a restatement of the question in another, more ambiguous, form than in which it was asked. Then the sophist makes an even more ambiguous statement that will, seemingly, answer the question that he has rephrased. The end result is a statement which might be accepted by the questioner, but which never actually answers the question. Was I the only one who saw this as a pattern in Alito’s answers? I hope not.

There is a serious doubt as to Judge Alito’s veracity. And that’s something utterly untenable to the prerequisites of a qualified justice for the U.S. Supreme Court. If Alito is confirmed, I foresee an inexorable shifting of the John Roberts’ Court to the right, to advance the extremism of the neo-conservatives who are proponents of the Bushian political agenda. I foresee the rights of women to biological privacy, and to control their reproductive processes, potentially diminished through a reversal of Roe v. Wade, and more unconstitutional restrictions placed upon the rights of minorities to cast their votes in national elections. I also dread the ominous judicial legislation of morality through decisions which will abridge the First Amendment separation of church and state. While firmly believing that Chief Justice John Roberts will prove to be a rubber stamp for lame duck George W. Bush and an austere Republican majority in Congress, I have no qualms about saying that the poignant doubts hovering over Alito’s honesty and fair objectivity will cast an awful threatening specter over the court. As much of one as was created in the Taney court with the Dred Scott Decision.

By: Norton Nowlin

Two of my favorite New Mexico rivers to fish are the San Juan River and Cimarron River. This story is about the Cimarron. The Cimarron River is in Northeast New Mexico and emanates out of Eagle Nest Lake. Located on the eastern edge of the Sangre de Cristo Mountains, this dry fly gem flows eastward through Cimarron Canyon State Park along US Hwy 64. After flowing into several other rivers this water ultimately reaches the Mississippi River. New Mexico Game and Fish estimates nearly 4,000 catchable sized wild browns per mile, this is unquestionably the healthiest wild brown trout fishery in the state and one of the healthiest in the southern Rocky Mountains. Most of the wild browns are 10-14 inches with the occasional big boy. This fishery is not well known but can still get a little crowded close to the roads during mid summer.

I can easily get to the Cimarron within a one-day hard drive from my Fly Shop near Tyler, Texas and be fishing late that afternoon or early the next morning. The high mountain scenery is beautiful and the fishing is great.

My story begins in the middle of June 2002. During June, the stonefly hatch is in full swing on the Cimarron and big browns will eagerly attack a size 14 or 16 Stimulator with regularity. This is my favorite time of year to fish this river. This is dry fly fishing at its best.

Unfortunately, if you remember, this was during the time wild fires were engulfing many parts of New Mexico, Colorado and Arizona. The Cimarron Canyon State Park was surrounded by a couple of such fires.

I arrived at the Pine Ridge Hotel, only about a mile from quality fishing water, late Monday evening. This is a quaint little four-room hotel nestled near the entrance of the state park. After checking in, the hotel owner told me that the park was closed and had been since Friday. Because of the fire dangers, it was closed to everything including camping, hiking, picnicking and YES… fishing. Every park pull off was barricaded in bright yellow. It seems like every other tree had a Park Closed sign nailed to it. I couldn’t believe it. I had driven 12 hours strait to spend some personal time dry fly fishing and… wouldn’t you know it… No Fishing. I was sick. If you have ever wanted to see a big man cry this would have been a great opportunity.

There were no other places near by that I could fish unless I had a guide to fish some private waters that were near by. I called my good friend, Doc Thompson, of High Country Anglers. Doc is the best fly fishing guide for the small streams of Northeast New Mexico including some private areas of the Cimarron. He was booked. No chance for me to fish any private water.

I was considering cutting my losses, packing up my gear and heading home with my tail tucked between my legs when I saw the park ranger turn into the motel parking lot. I eagerly approached him, explained my predicament and pleaded with him to be merciful on this misguided Texan. He indicated that there was little he could do. He was ordered by higher-ups to close the park. The area was very dry and the fear of the forest fire spreading was at an all time high. He finally gave me a miniscule window of hope when he said that if the wind didn’t pick up or change directions during the night he would ask if he could open the park the next day. No guarantees. There was only a small chance of things falling my way but I decided to wait it out and see.

The next morning, bight and early, I walked to the hotel owners desk with my fingers and toes crossed. “Great news” the owner said, “you can fish.” The park ranger called the hotel and told the owner to go tell Tex he can fish. The ranger opened the park to fishing only. No one could camp, hike or picnic. Fishing only. Best of all, he left all of the barricades and Park Closed signs up. My head began to buzz with this scenario. Could it be true? Is it possible that any where in this country there is a stream that is full of big browns, full of fish eager to slam dry flies, has had no fishing for five days, has Park Closed signs on every other tree and has bright yellow barricades at every pull off? Is this really happening? And most of all… is this really happening to me? YES… it was!!!

I almost broke a leg and a fly rod getting to river so quick. I was the only person fishing this 12-mile stretch of quality trout water. The ONLY person. The river has had no fishing pressure for five days. None. Notta. Absolutely zero. What a magnificent opportunity. I hit the water at 8:00 am. Knowing that the stonefly hatch would began at a bout 9:00 am, I tied on a size 16 yellow Stimulator with a Copper John dropper on my 2wt rod. For the next hour, the catch was 50/50 on the dry and nymph. When the hatch started, I removed the nymph in order concentrate on the dry. My stimulator was repeatedly demolished by hungry trout. The hatch started around 9:00 am and eventually tapered off around 2:00 pm as the day warmed. During that time, I landed more than 40 nice brown on a dry. Most of them were in the 10 to 12 inch range. Some a little smaller and some a little bigger. The whole time, I saw no other person on the river. I was in total fly fishing bliss. Later that afternoon, as the temperature began to drop, they started hitting hard again and did so until just before dark. I lost count of the total number of fish that I caught that day. After a while you just quit counting. The fishing was phenomenal and the solitude was even better.

During the day, when I would take brake at my parked Jeep for a shot of Joe or something, people would drive buy giving me the stare of disgust. I could see their lips mumble something like, “that idiot Texan… can’t he read the signs?” I was in no way interested in setting them strait. I wanted the entire state on New Mexico as well as the whole wide world to think the park was completely closed and may never open again.

That evening, back at my room, the harsh realities of that summer were vivid. I sat on my front porch and watched the helicopters and other large aircraft drop loads of water on the forest fires that were scattered along the mountainside. Huge walls of smoke draped the horizon. I couldn’t help but become sorrowed because of the destruction that was unfolding before my eyes. When it was too dark to see, I retired to the confines of my room.

Later that night, as I lay packed tight in my cozy little bed, I found it difficult to sleep. As my mind drifted from the fires outside and danced with thoughts of my day of fishing, I giggled as I felt myself swelling with contentment. My angling experience kept running through my mind. I couldn’t help but wonder what the next day would bring. Would my fly fishing solitude come to an end? Guess what… it didn’t.

I hit the park early the next morning to be faced with the very same scenario. The signs and barricades were still in place and no one was in sight. Using the same flies and techniques I enjoyed equal success as I had the day before. It wasn’t until late that afternoon did I see the only other car in the park. The word was finally out. By then, it was OK. I enjoyed a few hours of good fishing the next morning before heading back to Tyler.

Is there a moral here? I don’t know. It was defiantly a fishing trip that I will never forget. In retrospect, however, it seems really unfortunate that my memorable fishing trip was at the expense of so much. The southwest lost an awful lot of good forest and helpless wildlife during that horrible time. Homes were gone and lively hoods were destroyed. I suppose the saying remains true, “someone’s good fortune is usually at someone else’s expense.”

By: Steve Robbins

The beautiful, Italian-inspired homes of Tuscan Village offer residents 55 years and older a luxury living community in serene, park-like surroundings; in fact, the heart of Tuscan Village is itself a park that features waterfalls, streams, and abundant green space. Residents in this Lakeway, Texas community enjoy the best of lakeside living on the shores of Lake Travis. Abundant recreational activities and natural beauty make this well-designed development a desirable choice for buyers looking for something special.

Tuscan Village offers unique amenities to residents, including a 10,000 square-foot clubhouse with a fully-equipped fitness center that features a dedicated cardio workout room. A bar and bistro are also located on-site, along with areas for socializing and meeting up with neighbors. The private outdoor pool is heated for year-round fun, and concierge services are included as a benefit of ownership. The development contains a number of gorgeous walking paths along scenic Lake Travis and through planned green space that connects with local trails, providing an outstanding hiking, biking, or walking experience. Cobblestone streets and custom-stained driveways provide visual interest for walks through the neighborhood; the community also sponsors a number of events and activities including concerts, lectures, and social events for the benefit of the residents here.

Property owners at Tuscan Village also enjoy membership at the Rough Hollow Yacht Club and Marina, which allows them to take advantage of the outstanding fitness and yoga center and facilities and provides an additional social outlet for residents. The club features an outdoor amphitheater and open-air pavilion perfect for entertaining, while offering access to one of the most complete marina and supply stores in the area; the marina offers 267 slips for the convenience of its members. Homeowners at Tuscan Village also enjoy significant discounts for membership at the Hills of Lakeway Club, which includes one of the top golf courses in all of Texas and the renowned World of Tennis sports complex.

A variety of home plans are available in Tuscan Village, including single-level homes with no steps required; energy-efficient designs and features ensure low utility bills and offer an additional level of comfort for residents. Two- and three-bedroom villas and attached townhomes are available in the development, with open, spacious floor plans that feature luxurious amenities like granite countertops, custom floor treatments, and a deluxe appliance package from Kitchen Aid. Crown molding and ceramic tiles at entryways add a touch of elegance, while deep, oversized bathtubs are available depending on what plan is chosen.

Tuscan Village is designed to provide the best aspects of luxury living to older adults. As part of the resort community of Lakeway, residents enjoy some of the best recreational opportunities and public parks in the area, including four PGA golf courses, sailing on Lake Travis, and numerous shopping centers. With the ample employment opportunities of Austin just a short commute away, homeowners in Tuscan Village truly have the best of both worlds. Residents can enjoy relaxing at home in front of the fireplace, taking a hike through some of the most beautiful country in all of Texas, or taking a drive to the city to enjoy some of Austin’s famous nightlife; whatever the preference, Tuscan Village has a little something for everyone.

By: Joe Cline

Myth #1: You don’t need a realtor when you build a new home because you can save a commission and, therefore, get a better deal from the builder.

Myth #2: You don’t need a realtor since you will be working directly with the builder. The builder will take care of the financing, the title company, and all of the administrative paperwork associated with the purchase of a new home.

Myth #3: Realtors know little or nothing of construction, so why would you need one? A realtor would just be in the way.

Let’s discuss Myth #1:

New home construction prices are generally based on the builder’s cost plus their profit or markup. In most cases, homebuilders either have a marketing budget, which includes commissions or they use a percentage profit or markup which includes a commission. What generally happens when a buyer/client works directly with a builder is that the builder pockets the commission as additional profit. Most builders or their salespersons will advise you that their is no need for you to have a real estate agent. It is important to remember that builders represent themselves; not you as the client.

Myth #2:

Builders will make it seem simpler without a realtor and that having one is really not necessary. This might be true if the builder represented your interests instead of theirs. Do you think he does? Did you know that most homebuilders have their own mortgage and title companies, not for your interest, but for theirs? The builders need their lender and title companies to finance their business and buy your lot and others. This is big business for both of them and be assured that those relationships favor the builder’s interest way ahead of yours.

Myth #3:

Remember the title of this article says “qualified realtor”. The very best arrangement is for you, the buyer, to have a qualified, seasoned, realtor to represent you in a real estate transaction. Would you represent yourself in a lawsuit? Would you represent yourself in probably the largest investment you will ever make…your home? Interview a few realtors to determine their knowledge, experience, and success on new builds. You can ask them to justify the commission dollar wise, but remember, as discussed above, you are not the one who will be paying the commission.

Here are some of the things that a realtor should and will do for you if they are qualified:

- Most buyers will use a builder’s floor plan without consulting an architect. A good realtor will insist on a professional architect’s input. Because architects will introduce ideas and standards that builders want to avoid, builders will almost always discourage a buyer from using one.

- Typically, 4-6 meetings are conducted between the builder and the buyer before a contract is executed. Usually the buyer signs the contract on the spot. However, if a realtor is present, the realtor insists on waiting several days so that additional negotiations can take place. A good realtor may require more than one additional meeting to ensure the buyer gets the best contract price possible.

- Most buyers will do only a walk-through with the builder. A good realtor will insist on an inspection by a licensed professional prior to closing and will attend the inspection with the buyer.

In conclusion, having a qualified realtor to represent your interests when having a new home built is essential. Although the builder will do their best to make it seem otherwise, the commission saved will go back into their pocket and not yours. A real estate agent will keep a detailed account of the builder’s actions and make sure that you are getting the most home for the money. The best part is that there is no additional cost to you. So when you go to buy a new home, find a seasoned realtor. It makes sense.

By: Bill Remington

When Texas is considered, the city of Dallas often surfaces in the minds eye. Apart from having a successful soap opera named after it, Dallas has continued to be a preferred holiday destination for years. Apart from Dallas residents, foreigners and citizens of other states may choose to visit Dallas on a holiday or for a business meet. This could be an annual trip or impromptu. Instead of making reservations at resorts and hotels, visitors may reside in Dallas vacation homes. Dallas vacation homes are cataloged as residential real estate, but that is where the labeling ends. In most cases, they do not serve as a primary residing quarter and are similar to investment properties when their income generating potential is considered.

Most owners use their, Dallas vacation homes for small part of the year during holidays and family gatherings. At times, this is not even an annual event and vacation homes could remain unoccupied for long stretches. This does not reduce the need of maintenance, upkeep, and annual property tax payments. Renting vacation homes during vacant periods proves to be profitable for homeowners. This helps realize cash that is sent on housekeeping apart from proving to be a dependable source of additional income.

Vacation homeowners who do not live in Dallas can hire reputed real estate agents to overlook renting activities on their behalf. These real estate brokers work in correspondence with tour operators who can assist in securing profitable overseas tourist reservations on a regular basis. Tourist groups and large families tend to prefer Dallas vacation home rentals as they provide privacy apart from being capable of housing an entire group. At times vacation homeowners may hire house cleaners, porters, and chauffeurs to cater to guest needs. As such, these homes are similar to service apartments, and rentals are equivalent to star-rated vacation properties.

By: Jason Gluckman

Houston, Texas has had a plethora of apartment construction in several portions of the city and including outlying areas such as Katy, Kingwood, The Woodlands, and Cypress, Tx.?More specifically, the inner loop areas and sections of town near the Galleria have seen loft apartments being built to satisfy the demand renters have shown for these types of apartment units.

Most of the loft apartments for rent revolve around the downtown area and the sections near the Houston Galleria.?Lofts have always been a part of the downtown area.?Hogg Palace Lofts and Dakota Lofts were built in the early to mid nineties.?As far as sheer size, neither property boasts a large number of units.?Downtown has largely been uninhabited unit the last ten years or so.

The area saw an increase in population into the area as a result of the relocation of the Houston Astros into Minute Maid Park in 1999, and the Houston Rockets into Toyota Center not that much longer thereafter.?Two different loft communities were built to satisfy demand for downtown residences recently.?Alexan Lofts and The Lofts at the Ballpark were both constructed earlier in this decade.?Soon to follow Minute Maid Park were a small number of bars that catered to the fans and residents in the area.

The Lofts at The Ballpark is more of a “soft” loft style apartment building. This basically means that there is a partition or separation of the bedroom areas and kitchen or living room.?Most people are familiar with the “hard” loft style.?This is one large room which will contain both your bedroom, living room, and kitchen.?Of course the bathroom should have a separate doorway.

In the last few years Houston has seen some loft construction not only on the exterior portions of downtown, but also in the Galleria area.?In fact the Galleria used to be and remains one of the most popular portions of the city.?Not only does it contain the largest air-conditioned mall in Houston, it is home to many fine popular dining and shopping destinations.?

Broadstone Uptown Lofts was the first loft style community into the area, sporting 223 total units. It is more of a hybrid between a loft property and an apartment community.?Some floors will be carpeted while others have wood floors.?Square footages begin around 659 square feet which resemble more of an apartment.

However, Ventura Lofts, a community west of the Galleria, opened its doors for business in 2008. It has one bedrooms that begin near 1000 total square feet.?

Lofts style apartment living is somewhat new in Houston.?However, given the recent popularity, builders continue to construct these communities to meet the demand.

By: Andrew Reichek

With more than 50,000 properties on the market in the region at present, locating the perfect Houston real estate to buy and call home or even to invest in can prove to be a little overwhelming. Still, the selection is excellent news for buyers who are looking for choice and variety. The Houston real estate market at present holds much potential for buyers.

The problem, however, comes in when trying to pinpoint exact properties that are worth looking at or suit particular needs. This is where a skilled real estate agent can come in. The Chris Wylie Team, for example, can take the running and legwork out of finding the ideal Houston real estate to consider for purchase.

When working with a skilled Houston Realtor, buyers should make a few things clear from the start. Making sure needs and desires are clearly stated will enable a professional agent to assist in the search much better. The agent should be apprised of:

o Budget information – A skilled real estate agent will likely ask this up front, but to make the answering easy, consider getting pre-qualified so a search can be focused on properties within the right price range.

o Size and specifications – Looking for a home in the Houston real estate market can be like searching for a needle in a haystack unless specific details about what is desired are shared. Think size, number of rooms, amenities, location, style and neighborhood type to help guide a good agent in the right direction to find a home that suits. If an agent is only told three bedrooms and two baths, but no other details, chances are the professional’s ability to find the “dream” property will be hampered greatly. The more details provided about desires and needs, the better.

o Other considerations. If a set time frame to find a home in the Houston real estate market and move in is important, make sure to share the schedule. This can help an agent better serve.

Finding a home that appeals in Houston’s real estate market is easy thanks to the choices available. Locating the perfect home, however, often requires assistance from a skilled and knowledgeable real estate agent that understands the market and community. It pays to look for assistance from the pros.

By: Chris Wylie

A new article on June 3, 2009 from MSN Money writer Michael Brush indicates that there is a third wave of foreclosures still to come from prime borrowers (i.e. those previously “safe-borrowers” with sound credit and fixed-rate mortgages) as a result of job losses thanks to the worsening economy (“Coming: A 3rd Wave of Foreclosures”).

The article states that “In the first quarter, the percentage of these borrowers who were behind on their mortgages or in foreclosure had doubled from a year earlier, to nearly 6%” and goes on to say that “Credit Suisseanalyst Rod Dubitsky predicted last week that 8.1 million mortgages, or 16% of all mortgages, will go into foreclosure over the next four years. A weak economy, continued declines in home prices and rising delinquencies among prime borrowers all but ensure that foreclosures “will march steadily higher,” he says.” Not such great news for the economy, but good news indeed for entrepreneurs interested in starting a foreclosure cleanup business to clean and repair foreclosed homes for the banks.

To put this in perspective, this means that there will be over 2 million foreclosures a year and more than $2,025,000,000 up for grabs in money that will be spent on cleaning up these foreclosed properties (since the average bill is $1000+ to clean up one of these properties).

Let’s take a look at how you can position yourself to capitalize on this coming foreclosure movement

Set Up Your Company Properly

If you want to be hired for cleanup or preservation work, you’ll need to operate your business as a professional company. The good news is that you can set up a business quickly and inexpensively, and usually on your own. Many people decide to set up an LLC (Limited Liability Company) because of how quickly and easily it can be done but you’ll want to check with your accountant or other business professional to select the type of business entity that’s right for your personal situation.

If you do decide to start an LLC, you can usually find all of the documents you need online from your state’s government website. Usually the branch you’re looking for will be called the “Industrial Commission” or “Corporation Commission” or similar. Try typing in “start a business + ______ (your state)”. Anything ending in “.gov” is usually a good place to start as it indicates a government site.

Once your business is set up, you’ll need an Employer Identification Number (EIN), which is like a SSN for your business. You can register for one online: type in “IRS” & “EIN” into a search engine to find the online registration link.

As soon as you have your EIN (which you can usually get immediately online), you can open up a business bank account for your company. This step is very, very important. In the excitement of things, many people get caught up in the day-to-day dealings of running a business and use their personal accounts to pay for business expenses. Not only does this present an accounting nightmare at the end of the year, but it could present problems for you with the IRS if you don’t keep your personal and business finances separate.

Once you legally set up your business, you may be required to register your business with your county or city in order to get a business license to operate. You can start by calling City Hall or the Office of the County Clerk to inquire as to whether or not you need a city/county/state business license and if so, how to get one.

So to recap:

1. Legally set up your business
2. Get your EIN # and set up a business bank account
3. Apply for a business license
4. If you want to do preservation work, determine whether or not you need a contractors’ license

Get Insurance

You absolutely must have a Commercial Liability Insurance policy and Workers’ Compensation Insurance in order to run your business. Not only is insurance essential for protecting yourself from liability and protecting those that work for you in the event of a work-related injury, but many asset management companies will not do business with you if you do not meet their minimum insurance requirements.

Insurance will likely be one of your largest start-up costs, however, most insurance companies allow you to pay the premium on a monthly (rather than yearly) basis, which definitely makes this expense more affordable.

General Liability Insurance policies can cover the following: bodily injury, property damage, contractual liability, personal and advertising injury, professional liability (also known as Errors & Omissions (E&O) insurance, this coverage protects you and your business from litigation caused by charges of professional neglect or failure to perform your professional duties), hired auto and non-auto liability and umbrella liability.

You’ll want to speak directly with your insurance agent to get a better idea of the extent of the coverage provided by their particular policy and one that is best suited for your individual needs

Workers’ Compensation Insurance is required in most states when you have W2 employees, and some states also require your insurance to cover your 1099 contractors also. Workers’ Compensation (“Workers’ Comp”) covers your employees’ medical and disability expenses related to work-related illness and on-the-job injuries.

In the states where you are not required to cover your 1099 contractors you would need them to provide proof that they carry their own Workers’ Compensation insurance. Although tempting to shift the financial burden of maintaining a policy onto your 1099 contractors, in all reality, you are probably better off to take on the cost of all staff Workers’ Compensation (all W2 employees and 1099 contractors). The reason is that it’s difficult to find only independent contractors that have their own policy. In addition, this industry has such high turnover that if you put this restriction on your independent contractors, you’ll waste valuable time and lost revenues trying to find replacements in a hurry.

Here’s a great tip: sometimes you can get “pay-as-you-go” insurance where your workers’ compensation insurance premiums are based on your actual payroll, rather than an estimated amount. This is great for companies that are just starting out or have a fluctuating workload. Type in “pay as you go workers comp” into a search engine for results in your area.

As a second tip, we’ve used Farmers Insurance for years and have always had excellent customer service and great rates. Just Google “Farmers Insurance” for an agent in your area.

Foreclosure Cleanup v.s. Property Preservation Services

As the name suggests as a Foreclosure Cleanup Company, you’ll be cleaning out all of the junk in the house (also called a “trashout or a “junk out”), as well as cleaning the interior of the home. You may also be required to remove vehicles on the property. Usually foreclosure cleanup companies are also responsible for doing a basic landscape cleanup which includes hauling out any junk from the front/back yards, cutting the grass and trimming trees/bushes.

Cleaning up the property is the extent of services offered by a Foreclosure Cleanup Company, whereas a Property Preservation Company is also involved in the “securing” of the property and the “preserving” of the property.

Here are some of the services that a preservation company may offer (note that a Property Preservation Company will generally also offer cleanup services):

Securing the Property
o Initial vacant property inspection
o Lock changes
o Boarding of windows and doors
o Temporary roof repair
o Securing swimming pools

Preserving the Property
o Exterior Debris removal
o Abandoned vehicle removal (cars, boats, etc.)
o Interior Debris removal (junk-out)
o Hazardous waste removal
o Interior cleaning services including carpet cleaning
o Window washing/graffiti removal
o Window replacement
o Pool services (draining, acid washing, maintaining, etc.)
o Pest control services
o Yard maintenance/landscaping
o Snow removal
o Winterization
o Gutter cleaning
o Pressure washing
o Carpet removal & replacement
o Tile/Floor repairs
o Painting
o Sheetrock/drywall repairs
o Carpentry repairs
o Plumbing fixtures repairs & replacements
o Fire & mold remediation
o Fence repair

Here are a few things to consider when determining the extent of the services you want to offer:

A Contractors’ License is generally not required for Foreclosure Cleanup Company but is likely required for preservation companies doing work over a certain dollar value (usually $500 – $1000+). Sometimes this license can be obtained by attending a course and successfully passing a test whereas other states require previous, verifiable industry experience.

The insurance premiums tend to be higher on companies that offer preservation services as they are considered to be a “general contractor”. However, the revenue potential is much higher as preservation services tend to run from a few thousand dollars upwards instead of $800 – $1500 for each cleanout.

Usually what people do is start out initially offering just the foreclosure cleanup services and then when things pick up, they’ll add preservation items to the list of services they offer. This let’s them get their foot in the door without having to spend a whole lot of money upfront when setting up their company.

Source the Right Equipment & Tools

The great thing about starting a foreclosure cleanup company is that the initial expenses are quite low as much of the equipment and tools needed for cleaning foreclosures can likely be found in your own garage:

o Cleaning chemicals (i.e. all purpose cleaner, disinfectant, toilet bowl cleaner, window cleaner)
o Cleaning supplies (broom, mop, scrub pads)
o Vacuum cleaner
o Garbage bags and shovels
o Work gloves and disposable plastic gloves
o Lawn mowers & lawn tools
o Wheelbarrow

For the smaller items you don’t have on hand, check your local dollar store. Their prices can’t be beat and they usually have the same chemicals and cleaning supplies as the other retailers. Once you start doing some volume, consider shopping for your supplies at Sam’s Club or Costco to keep your expenses low.

You can also find used equipment in great shape (such as vacuums) by going around to your local Saturday morning garage/yard sales. If you have a “Re-Use” center or a Salvation Army, you may consider checking there also as they often have vacuums and other small equipment or yard tools for sale.

For hauling junk, you’ll need some sort of trailer and a vehicle large enough to pull it. If you don’t have a truck and a trailer, you can always borrow a friend’s truck and rent a trailer from U-Haul or just go ahead and rent a moving truck from U-Haul. (Remember though, that you’ll be charged a daily rate plus a per-mile rate when you rent a moving truck whereas if you use your own truck and just rent the pull-trailer, you’ll only incur the daily rental rate for the trailer.)

Sometimes you’ll be required to clean a property that doesn’t have electricity or water. In the event that there’s no electricity, you’ll need a generator to operate the vacuum cleaners and other electrical equipment. These can be rented at Lowe’s or Home Depot and is a much better alternative to purchasing one outright unless you’re going to use it on a regular basis (a new one will run you about $500+).
To save on expenses, it’s best to rent equipment in the beginning.

Once you get up and going, it may be worth looking into purchasing equipment of your own. Check the online classifieds ads (such as Craigslist, Kijiji and Backpage) for used trailers, generators, etc. You should also check with U-Haul as they have been selling some of their excess trucks as of late.

Stay Safe on the Job

As a business owner, you’re responsible for keeping your staff safe while working on the job. Working safely is paramount to the health of your staff and the reputation of your business (and also keeps your insurance premiums low). It’s imperative that you review safety issues prior to allowing anyone to work on the job – you must provide both classroom and on-the-job safety training to all new hires.

Now, it doesn’t have to be anything fancy; you can spend 20 – 30 minutes reviewing safety policies, safe working practices and answering any questions and then you’ll be done! Make sure you have people sign in and out of the meeting and that you document that a safety meeting took place.

It’s also very important that you become familiar with OSHA and Safety Standards as well as the health & safety hazards associated with this industry so that you can keep your staff safe, avoid accidents and costly fines. You can find the OSHA Pocket Guide to Construction Safety (it’s a short and an easy read) at the main website (OSHA DOT gov) by searching for the report name.

Another way to protect your staff and your business is to make sure that you check references before you hire someone. Insist that they list non-related references (i.e. not mother, sister or best friend) and instead list references of previous employers or someone they know in a professional capacity. We also do drug testing and background checks – it might sound paranoid to some, but the safety of our staff, our customers’ property and our company’s reputation is far too important to risk not spending $20 on a background check or drug test.

Price Your Services Right

In this industry, the lowest price always wins the bid (unless, of course, the lowest bidder has a terrible track record of not completing work and is utterly irresponsible and unprofessional, in which case the company has just committed “reputation-suicide” and will never be hired again). Lenders don’t want to spend any more than they have to on these properties so you want to make sure you price your services comparable with the going market rates (but at the same time, priced so that you still make a great profit and don’t leave any money on the table).

For cleaning out foreclosures, most banks expect to spend anywhere from $500 – $1500 for a cleanout (trashout, interior clean and initial landscape cleanup), but it could be a bit more or a bit less, depending on your area. It’s important to know that most lenders have prescribed “price caps” for the maximum amounts that they’ll pay for services.

If you’re also providing preservation services, a great site that we’ve used before to determine our prices for doing repairs is www.CostEstimator.com for getting the market rates for construction costs – you can get a free 30 day trial (no need to enter credit card – it really is free!). There are over 3,000 cost items adjusted for over 210 local, geographic regions to create your bid and you can add as many others as needed. If you want to sign up after the trial, it’s only $15/month.

Market Your Services

It’s true – “nothing happens until somebody sells something”… and you’ll need to get out there and sell, sell, sell your business. Once you’ve done a few jobs, you’ll find that word of mouth advertising and referrals will provide a large pool of new jobs for you, but in the meantime, you do need to do everything possible to let customers know you exist.

A large portion of work will come from the relationships that you build with Real Estate Agents (“Realtors”) who list bank-owned homes (often referred to as REO listings). They are often given the task of bidding out the cleaning and repairs of new listings by the asset management company so you’ll want to make sure the agents in your area know your company handles this type of work.

A great way to find out which Realtors in your area list REOs is to go online to the major bank’s REO websites and “data mine” the contact information for the listing agents (name, email, phone numbers). It can be painstaking work, but definitely worth it.

Here’s an example of a bank REO sites to get you started collecting Realtor information

WELLS FARGO (Properties managed by Premier Asset Services): pasreo.com/pasreo/images/pas_logo.jpg

NOTE: In order to access agent information, select the state and click search. Then, individually select each listing and click on “Print Property Report CVS”. Each listing and corresponding information (such as agent name, phone # and email) will be created in an Excel spreadsheet. You can access the page

Remember to follow up with a phone call a few days later. Don’t be shy about asking the Realtor if he/she has any jobs for you to bid, either – most of them are very accommodating and willing to give a new company the opportunity to provide estimates.

The other way jobs are bid out is through large Asset Management Companies (also referred to as Marketing & Management Companies, REO Field Service Companies and Property Management Companies). Essentially, the lender says, “ok – I have thousands of properties to get rid of. Here, national ABC Asset Management Company: clean, fix and sell these properties for us”. And the national Asset Management Company will then subcontract out the work to local foreclosure cleanup and property preservation companies. In order to work for these companies, you usually need to sign up your company as a potential vendor. Many times this can be done online.

There are both positives and negatives associated with working for the larger companies. On the positive side, you will probably be given a few projects to work on at a time so you will be kept relatively busy. On the negative side, they usually want you to offer ‘wholesale pricing’ and don’t pay until 30 – 60 days after you invoice them for the work. Working for one of these companies, however, will give you the experience you need to go after more work.

Other possible customers include wholesale property investors (groups of investors that purchase foreclosed homes at the auctions and then sell them to smaller investors at a wholesale price), investors, landlords, property management companies, Realtors and so on.

You should also consider attending your local networking events such as the Chamber of Commerce meetings and any local investor meetings in order to hand out your card and network with potential customers. The more you get out there, the better chance you’ll have of securing some great, long-term customers!

This is definitely an exciting industry and a very profitable one for those of you who don’t mind getting your hands a bit dirty! Good luck!

By: Les Tyler