Fannie Mae sucks - REO Property Preservation Forum
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post #1 of 11 (permalink) Old 02-08-2017, 09:56 AM Thread Starter
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Fannie Mae sucks

I've done mostly routine stuff for the last 7 years, because I actually enjoy it. I have been able for the most part to negotiate good pricing and Fannie Mae has been a huge chunk of my income, no doubt through national companies. But now this type of work has become so jacked on ridiculous photos and ever lower pricing. So about 6 months ago I started "dabbling" in preservation again, through some realtor work, but also for a particular national that gets very few complaints on here. They have Fannie in my state.

So many times I've read on here that "Fannie Mae is crap and don't even bother". I never understood that until now. I've made some very decent coin on bid approval work lately, but exactly 0 of those are FMNA. I haven't accepted one yet. Not only do they cut your bid prices to unprofitable levels, they like to approve one small piece of the total damages bid.....and then cut it to unprofitable levels.

Here's a bid approval I got a couple days ago.

Laundry room floor 12x6 soft/water damaged. Move washer/dryer/debris to kitchen, Remove/reinstall wood base board, remove/reinstall electric base heaters, remove ceramic tile floor, remove sub floor, replace sub floor. I think I bid like $1200 in pocket.

FNMA approved at $176. Um...no. There were also 4 other damaged items in the house, including a soft/water damaged bathroom tile floor, but no approval on that.

In the future if I see or hear "Fannie Mae", it will be the end of that conversation. Fannie Mae, you suck. There's better work everywhere.
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post #2 of 11 (permalink) Old 02-08-2017, 04:36 PM
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I had a good relationship with AMS

doing FNMA routines, and have not been able to make it work with any other company. Now the volume in my area would not support it. I guess those days are gone forever.

It really was a good gig for the five years or so.
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post #3 of 11 (permalink) Old 02-08-2017, 05:28 PM
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Nothing Fanny Mae has ever been good. Probably good that you posted this so the newbie's can figure this out.
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post #4 of 11 (permalink) Old 02-08-2017, 08:03 PM
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2009-2013 FNMA work was pretty profitable. But I blame them for the "package pricing" nonsense that ruined the ability to be relatively profitable on REO's. I haven't done a single industry related order in nearly 2 years....I truly feel bad for folks getting into this biz now days.
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post #5 of 11 (permalink) Old 02-08-2017, 09:12 PM
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Was on a fnma property last week bidding some work for a potential buyer after the inspection, some unlicensed hack was plugging the end of an active chimney with mortar because there was water on the floor, and he figured the only way it could have got there was through the chimney, at least he worked slow enough that he was still on site when the state came to check for his license, guy claimed he was hired by fnma to fix the leak, idk if he was covering for his general or worked for a national, or i guess maybe he was working for fnma, but plugging a chimney? I'm guessing he wasn't the high bid.

Stay away from fools, for you won't find knowledge on their lips.
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post #6 of 11 (permalink) Old 02-10-2017, 08:50 AM
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I have been renovating homes in NJ for twenty plus years and preservation since 2009, I was approached by a friend of fifteen years who is a general contractor in NJ as well about completing Fannie Mae re-models, he claimed they do not pay like homeowners but it is high volume, I figured let me try it and at worst just walk away.
Here is an example of what they expect; Repair all drywall and doors in home as needed, paint interior of a three story 4 bed home, painting includes removal of any and all wallpaper, ceilings get flat white, walls get matte light beige, trim gets white semi. Replace damaged and refinish all hardwood, replace vanities, tops, faucets and ceramic floor in all three bathrooms (remove and replace existing toilets). Remove kitchen counter tops and cabinets (upper and lower), install new cabinets (upper and lower), install new counter tops sink and faucet, all new shut off valves, supply lines, traps. Remove all lights and install new ceiling fans in bedrooms, flush mount ceiling lights in all other rooms including hallways, new lights in bathrooms including new exhaust fans, replace all outlets, outlet covers, new lights switches and covers, new GFI's in kitchen and bathrooms. Remove railings, stair treads and landing of a 4 steps entrance porch, then re-deck and install new railings. You are responsible for all permits and inspections. A thorough sales clean when complete, they give you a due date that allows 1 day per $1,000 of the job, the sales broker evaluates your work and scores you (your score and due date must all stay above 90% or they cut your work load). This job paid $15,000 with you supplying all material and labor then waiting 30 to 40 days for a check. I tried it for six months completing a dozen jobs and just recently walked away.
GOOD LUCK NEWBIES!!!
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post #7 of 11 (permalink) Old 02-10-2017, 02:13 PM Thread Starter
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Quote:
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.....at least he worked slow enough that he was still on site when the state came to check for his license....

Just wondering why they came to check his license. Would you happen to know?
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post #8 of 11 (permalink) Old 02-11-2017, 11:11 AM
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Quote:
Originally Posted by safeguard dropout View Post
Just wondering why they came to check his license. Would you happen to know?

maybe

Stay away from fools, for you won't find knowledge on their lips.
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post #9 of 11 (permalink) Old 02-14-2017, 06:48 PM
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Quote:
Originally Posted by NJERPP View Post
I have been renovating homes in NJ for twenty plus years and preservation since 2009, I was approached by a friend of fifteen years who is a general contractor in NJ as well about completing Fannie Mae re-models, he claimed they do not pay like homeowners but it is high volume, I figured let me try it and at worst just walk away.
Here is an example of what they expect; Repair all drywall and doors in home as needed, paint interior of a three story 4 bed home, painting includes removal of any and all wallpaper, ceilings get flat white, walls get matte light beige, trim gets white semi. Replace damaged and refinish all hardwood, replace vanities, tops, faucets and ceramic floor in all three bathrooms (remove and replace existing toilets). Remove kitchen counter tops and cabinets (upper and lower), install new cabinets (upper and lower), install new counter tops sink and faucet, all new shut off valves, supply lines, traps. Remove all lights and install new ceiling fans in bedrooms, flush mount ceiling lights in all other rooms including hallways, new lights in bathrooms including new exhaust fans, replace all outlets, outlet covers, new lights switches and covers, new GFI's in kitchen and bathrooms. Remove railings, stair treads and landing of a 4 steps entrance porch, then re-deck and install new railings. You are responsible for all permits and inspections. A thorough sales clean when complete, they give you a due date that allows 1 day per $1,000 of the job, the sales broker evaluates your work and scores you (your score and due date must all stay above 90% or they cut your work load). This job paid $15,000 with you supplying all material and labor then waiting 30 to 40 days for a check. I tried it for six months completing a dozen jobs and just recently walked away.
GOOD LUCK NEWBIES!!!

Just curious what was your material cost and labor cost for that specific job? and a $15k job means it took 15 days correct?
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post #10 of 11 (permalink) Old 02-15-2017, 02:00 PM
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When all was said and done my profit was about $2,200
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