An Old Competitors Story - REO Property Preservation Forum
 
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post #1 of 5 (permalink) Old 02-16-2014, 08:58 PM Thread Starter
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An Old Competitors Story

Had a funny and sad story told to me today from a fella who used to compete with me through my departure date in 2011 from bank work.

Heres the short version that everyone can relate to:

In 2012 Grass cut pay was cut drastically so he went and bought 2 "smaller" trucks that got better fuel mileage. 2 used trucks at $5500 avg. $11,000.

Found out that these used smaller trucks couldnt pull the larger trailers so he purchased 2 12'ers at $1800 each. $3600.00

Purchased 2 used bigger mowers since he couldnt get 2 riders on his new smaller trailers that was pulled by the smaller trucks. $6000.00

$20,600 spent to try to make grass cutting still profitable.... Started out with 136 properties to mow and by June they were doing "spot mowing" on apprx 40 properties while the others sat and grew or sold or whatever happened to them.

Lost $$ in 2012 on GC. Made a little $$ on the routine work. It helped when he let go of his extra crew.

2013 came and he told 3 Nats to Screwoff on GC's. Had an extra truck and mowing equiped trailer for sale. Picked up doing extra lockchanges. Bought several cases of these certain keycodes...Month later the servicer changed to random keycodes and the realtors held them to it... Got lots of locks making dust so sold for a loss on ebay--maybe you bought them.

Held on thinking Wz season might be better... It just got worse than 2012, 2011 , 2010 etc etc. Got Winterize list in Sept and the route was 1100 miles long on 85 properties. Held onto list for 2-3 weeks and sent back to 2 Nats with a nice email note.

I told him thats to bad. But his concrete business really picked up so all is good AND he has 2 older smaller trucks . Nope 1 of them blew up motor

Figures
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post #2 of 5 (permalink) Old 02-16-2014, 09:58 PM
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re

The problem I see is that he didn't do his research before he started dropping money on equipment. When you buy small trucks they only get good mileage when your running dry with them. As soon as you put a trailer on them you overwork the engine and get poor mileage. I started out pulling my trailer with my dodge 2500 cummins and I averaged about 17mpg. When my route started to get longer (I regularly did 500mile days) I bought a liberty CRD (diesel) to pull the trailer. To my delight it was far more comfortable to drive and I averaged about 23mpg pulling the trailer. So even with a 500 mile route my fuel costs was only about $90.

As far as a wint list 1100 miles for 85 properties isn't that bad, for this I would have taken the jetta at 45mpg (damn winter blend) so even if you ended up just blowing through them and staying in a hotel doing 10 a day

Lets assume $250 in fuel (way high but your going to be zig zagging along the route)

$50/night for a hotel lets call it $500

$250 in materials

So you got $1k in expenses and lets assume you're getting $75 per wint thats
$6375 - $1k expenses

$5300 for a solid 9 days of work isn't terrible, the catch is; who is the client and will they actually pay you.
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post #3 of 5 (permalink) Old 02-17-2014, 12:00 AM Thread Starter
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Yeah your right.. He was in P&P since 1995. Newbie That guy sure knew how to squeeze a dollar out of a job. Dont feel sorry for him...he is doing good on private work.

BTW, some of you know the story but this guy found over $70k in the walls of a home while pulling base..
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post #4 of 5 (permalink) Old 02-17-2014, 11:01 AM
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Originally Posted by nurumkin View Post
. . .for this I would have taken the jetta. . .
How many gallons of antifreeze can you stuff around your compressor in that magic Jetta?

Iíve already told you more than I know.
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post #5 of 5 (permalink) Old 02-18-2014, 11:59 PM
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Originally Posted by PropPresPro View Post
How many gallons of antifreeze can you stuff around your compressor in that magic Jetta?
and the generator?
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