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Property Management by Scott Bolinger
Copyright in 2011
All rights reserved. No part of this book or CD maybe reproduced in any way, shape or form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system without permission in writing from the author Scott Bolinger. If bought as a ebook, you may make one hardcopy. The forms and tax forms maybe copied as many times as needed for the person that bought this book.
The publisher and author of this book are not responsible in any manner whatsoever for any income loss. What is stated is several ideas that has worked in creating income. Sometimes it takes money to make money.
Address: 507 Niobrara
Alliance, NE 69301
Phone: 308-760-7346 Email: firstname.lastname@example.org
Revised in January 2013
About the Author
Scott Bolinger has been a business owner for over 15 years, and has been investing into investment properties for over 10 years, and started in preservation work and field inspections in 2006. He has a background in Carpentry, locksmith and masonry that started in the AirForce in 1987. The property investment went from starting from scratch to over $500,000 worth of investment property. Is a author of several books, business books, martial arts books, self defense books, and history.
Iíd guess since you decided to buy a copy of this book that youíre a business minded person that wants to get straight to the point and create an additional cash flow. There are several ways to create income in property management. The business Iíll be going through is as a Contract Inspector and there are many aspects of a contract inspector that covers field inspections , property verifications, merchant site inspections and preservation which consists of contract work with asset companies to bring foreclosed property up to FHA/HUD regulations, and some standard tidbits of property management. You donít have to do everything, but I find it best to diversify your income. The companies you would be working with are contracting companies that work with mortgage companies or realty brokers, asset companies and banks and in some case you might work directly with the mortgage company. Primarily what a field inspector would do is perform property verifications. This would have you going out to a property and verifying that someone still lives at the property in which you would take one picture of the front of the house, maybe a pictures of the address and down the street or to do interior and exterior property inspection of a property that isnít occupied and you would take pictures on all sides of the outside of the building and two pictures per room and place bids on anything that makes the building non-compliant (not up to FHA code). For the preservation work you would make sure that the building is secured and complies with FHA guidelines. For the Preservation work you would take pictures of all sides of the house, then 2 pictures per room in the interior. Your usually given a list of tasks and you would take before, during and after pictures of work that was approved to be completed. For preservation work you would be primarily doing winterizations, securing a property, yard work, maid service, disposal of hazardous materialÖetc. Some times the preservation work isnít just limited to FHA guidelines, some times the mortgage companies, realtors or asset companies may have general remodeling that they want done, or maybe the city building inspector may have written up work thatís needed done, which would get approved through a asset company.
Intro To Property preservation (page 5)
Pg. 5 Intro
Pg. 6 Definitions
Pg. 11 Business management
Pg. 13 Resume
Pg. 14 Pricelist
Pg. 16 Bundle
Pg. 18 Taking pictures
Forms (page 21)
Pg. 22 Property Verifications
Pg. 24 Yard Maintenance
Pg. 30 Property preservation update/bid form
Pg. 37 Work completion form
Pg. 38 Sign in sheet
Pg. 39 Maid service
Pg. 49 Winterization
Pg. 58 Tips and Tricks
Tax Preparation (page 62)
Pg. 62 Tax Preparation
Pg. 64 Mileage log
Pg. 65 Expenses
Pg. 66 Money Made
Pg. 67 Office Supplies
Pg. 68 Utilities
Property Management (page 70)
Pg. 71 Property Management
Pg. 74 Property management tips
Pg. 76 Residential Lease Agreement
Pg. 80 Example Business Plan
Intro To Property Preservation
In property preservation there are two basic aspects of the job. There is the field inspector that will do a general inspection of the property. Either just a outside inspection to do a property verification to see if someone still lives at the property or if its been abandoned. Along with the field inspector side of that business is the interior / exterior inspection which you are mainly looking to see if the place is still secured, if there is any safety hazards, roof leaks or water leaks that could cause more harm to the property. And then there is the maintenance part of the preservation which would be to secure a property, winterize, recurring yard maintenance, recurring maid service and bring a house up to FHA code. On the first interior / exterior inspections you want to do a pretty good inspection of everything and if your not approved to do the work, then you make bids to do the work. Some pricings are pretty standard. Like lock changes, installing a lockbox, installing hasp and lock, dry winterization. But some things may have some flexibility like debris removal, initial yard maintenance and maid service. So in certain circumstances, you might consider one bid set out with separate prices with the total, then a total bid as a bundle package with a discount for the packaged deal. I do have a standard list price in this book, I wouldnít go much out of that range. Things youíll have to consider when doing your bid , is travel, material expense, and room and board if you have to stay out of town for 2 or 3 days.
In the next few pages there are definitions of the different inspections and what the standard is on those.
Drive by inspections (property verification): on this type of inspection, this is just to see if someone is actually still living at the property. And you take one pictures of the front of the house, one of the address and one showing down the street. The form you get for this type of inspection will general ask a description of the house which would cover type and color of siding, type of covering on roof, estimate value of property, visible personal property, any broken or boarded up windows or doors.
house inspections: this would be a interior and exterior inspection. Take pictures of the outside and all for sides of the house, then take two pictures of every room, and picture of the ceiling of each room. Jot down any issue that would be needed to bring the property up to compliance (securing property, boarding windows or doors, removal of hazardous materials, , property inspections, any safety hazards, trip hazards, rails needed on stair way, yard maintenance)
merchant site inspections: this would be a inspection on a business to make sure itís legitimate. Usually consist of 5 exterior and 5 interior pictures, making sure you take a picture of all 4 sides of the exterior of the building and pictures of the sign. In the interior youíll usually need to take pictures of the general business area, main office, picture of where secured documents are kept (usually a file cabinet), and inventory. A lot of times youíre there to qualify a company to use or continue use of credit cards, so youíll take pictures of the credit card machine. The inspection is basically the check to make sure the business is legitimate. Iíve had several for auto sales to qualify them to be able to contract with a company that does back ground checks, so that they can set up the loans themselves.
inventory inspections: inspection of inventory, taking pictures and writing down serial numbers to confirm correct item
insurance inspections: inspection of a building that has had weather damage. Usually have to have a minimum of 5 pictures. collateral inspections, rush inspections, construction site inspection, occupancy inspections, commercial inspections and delinquency inspections. Out in Nebraska, I get a lot of inspection for hail damage and most common is roof repair, siding, gutters and down spouts. Youíll take pictures of completed work and work that still needs to be done and weather or not there satisfied with the work that has been completed and then you post what percentage of the work has been completed.
collateral inspections: this would usually be for construction equipment that someone has rented. The last one I did was a excavator. Youíll need to take several distance and up close pictures of all sides of the equipment and of the serial number.
rush inspections: a rush inspection could be any of these types of inspections but youíll general have 48 hours to complete. But youíll charge a higher price for the limited time frame
construction site inspection: This maybe a few different things, maybe a percentage of completion on a job, or a equipment inventory.
occupancy inspections: same as a drive by inspection. Just verifying occupancy
commercial inspections: this could be to verify the legitimacy of the business just like the merchant site inspection or inventory inspection
delinquency inspections: these are usually on vehicles and you would general take pictures of all sides of the vehicle and the vin number and do a interview
Preservation and REO: generally when called on this type of inspection, it maybe assigned as a preservation work order. This could be on an abandoned house that went back to the mortgage company, reversed mortgage, or foreclosed property, or a property that a broker bought and contracted you to do a initial. A initial would be a first time clean, yard maintenance, secure, debris removal, winterization if in season. So you would go in and secure the house. Change the locks to a specific key code and secure any out buildings (garage, shed), secure any pools or hot tubes and install a lockbox if the work order has that listed. Depending on what time of year it is, you maybe required to winterize a property by disconnecting pipes at the water heater, disconnect the water meter, blow out the lines, cap the feed line, clean the toilets, pressure test the lines, then poor RV anti freeze in each drain. Some work orders may approve fixing roof leaks, removal of debris, maid service, yard service boarding windows, doors, pet doors. You may have just a couple things approved, then youíll have to write up bids for everything else to bring the property into compliance.