New to the Industry and looking for Tips - REO Property Preservation Forum
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post #1 of 14 (permalink) Old 06-11-2016, 10:46 AM Thread Starter
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New to the Industry and looking for Tips

Hello all , I am new to the industry and looking for starter tips. What you wish you knew when you started in the industry, do's and don'ts. I currently work a full time office job and I hate it . I've flipped 2 houses and own 3 rentals currently so I know my way around a hammer and pipe wrench . I just got my DBA and I am insured . I was thinking If I could land a couple trash outs with minor repairs and lawn cuts I could quit my office job and give it a go. I have no employees either so it's just me for now. Any advice would be appreciated Thanks
Jeremy
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post #2 of 14 (permalink) Old 06-11-2016, 10:58 AM
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Hello all , I am new to the industry and looking for starter tips. What you wish you knew when you started in the industry, do's and don'ts. I currently work a full time office job and I hate it . I've flipped 2 houses and own 3 rentals currently so I know my way around a hammer and pipe wrench . I just got my DBA and I am insured . I was thinking If I could land a couple trash outs with minor repairs and lawn cuts I could quit my office job and give it a go. I have no employees either so it's just me for now. Any advice would be appreciated Thanks
Jeremy
I would keep the office job until you can do nothing but flip for yourself. Think about this? How long does you average flip take? 21-45 days depending upon complexity? So you wrap up 100k and make minimum 30%. In this industry you will wrap up more than that in 30-120 days waiting on payments. Then you will have to do everything their way or guess what no payment. Once you have jumped through those hoops to get the orders accepted and processed, now you have to remind them every week that they owe you that money and hope they pay.

A monkey can use a pip wrench or hammer. This business is about pictures, bids, exposure, liability, and working for wages below what any contractor in the phone book would charge.

You seem to have your life together. Ask yourself a few questions. "Why would they need me or my company when the phone book is FULL of experienced licensed guys?" Would you call a heart surgeon who just got his DBA? They want CHEAP they want a minimum fix. They don't want it done right and they definitely don't want to pay for it.

Do you think you can make a good living coming into an industry filled with bottom feeders and trying to go even lower on pricing?

Forget quality because NONE of these companies really care. They care about Statewide coverage and turn around times.
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post #3 of 14 (permalink) Old 06-11-2016, 11:27 AM
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Hello all , I am new to the industry and looking for starter tips. ...I've flipped 2 houses and own 3 rentals currently so I know my way around a hammer and pipe wrench.
Vendors are not going to wait for you to get to the job because of your day job. You get an order, and they want it done yesterday.

Why not continue to flip and expand your real estate portfolio? I'm presently doing just that - Buying investment properties and now working only with local people. There are no regional or national jobs for me anymore.

It's a ton easier to get into the circus here if you already do contract work. Giving up a guaranteed pay check (Even if it's from a job you despise) is extremely risky. CH had a great point: Why do you think these vendors would take someone green to the industry instead of someone who has experience?
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post #4 of 14 (permalink) Old 06-11-2016, 12:00 PM
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Hello all , I am new to the industry and looking for starter tips. What you wish you knew when you started in the industry, do's and don'ts.
Jeremy
You are about 8 years late to the table.

I'm a handshake type of guy. My word is my name. I wish I knew the extent to which there are no ethics, morals or even the intent to hold good on an agreement in the preservation industry.
Chase down an out of state client who won't pay, doesn't return your calls, your emails, your letters. Only after contacting the bank of record and making known your intent to lien and file civil suit does the client sent over a w9 and a contractor agreement. Yeah, they never intended to hear from most of the fools again after they scooped up their pics.

Rule #6 in flipping/buying investment property- You make all your money the second you close.
Rule #13 in Preservation. ROI only happens when you actually get paid.
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post #5 of 14 (permalink) Old 06-12-2016, 11:19 AM Thread Starter
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Thanks for the feedback

From what I read on the forum working for nationals or regionals is an absolute NO. I was thinking of soliciting local banks for trash outs and mows , you guys still think I should keep my office job though. From what I read the money is in the direct jobs and not subbed out.
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post #6 of 14 (permalink) Old 06-12-2016, 01:33 PM
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From what I read on the forum working for nationals or regionals is an absolute NO. I was thinking of soliciting local banks for trash outs and mows , you guys still think I should keep my office job though. From what I read the money is in the direct jobs and not subbed out.

Every guy in this business is already soliciting those banks and realtors etc. you can break through but it will take some time. Make sure you have 6-12 months of living expenses set aside before you quit your day job.

It's a fickle business and it can change in an instant. Most of my realtor clients are being forced to use nationals for their work at the moment. It has hurt us financially. We are still trying to figure out how to adjust. The second you find your groove something changes. It's a very fluid industry.
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post #7 of 14 (permalink) Old 06-13-2016, 10:41 AM
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From what I read on the forum working for nationals or regionals is an absolute NO. I was thinking of soliciting local banks for trash outs and mows , you guys still think I should keep my office job though. From what I read the money is in the direct jobs and not subbed out.


Continue on with flipping. Industry dried out. Find guys that need some work and work with them on these houses and keep your job.
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post #8 of 14 (permalink) Old 06-15-2016, 06:21 PM
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Originally Posted by JNC Investments View Post
From what I read on the forum working for nationals or regionals is an absolute NO. I was thinking of soliciting local banks for trash outs and mows , you guys still think I should keep my office job though. From what I read the money is in the direct jobs and not subbed out.

If you've read as much as it seems you have, and yet you still want to move forward in this biz...then who's to steer you away? People in general are stubborn and set in their ways, just post back here in 18 months with your outlook on this industry then.
I for one will be very curious to hear your take on it. You can lead a horse to water....
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post #9 of 14 (permalink) Old 06-15-2016, 09:13 PM Thread Starter
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If you've read as much as it seems you have, and yet you still want to move forward in this biz...then who's to steer you away? People in general are stubborn and set in their ways, just post back here in 18 months with your outlook on this industry then.
I for one will be very curious to hear your take on it. You can lead a horse to water....
I have reconsidered, as much as I hate my office job. I will continue to do that and do flips and rentals part time. I have signed up for a property inspection website that pays $25 for pictures and evaluation and I think this may get me an edge in upcoming forclosures. even if this nets me $400 a month its a revenue stream on top of my full time job...my two year plan is to do one more flip and buy two rentals outright so i can be self employed off the rents from my 4 properties that will have no mortgages. at that point i will revisit the industry along with small contractor jobs and sub contracting. Thank you everyone for your great insight and I will continue to be on this forum to monitor what is going on in the industry.
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post #10 of 14 (permalink) Old 06-16-2016, 12:24 AM
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I have reconsidered, as much as I hate my office job.
Did hell just freeze over? Never heard anyone think this way!

In all honesty, building your real estate portfolio to the point of self-sufficiency is the way to go. Why bust your ass in a job that never pays you what your work is worth, when you can flip houses and rent properties out?

Sorry to hear you hate your job so much, and hope things get better in the near future for ya!
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