Join Date: Oct 2012
Thanked 75 Times in 46 Posts
I had a bank rep at one of super banks call me because we had a local inspector write a thank you letter to the bank for cleaning up the property and fixing it correctly and the vp of the bank p&p department called me and gave me a $1000 gift card to home depot for doing a good job. I asked him if I could work direct for them and he told me sure. He emailed me a list of items I had to meet. 1. super large insurance policy that made the policy us contractors buy look like chicken feed. My agent quoted it at $25,000 a month. 2. Every day a property goes past the convey date it was $500 a day penalty. 3. You had to cover a zone for them. Its was 500 square miles or something like that. 4. IT department and a data storage with battery backup of 550tb. I got a quote for this and it was $7000 a month and the bank had to have full access to all your records 24hrs a day for 10years.
Payment terms are net 10 with this big bank and its was a major player.
After doing the math, my start up costs was around $150,000 before even getting an order, and the bank had no promise of even getting one order.
You need some serious money to work direct, no bank is going to give you a loan.