Going Direct - REO Property Preservation Forum
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post #1 of 3 (permalink) Old 05-13-2016, 11:35 AM Thread Starter
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Going Direct

So after much reading, the general consensus is on going direct and steering away from the middle men. Sure. Contact some brokers and see if they aren't already using a middle man / vendor.

There's plenty agents out there looking for assistance. Dealing with one vendor doesn't mean they wouldn't deal with any others. Especially if it's a need for some in areas their current vendors don't always get to ( too far away), or if the price is better on the new soliciting vendors side.

The banks either already have their own expected prices, or they will want to see various bids from multiple vendors before deciding who to use.

So if you're putting in your bids, either per job / property, or a blanket price sheet for every type of service you provide, then what's the best way to gauge what the average accepted price is to give you a good idea of what your prices should be?

I've heard some say the rule of thumb is to multiply whatever prices you get from the middle men by 3 and that's normally what they're making before they take their cut. So a $30 yard cut may very well be priced at $90 per property, as an example.

Is there any truth to that rule of thumb or is there a better guide to look up?
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post #2 of 3 (permalink) Old 05-13-2016, 04:23 PM
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Originally Posted by GitRDone View Post
So after much reading, the general consensus is on going direct and steering away from the middle men. Sure. Contact some brokers and see if they aren't already using a middle man / vendor.

There's plenty agents out there looking for assistance. Dealing with one vendor doesn't mean they wouldn't deal with any others. Especially if it's a need for some in areas their current vendors don't always get to ( too far away), or if the price is better on the new soliciting vendors side.

The banks either already have their own expected prices, or they will want to see various bids from multiple vendors before deciding who to use.

So if you're putting in your bids, either per job / property, or a blanket price sheet for every type of service you provide, then what's the best way to gauge what the average accepted price is to give you a good idea of what your prices should be?

I've heard some say the rule of thumb is to multiply whatever prices you get from the middle men by 3 and that's normally what they're making before they take their cut. So a $30 yard cut may very well be priced at $90 per property, as an example.

Is there any truth to that rule of thumb or is there a better guide to look up?
What does another company's pricing structure have to do with anything? Basing it off of a percentage of, or a multiplier of any other variable is not a viable condition to build YOUR client base. Your costs are YOUR costs, not theirs and vice versa. You should be determining your pricing based on your needs/expectations/expenses. Never rely on others to set your "standard pricing". The money is made in the ability to Over Deliver and Under Promise, let the dillweed's out there do it the other way. I laugh at those that promise this and that and completely under deliver. That is when you can pounce, start at a modest profit margin and once trust and a relationship are established slowly creep your pricing up. Shooting for the stars right out of the gate is foolish.
Just my .02
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post #3 of 3 (permalink) Old 10-09-2017, 10:18 PM
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So would this advice apply to starting out with regionals and then moving to nationals?


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