Through the Broker??? - REO Property Preservation Forum
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post #1 of 12 (permalink) Old 11-30-2013, 01:18 PM Thread Starter
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Through the Broker???

I recently contacted a broker on a home I noticed needed some work(mildew on siding, broken fence on 4 acres horse pasture, soffit/fascia repair. To my surprise he asked for bids. While there figuring for bids, a Contractor that subs to a company that subs for SG questioning my I was bidding on his job. My question is what is the experience of the veterans when dealing with brokers? Does the fact that SG is still in the picture take away from the ability of the broker to work with the bank and go around SG?
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post #2 of 12 (permalink) Old 11-30-2013, 04:02 PM
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That depends. Is the property preforeclosure? Is the property HUD, VA, FNMA, Freddie? Is it an REO? If so which bank owns it?



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post #3 of 12 (permalink) Old 11-30-2013, 07:56 PM
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Brokers do have the option of hiring whomever they want for certain work. Usually as long as it is not trash-outs, grass cuts or maids they have fewer restrictions.

For me it is simple. If the broker asks for a bid I give it to them. There is no my property your property crap. This same guy will bid you right out the door on one of "your" properties in a second.

If the broker wants a bid it is probably because the regional or national the other guy works for has jacked his bid out the roof and he wants a competitive bid.

My experience has been that my bids are marked up about 40% to 60% by nationals or regionals so I end up with very little bid work approved through them.

I usually have to wait 45 to 90 days to get paid for direct work, so for brokers I bump it up about 25%. Call it a finance charge if you will. Even with that it will normally come in as low bid and get you the work.

We have more and more brokers hiring direct for evictions, repairs and even some debris removal because it gets done faster and by who they want to do it.

A word of advice, ask the broker if there is an upper limit to the amount you can charge without being a SAM vendor. I had a broker take me aside and tell me that as long as my bids do not exceed $500 they will get approved alot easier and will not require a competitive bid from a SAM vendor. I do alot of $400 to $475 work for him.
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post #4 of 12 (permalink) Old 11-30-2013, 09:38 PM
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Originally Posted by Gypsos View Post
Brokers do have the option of hiring whomever they want for certain work. Usually as long as it is not trash-outs, grass cuts or maids they have fewer restrictions.

For me it is simple. If the broker asks for a bid I give it to them. There is no my property your property crap. This same guy will bid you right out the door on one of "your" properties in a second.

If the broker wants a bid it is probably because the regional or national the other guy works for has jacked his bid out the roof and he wants a competitive bid.

My experience has been that my bids are marked up about 40% to 60% by nationals or regionals so I end up with very little bid work approved through them.

I usually have to wait 45 to 90 days to get paid for direct work, so for brokers I bump it up about 25%. Call it a finance charge if you will. Even with that it will normally come in as low bid and get you the work.

We have more and more brokers hiring direct for evictions, repairs and even some debris removal because it gets done faster and by who they want to do it.

A word of advice, ask the broker if there is an upper limit to the amount you can charge without being a SAM vendor. I had a broker take me aside and tell me that as long as my bids do not exceed $500 they will get approved alot easier and will not require a competitive bid from a SAM vendor. I do alot of $400 to $475 work for him.
Same here ,but is around $800 for trash out, sales clean, lawn. If I keep price around this amount it get approved!
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post #5 of 12 (permalink) Old 12-01-2013, 06:47 AM
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Quote:
Originally Posted by rrogers66 View Post
a Contractor that subs to a company that subs for SG questioning my I was bidding on his job. My question is what is the experience of the veterans when dealing with brokers? Does the fact that SG is still in the picture take away from the ability of the broker to work with the bank and go around SG?
It isn't his job until the client says it is his job. That is why there are bids.
It is true that Broker's have some latitude in these situations. We have also gotten jobs from nationals directly due to the broker requesting us. It is a nice feeling to sidestep a national and get paid the full amount/going rate.
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post #6 of 12 (permalink) Old 12-01-2013, 08:20 AM Thread Starter
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Well I submitted my bids we will see what happens.
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post #7 of 12 (permalink) Old 12-01-2013, 08:53 AM Thread Starter
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I am assuming it is not pre-foreclosure...the home is listed for sale by the broker, That is how I got his number!!!
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post #8 of 12 (permalink) Old 12-01-2013, 09:12 AM Thread Starter
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Doing a records search I found the Mortgage. The form states "Florida Single Family Fannie Mae.Freddie Mac Uniform Instrument". So one of the two I guess is holding the property.
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post #9 of 12 (permalink) Old 12-01-2013, 09:17 AM
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I am assuming it is not pre-foreclosure...the home is listed for sale by the broker, That is how I got his number!!!
Don't necessarily assume that. Around here, there are a ton of preforeclosures that are trying to be sold as a short sale. When that's the case, I don't waste my time bidding anything. The property is in such a state of limbo that nothing will happen.... Just my experience.



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post #10 of 12 (permalink) Old 12-01-2013, 09:22 AM
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Doing a records search I found the Mortgage. The form states "Florida Single Family Fannie Mae.Freddie Mac Uniform Instrument". So one of the two I guess is holding the property.
With that being the case, follow Gypsos advice. If my memory is still good, the broker can spend up to $500 and file it on a form 501C (I think) and then they don't need to involve the SAMS vendor.

Anything over that and you are most likely wasting your time UNLESS you have a great relationship with that broker. The SAMS vendor will get brought in to bid and they'll use FNMA's chitty unit pricing.



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