First realty company bid - REO Property Preservation Forum
 
LinkBack Thread Tools Display Modes
post #1 of 9 (permalink) Old 11-04-2016, 12:17 PM Thread Starter
Junior Member
 
Join Date: Nov 2016
Posts: 7
Thanks: 4
Thanked 3 Times in 3 Posts
First realty company bid

Hello all. I'm a new member to this site, but I've learned plenty just researching other peoples threads for the last couple years. Now I have a question that I hope I can get some veteran insight on. I was recently contacted by a realty company asking me to provide a bid for a trashout. I jumped on the opportunity to assist them, since this is the ideal client right? Drove out the next day, assessed the job, and submitted my bid. I honestly didn't expect them to approve it because I bid the job for what I SHOULD get paid. They emailed today and said they expect to get approval on all or some of my bid by Monday, and want to know when I can get started. My question is: Do I need to draw up some kind of service agreement for them to sign prior to doing this job? There has been no mention of any paperwork, payment terms, or anything else. I've only worked with nationals and regionals to thus far, and everything is clearly laid out in terms of contractor agreement, payment etc. Any help would be greatly appreciated.
WSK13 is offline  
The Following User Says Thank You to WSK13 For This Useful Post:
RG22 (12-21-2016)
Sponsored Links
Advertisement
 
post #2 of 9 (permalink) Old 11-05-2016, 09:06 AM
Member
 
Join Date: Sep 2015
Posts: 76
Thanks: 13
Thanked 16 Times in 10 Posts
[ They emailed today and said they expect to get approval on all or some of my bid by Monday, and want to know when I can get started. My question is: Do I need to draw up some kind of service agreement for them to sign prior to doing this job? There has been no mention of any paperwork, payment terms, or anything else. I've only worked with nationals and regionals to thus far, and everything is clearly laid out in terms of contractor agreement, payment etc. Any help would be greatly appreciated.[/QUOTE]

Real Estate brokers are indeed the best in the preservation business. Over the years I have dealt with numerous and have always been paid for work performed, but I have dropped a few for not receiving payment after 60-90 days after invoicing. But, once again, always been paid ! Real estate firms have various licensing requirements, state licenses, code of ethics agreements, members of national board of realtors, etc.. which hold them to higher standards. I do however, in most cases, have a signed proposal (Bid) just in case. After all you are extending credit. What I have always found simply amazing is the ability to actually be paid what the work you are doing is worth. I think this is empirical proof the extent to which ALL the national asset management firms screw the contractor who actually does the work ! And of course add to the screwing with the additional bribe or so called
" discount " for the sheer pleasure of working for them ! Good luck, I believe you are on the road to a more profitable future.
disgusted is offline  
The Following 2 Users Say Thank You to disgusted For This Useful Post:
Craigslist Hack (11-05-2016), WSK13 (11-06-2016)
post #3 of 9 (permalink) Old 11-05-2016, 11:48 PM Thread Starter
Junior Member
 
Join Date: Nov 2016
Posts: 7
Thanks: 4
Thanked 3 Times in 3 Posts
Thanks for the insight. I will ask them to sign the bid and agree to the scope of work to be performed, as well as a reasonable time frame for payment to be remitted. Hopefully, this is the first of many assignments from this client. I'm putting together a plan to reach out to many more real estate brokers, agents, etc. Maybe one day I can say goodbye to the nationals for good. Thanks again.
WSK13 is offline  
The Following User Says Thank You to WSK13 For This Useful Post:
RG22 (12-21-2016)
Sponsored Links
Advertisement
 
post #4 of 9 (permalink) Old 11-05-2016, 11:58 PM
How I wanna be a PP Pro
 
Wannabe's Avatar
 
Join Date: Oct 2012
Location: USA
Posts: 1,103
Thanks: 232
Thanked 1,277 Times in 562 Posts
Most definitely have a small contract for signature by both parties. Once you develop a relationship it may loosen up a bit on signatures but always remember "not all realtors are created equal". I've had people work on foreclosed homes for a realtor and struggle to get paid.

On new clients I require a 33-50% down payment with final payment within 30 days of completion.
Wannabe is offline  
The Following 2 Users Say Thank You to Wannabe For This Useful Post:
GTX63 (11-06-2016), WSK13 (11-06-2016)
post #5 of 9 (permalink) Old 11-06-2016, 06:40 AM
Super Moderator
 
GTX63's Avatar
 
Join Date: Apr 2012
Location: Your House Soon...Soon
Posts: 3,186
Thanks: 676
Thanked 2,249 Times in 1,094 Posts
Quote:
Originally Posted by Wannabe View Post
Most definitely have a small contract for signature by both parties. Once you develop a relationship it may loosen up a bit on signatures but always remember "not all realtors are created equal".
Years ago we had a broker contact us to do a clean out on a house where the owner had been dead for 5 days before being discovered. She was an extreme hoarder who had stacked items to the ceilings with a single path to the kitchen and bathroom. The basement had a sewage backup 8" deep and was full of clothes, mattresses and flies. Two dogs in cages died from lack of water.

I'm a big pro broker guy but we still put everything in writing, both paper and email. Broker requests we collect at closing. Contract was for payment at closing or 45 days, whichever was sooner.
47 days later no payment.
"Oh, she says, house hasn't sold and brother/executor lives out of state. Let me get back with you."
Day 49 I call. "Yeah, brother #2 is disputing the will so we're kind of in a holding pattern. Give me a day."
Day 52 I call. "Oh" she says "They didn't get a hold of you? They are wanting to work something out."
Lol I replied "Barbara, I don't know these people from a duck. I know you. You requested the work, you approved the bid, your name is on the invoice and you signed it." If I had to explain this to say a judge, or the board of realtors, as far as I know you own the house.
We got our check 4 days later.

All that said to reinforce that you don't leave your a employee in the office on day 1 with the safe open, and you don't work for new clients without a contract. Even a generic write up is better than expecting payment based on a verbal and nothing else. Hope that helps.
GTX63 is offline  
The Following User Says Thank You to GTX63 For This Useful Post:
WSK13 (11-06-2016)
post #6 of 9 (permalink) Old 11-06-2016, 09:14 AM
How I wanna be a PP Pro
 
Wannabe's Avatar
 
Join Date: Oct 2012
Location: USA
Posts: 1,103
Thanks: 232
Thanked 1,277 Times in 562 Posts
We had a few situations similar, without the sewage though. We always asked for the POA (Power of Atty) to be sure the realtor actually had authority to dispose of items. Always told the Realtor is was for THEIR AND OUR protection. They understood why.
Wannabe is offline  
The Following 2 Users Say Thank You to Wannabe For This Useful Post:
RG22 (12-21-2016), WSK13 (11-06-2016)
post #7 of 9 (permalink) Old 11-06-2016, 11:53 AM Thread Starter
Junior Member
 
Join Date: Nov 2016
Posts: 7
Thanks: 4
Thanked 3 Times in 3 Posts
Great advice from everyone. 30-50% down payment is a great idea. I just don't want to spring that on them at the last minute. It's definitely something I will consider in the future. At this point, I'm waiting for approval, which should be tomorrow. I plan to collect signatures agreeing to work and payment terms. I will draw up a more comprehensive contract for all future work.
WSK13 is offline  
post #8 of 9 (permalink) Old 11-06-2016, 12:46 PM
Super Moderator
 
GTX63's Avatar
 
Join Date: Apr 2012
Location: Your House Soon...Soon
Posts: 3,186
Thanks: 676
Thanked 2,249 Times in 1,094 Posts
At the minimum, a down payment covers your dump fees, materials and laborers that still expect to be paid this friday. The other 50%-70% outstanding is credit extended from you to them at 0% interest based on your soft heart and willingness to trust strangers.
GTX63 is offline  
The Following User Says Thank You to GTX63 For This Useful Post:
Craigslist Hack (11-07-2016)
post #9 of 9 (permalink) Old 11-06-2016, 10:08 PM
G 3
Senior Member
 
Join Date: May 2015
Posts: 210
Thanks: 255
Thanked 145 Times in 85 Posts
I met a client on a construction draw inspection, and told him the other things I do, because he asked. I got 2 trash outs and 3 lock changes within 5 days, and argued to get paid almost $1900 for 30 days. I had to file liens on those properties, and new everything is good.

He calls with the addresses of the properties I need to work on, and either has a check for 50% waiting for me at his office (Which is on my way to other things I do 3 times a week, so no big deal picking it up!), or uses PayPal to pay me the deposit if it is a rush(He knows he has to pay a 4% fee for PayPal).

Like Wannabe and GTX said... get a retainer/deposit for work performed if they are not a good existing client.
G 3 is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the REO Property Preservation Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome