Service companies and realtors? - REO Property Preservation Forum
 
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post #1 of 8 (permalink) Old 09-13-2016, 08:39 AM Thread Starter
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Service companies and realtors?

A couple of things I am trying to figure out maybe some of you guys can help me with?

  1. Loans being sold off before the property comes up for sale. I have multiple properties that we serviced for Servicelink and now we are managing them for Bayview or Calibur, etc. How does one buy a loan like this? The market is getting saturated with buyers for flips. If I could buy them on the wholesale loan market I could make real profit.
  2. When we get a rekey through a realtor we might do the rekey and maybe do a mold remediation or roof repair whatever. The routine stuff like the trash out or the grass cuts all go to a service company. I am hearing repeatedly "They have their own service company" and I have had guys roll up on me while we are doing other work. How do I get all the work instead of just portions?
After spending years building relationships with these realtors we are losing that work to nationals. We are still getting work just not nearly the volume we had before.
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post #2 of 8 (permalink) Old 09-13-2016, 08:42 PM
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1. If we knew that we would all be rich. My guess there just trading loans.
2. Realtors have contract through fannie mae wells fargo freddie mac etc which places them all in reo. The service companies all have contracts for p&p sometimes translates into reo work. You would have to go after these contracts. The problem being you are competing against mutli million dollar companies. To gain these contracts you must provide the services nation wide to even compete. You would also have to chase the bottom dollar pricing.
Obliviously I'm not providing you any info you did not know before.
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post #3 of 8 (permalink) Old 09-14-2016, 07:20 AM Thread Starter
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Originally Posted by Allout View Post
1. If we knew that we would all be rich. My guess there just trading loans.
2. Realtors have contract through fannie mae wells fargo freddie mac etc which places them all in reo. The service companies all have contracts for p&p sometimes translates into reo work. You would have to go after these contracts. The problem being you are competing against mutli million dollar companies. To gain these contracts you must provide the services nation wide to even compete. You would also have to chase the bottom dollar pricing.
Obliviously I'm not providing you any info you did not know before.

Right right I knew all of that but last year it wasn't like this with the routines. What changed?
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post #4 of 8 (permalink) Old 09-14-2016, 08:06 AM
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Volume is going to continue to drop but you already know that.

Funny thing is, we get the same response from our brokers that "X is doing everything after the rekey so sorry", yet in the past three weeks we've completed a half dozen trashouts that the nationals can't seem to get done for the lender. In one case of plain stupid, the lender paid a contractor from Ky to go up to southern Il and sheet rock a basement and main floor of a 300k house. The lender paid the contractor IN FULL after materials were dropped off. Once that happened, said contractor apparently came back to KY for happy hour and stayed. They were nice enough to leave the sheetrock not in the garage, but a carport, where it promptly became wet and crumbled.

Back on topic, we are able to get inside on the bidding only because we stay close with the brokers. If it sells beforehand, the lender is just moving stacks of paper to another carrier.
The flippers are heavy everywhere and with 15 years of this mess under their belts are getting good at knowing how and where to find the deals. It's been a long time since I could pick anything up not close to the list price-unless its in a free fire zone.
I've got a son in law in Fort Wayne that works for Wells Fargo and I'll see what he knows next time I go up.
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post #5 of 8 (permalink) Old 09-16-2016, 08:01 AM
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A broker/realtor from the largest real estate office in my area called me yesterday wanting routine services-inspections, grass, snow, routine interior on a freddie home. It is a bit off the beaten path (15 min off my regular route) so I said yes but it will be full freddie allowable pricing. She said no problem just send me your invoices.

Still getting some of this here and there but not as much as a year or two ago.
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post #6 of 8 (permalink) Old 09-16-2016, 08:19 AM Thread Starter
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Originally Posted by GTX63 View Post
Volume is going to continue to drop but you already know that.

Funny thing is, we get the same response from our brokers that "X is doing everything after the rekey so sorry", yet in the past three weeks we've completed a half dozen trashouts that the nationals can't seem to get done for the lender. In one case of plain stupid, the lender paid a contractor from Ky to go up to southern Il and sheet rock a basement and main floor of a 300k house. The lender paid the contractor IN FULL after materials were dropped off. Once that happened, said contractor apparently came back to KY for happy hour and stayed. They were nice enough to leave the sheetrock not in the garage, but a carport, where it promptly became wet and crumbled.

Back on topic, we are able to get inside on the bidding only because we stay close with the brokers. If it sells beforehand, the lender is just moving stacks of paper to another carrier.
The flippers are heavy everywhere and with 15 years of this mess under their belts are getting good at knowing how and where to find the deals. It's been a long time since I could pick anything up not close to the list price-unless its in a free fire zone.
I've got a son in law in Fort Wayne that works for Wells Fargo and I'll see what he knows next time I go up.
Thanks for the info. I know your business model is closer to mine than probably anyone on the board. We to have seen a sudden spike in trash outs but I am not seeing that last. I feel like it's a spike or a bubble going into elections. I hope I am wrong but I plan to approach this conservatively.

We have quit a bit of work on the books but no true backlog. The other thing I am seeing is my rehab bids are being hacked and cut and they are coming back asking for itemization or reasons why the carpet price is high? The carpet is high because I need to turn a profit.
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post #7 of 8 (permalink) Old 09-16-2016, 06:17 PM
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Quote:
Originally Posted by Craigslist Hack View Post
Thanks for the info. I know your business model is closer to mine than probably anyone on the board. We to have seen a sudden spike in trash outs but I am not seeing that last. I feel like it's a spike or a bubble going into elections. I hope I am wrong but I plan to approach this conservatively.

We have quit a bit of work on the books but no true backlog. The other thing I am seeing is my rehab bids are being hacked and cut and they are coming back asking for itemization or reasons why the carpet price is high? The carpet is high because I need to turn a profit.

You're not willing to lay carpet for 0.80 a foot? I've always found it laughable what some of the allowables have been on rehab work for the big 3. But then again I haven't done a single bank owned job in over 18 months, so what do I know.
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post #8 of 8 (permalink) Old 09-17-2016, 10:59 AM Thread Starter
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Originally Posted by P3+ View Post
You're not willing to lay carpet for 0.80 a foot? I've always found it laughable what some of the allowables have been on rehab work for the big 3. But then again I haven't done a single bank owned job in over 18 months, so what do I know.
I'm not willing to lay carpet! I hire it out.
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