In this episode, Teddy talks with a client who is representing a buyer who wants to buy a house with a leaking underground oil tank. The buyer is looking for a fixed price for the project.
Questions Asked…….
- Do you guys offer a flat rate or fixed price for remediation? 1:25
- How can I get a fixed price? 2:15
- How long is the price good for? 3:15
- Does the initial cost of $600 get credited back to my account? 3:30
- What are the payment terms? 3:50
Speaker 1:
Hey, sorry about that, Teddy.
Teddy:
Yeah, no worries. What’s going on, man? How can I help you out?
Speaker 1:
Well, I was referred to you by Saeed Hammond Group.
Teddy:
Oh, yes. Yeah. I do a lot of work with Saeed.
Speaker 1:
Yep. So we have a house. I have the buyer, and they have the short sale listing. And they did disclose that there was an oil tank, but they said it was empty. We went to the property, and we think that the property is basically contaminated.
Teddy:
What’s making you think that? Do you have any kind of lab results that were done or?
Speaker 1:
Yeah. Yes, we do. We do. My guy Raul, who does my oil tank sweeps and he also do the testing, it was 1,100 gallon tank. And the problem was that it was filled with water. That’s what the tank was filled with. But the soil testing came back contaminated.
Speaker 1:
So what we were trying to do was see who’s going to pay for the removal and for the remediation. And they had proposed that you guys do a flat rate?
Teddy:
Yep. Yeah. We can help you with that. So essentially, you’re trying to get the bank to pay for it, and you want to get a proposal for a fixed price? Is that kind of what you’re looking for?
Speaker 1:
That’s kind of what we looking for. Now, the thing about it is, the short-sale bank, they’re not going to pay for it. That’s what I’m being told.
Teddy:
Yeah. Usually, [crosstalk 00:01:50] as is. That’s exactly why we have this program, to be honest with you. It’s for investors. I mean, we’re very investor friendly. We came out with these programs for people that are in your exact position, because as you probably know in the industry, it’s very common to get what’s called an open-ended contract, and they could quote you at eight grand and then you buy the property and it costs you 30 or 40. So that doesn’t happen with us.
Teddy:
The way that it works is we charge a fee, it’s $600 to come out. We do a soil investigation that consists of us determining how deep that contamination is, how far out it traveled. We determine if groundwater is impacted. We determine if it’s under any structures, if it’s offsite, all those data points we need to gather. And then we could come back to you with a fixed price contract. That price does not fluctuate. It’s an all-inclusive contract, guaranteed, no further action letter, unlimited amount of soil that gets disposed. It’s all included in that price. So there’s no gimmicks, there’s no catches. I know there’s another company right now that’s giving a flat rate, but it only includes 20 tons. Anything over that you’re responsible. So it’s not a true fixed price. So our contract is a true fixed price. It will not fluctuate. So if the deal makes sense, and I come back to you with a quote. Hypothetically, it’s $12,000. That makes sense for your deal, you close on it. We come and do the work afterwards, and that price is not going to change.
Speaker 1:
Oh, okay. Okay. All right. And that price won’t change.
Teddy:
No, yeah, it doesn’t change. It’s a fixed number. Once I give it to you, that’s good for six months. I mean, as long as you close and get it done within six months, that number is not going to change.
Speaker 1:
Okay. All right. All right. So I just wanted to get a little bit of information from you. So to come out, it’s $600.
Teddy:
Correct. And that 600, we will apply as a credit towards your file if you decide to move forward. So 600, well, if it’s a $10,000 quote, you would only owe us 9,400 bucks. So it will get applied as a credit.
Speaker 1:
Okay. And do you need all monies upfront or what is the?
Teddy:
Well, tell me what you’re doing. So is this a flip for you? Are you going to renovate it and flip it?
Speaker 1:
No, this is an actual buyer, a client who’s looking to be an owner occupant.
Teddy:
Okay. So yeah, in that situation, yeah, the way that it works is we would get a 50% deposit before the job starts. And then after the site work is complete, we ask for the balance. Typically if you were representing a seller and you had a buyer involved and there was a closing coming up, we could arrange to get paid at closing. But in this situation, I mean, unless there’s some way you could get money put in escrow from the closing, from the seller, I mean, I don’t know how you would do it, but yeah, typically we get paid 50% up front and then the balance after the site work.
Speaker 1:
Okay. All right. Now, I got to figure this out because I’m trying to bring both sides together. Well, at least tell my buyer, hey, they are willing to go lower on the price. So you get in on the back end.
Teddy:
Well, exactly. And what we can do is [crosstalk 00:05:06] the bank. So I’ll work for you, man. We’re real investor friendly. We’re trying to make it work for everybody. And we do accept all major credit cards as payment and obviously checks and cash as well.
Speaker 1:
Okay. All right. Thank you. I appreciate you. I have some information to take back to her.
Teddy:
All right. If you have any questions or if they want to call and have any questions about the process, feel free to have them give me a call.
Speaker 1:
Will do. Thank you.
Teddy:
All right. Thanks. Bye.