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post #1 of 18 (permalink) Old 06-11-2013, 12:59 PM Thread Starter
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I need advice

I started my p & p Company 2 months ago and have been advertising to all the reo brokers and real estate agency's in my area as well as craigslist and using my website But have not received any responses for work. I am starting to think I might have to join a national company just to get my foot in the door and get my name out there. The problem with this is There are so many to choose from and I hear bad things about a lot of them so here is my question to you if you had to pick 1 national to sign up to witch one would you? I know field assets is out of the question and I was told safeguard is a giant headache because of all the paperwork required with. I dont mind doing the office work but if I spend more time doing the paper work for the job than the actual job there is a problem ha. Also I have been contacted via craigslist by a fellow p & p company in my area wanting me to do work for them because they have to much work should I avoid this seeing as how I could just get the same work from the nationals and make what they make?
or should I completely avoid the nationals like I have been doing and keep advertising to Realtors for move-in move out services and lawn care?
Thanks,
Shawn member of perfectiondoneright, llc
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post #2 of 18 (permalink) Old 06-11-2013, 02:15 PM
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I think a big problem for you is the lack of credibility. You've only started the business 2 months ago and are trying to go straight to realtors? That's a great plan but what can you offer them that their current contractors can't/don't? Going straight to a National? Probably not a good idea either. Without experience, many of them will eat you alive. The other ones probably won't talk to you. It's a tough gig to start and almost impossible to start at the top. I'd give it some serious thought to help the guy who contacted you until you learn the ropes.

Sorry for being so blunt, but unless you cover a remote, hard-to-cover area with no contractors, you have an uphill battle infront of you....



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post #3 of 18 (permalink) Old 06-11-2013, 02:46 PM
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This isn't a get rich quick industry for contractors, it's just presented that way. First year in, we grossed 33k, second year about 111k, third year a half million, etc, etc. That was carpet bombing every National and Regional with a webpage or a shingle over the door. 120 hour weeks, huge chargebacks from even bigger crooks, all while running construction and rehab business as well. That was over a decade ago and a lot has changed. Your education in REO is a pay as you go plan and it is very expensive.
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post #4 of 18 (permalink) Old 06-11-2013, 03:49 PM
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My advice is get out while you can. After two months you have not sank any money in that can not be recovered. Heres why I say this.

I started in this industry in 2010 working for a company in Florida. He had two crews and I was going to be his third when grass cuts started back up. He was some what of a partier and crack head (as was his employees) so in 2 months I was basically running his company for him because he was never there. No one ever bid anything, they cut grass and did trash outs. What was a shrub or palm trees.

No one taught me the business so I taught myself. He was doing work through BOA and when I started bidding work he started making money. We went from the 5 guys to 10 guys with 5 crews. I basically went out with him and bought 3 more trucks, trailers, mowers, etc.

So any ways I worked for him for 11 months and after working 7 days a week and 16 hours a day I quit. I started at $70 a day with him and went to $125 a day with bonuss'. I thought I could do what he was doing on my own.

So in Jan of 2011 I moved to Knoxville TN and started my own business doing work through BOA. My first year I grossed $134000 working for two companies. In 2012 I grossed $148000 working for one company.

This year I had to move back to Florida for family reasons which was hard to do but had to. Well any ways I started over with nothing and found out that the industry is not the same here anymore. No big company will give you work without covering a huge portion of the state.

I took up work with a little pos regional and work for 42 days before seeing that I was not going to get paid. This was in March and April and to date they owe me $5300 which I will never get.

This industry sucks now. What eveyone here talks about is the truth. These companies want more for less. It is hard to make it with experience so I could not imagine what it would be like with none.

If you have the drive to own a business and the will to succeed then why dont you start cutting grass in you area and get customers that way. You can make more money with less headache and will be happier.

Just my two cents sorry for the long post.
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post #5 of 18 (permalink) Old 06-12-2013, 10:52 AM Thread Starter
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thank you for your responses I realize the industry has changed thats why I did not get into bed with any nationals because of the research I have done. I have been advertising residential work for the past week as far as lawn care/pressure washing/trash removal as well as residential cleaning. I was offered to sponsor a realtors monthly meetings in return they will post my information in there office for all there agents and have been considering this as well for 100 dollars i get 6 months of advertising not a bad trade off.
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post #6 of 18 (permalink) Old 06-12-2013, 06:11 PM
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Joining your local Chamber of Commerce is an excellent way to network with other people. It doesn't cost a lot and if it doesn't work out you can quit.
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post #7 of 18 (permalink) Old 06-12-2013, 06:20 PM
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Quote:
Originally Posted by perfectiondoneright View Post
thank you for your responses I realize the industry has changed thats why I did not get into bed with any nationals because of the research I have done. I have been advertising residential work for the past week as far as lawn care/pressure washing/trash removal as well as residential cleaning. I was offered to sponsor a realtors monthly meetings in return they will post my information in there office for all there agents and have been considering this as well for 100 dollars i get 6 months of advertising not a bad trade off.

Sounds like a good roi. You could also hit all of the rental agents and cut a deal with them to get more work. If the other guy is doing them for $60 and you could do them for $50 then he could still charge the $60 and keep ten.
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post #8 of 18 (permalink) Old 06-12-2013, 06:31 PM
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As most of the long term contractors on here can attest, this business is dying out now. Our preservation revenue is less than half what is was 2 years ago.
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post #9 of 18 (permalink) Old 06-12-2013, 10:26 PM
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Ive been in the industry for 6 years. I remember sitting around waiting on work to come. About 3-4 years ago, I started getting large amount of volume in my local area. Only had a helper and me, then. Now I have expanded inside of my local area covering no more than 75 miles from my office, with 4 crews and 2 office processors. Turn about 60-80 orders per day. I use to bust my butt 7 days a week 12 hour days. Now I work 6 days a week, but I pick and choose what orders I want to do and where. I leave the office at 730 and im home by 630 each day. I always take an hour lunch break as well. I mainly work with 5 clients, 3 nattys and 2 regionals.
Some people say its a downward spiral with volume now, but Ive never been busier. It's all in who you work with these days and how good your scorecard is and most of all your pricing. It could be a downward spiral because someone undercut your pricing and now has taken a percentage of your work leaving you with less volume. In my area there is atleast 1 vacant property on every street in the city I live in.
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post #10 of 18 (permalink) Old 06-12-2013, 10:46 PM
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"I leave the office at 730 and im home by 630 each day."
Do you sleep at the office?
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