Are Agents acting as a General Contractor when repairs are made?
As I'm around and about quite a bit.. I have seen a pattern of the agents "coordinating" repairs.. to the extent that I wonder if they are acting as a General Contractor.
The state that I'm in.. California, I'm nearly certain that they are.
We have * a lot * of REO's that are being "fixed up"... Is the risk worth the reward?
Well then, what is the concern?
Well, quite frankly, depending on the area you live in... you could be violating the law or *even committing a crime*. Is is worth risking what you have worked for to gain the "approval" of the banks? Do agents really think that the banks will stand by you if you are stung?
- Does the person in charge know if the folks helping are licensed? What are the implications if they are not?
- Do you know exactly what improvement require permits? What are the reprocussions if you don't obtain proper permits?
- And worse yet... what if someone gets hurt? Are *you* responsible? If the "helper/trade/sub contractor isn't licensed and the money is passing thru YOUR HANDS.. YOU MAY BE RESPONSIBLE
I have asked a couple of agents that I know.. simply because I was concerned that they may not know what they are doing if they realized that they are throwing themselves under the bus... the responses have been (and incorrectly so)
- "I'm only the person paying them.. I have nothing else to do with it." <-- Wrong, if you are writing the checks... you're the BOSS!
- "It's the only way I can get the listings from the Asset Managers, if I don't get *everything* done, I'm less likely to keep getting listings" I'd have to ask... "Is it worth it?"