Starting a new Property Preservation LLC Company, Many Questions: - REO Property Preservation Forum
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post #1 of 99 (permalink) Old 01-11-2012, 05:47 PM
locsaint
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Starting a new Property Preservation LLC Company, Many Questions:

1.When you first take on a company to receive work orders from (Not subcontracting, but rather straight from the major companies) How big of a service area do they expect you to service? 100 miles more or less? The entire state you live in?

2.My understanding is that checks are 3 months out, is this correct?

3.Would it be smart to start off, just receiving work orders from 1 company? Would it be alot of work orders or a little?

If just a little amount of work, would it then be smart to take on more then 1 company to start out?

4. Im trying to start with just myself, no subcontractors. Is it a must to start off with sub-cons, or is it realistic to start off with 1 companies amount of work orders and only me taking care of them?

I appreciate all of you guys on contractor talk. All your information is extremely helpful to me and I appreciate your answers to these questions.
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post #2 of 99 (permalink) Old 01-11-2012, 06:02 PM
Prism
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Starting a Company!

First off read the 'Newbie' thread there is a great wealth of information to read there.

This is not the easiest business to get into, even though it may seem like it. And as far as how many companies-know what you can handle.
One company may give you 20-30 orders a week with a 72 hour turnaround , or they may give you 5 a week, depending on the need in your area.
Where are you located?
Some companies have a vendor network of as many as 200 contractors and are still taking more for backups or if one goes sour. Make sure you know what kind of volume you are getting before registering with a bunch of companies, as you may get more work than you can handle.
Another key point is to READ YOUR CONTRACTS before signing them. A lot of contracts contain non-compete's in them and you can lose all work from them or get sued if you contact a national or bank they work for, even if they are not giving you active work.
Lastly, since you are trying to start alone, be prepared to work your a** off and pay out of pocket. Companies can pay anywhere from 30-90 days out, and you will have to be able to stay in business and keep on trucking until they start to pay, so starting off you may want to limit your applications until you start having money coming in. Also do your research before signing up, they may not pay at all!
post #3 of 99 (permalink) Old 01-11-2012, 06:09 PM
locsaint
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Im in Washington state. I have been doing sub-con work for over 3 years now for many companies. I understand some of the buisness from the work perspective, I have all the equipment necessary for the job, and from doing sub-con work I definatly know about working my a** off. My best is 20 WO's a day, doing that back to back for 2 months straight with no days off. If it gets harder then that, I would probably have to have a sub-con.

What companies would you reccomend to start off with? I know in my state alot of companies are getting tons of work from LPS. Are they a good company?

P.S Thank you Prism!
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post #4 of 99 (permalink) Old 01-11-2012, 06:12 PM
locsaint
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Im in Washington state. I have been doing sub-con work for over 3 years now for many companies. I understand some of the buisness from the work perspective, I have all the equipment necessary for the job, and from doing sub-con work I definatly know about working my a** off. My best is 20 WO's a day, doing that back to back for 2 months straight with no days off. If it gets harder then that, I would probably have to have a sub-con.

What companies would you reccomend to start off with? I know in my state alot of companies are getting tons of work from LPS. Are they a good company?

P.S Thank you Prism!
post #5 of 99 (permalink) Old 01-11-2012, 06:14 PM
Prism
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No problem, glad to help. I have completed a lot of LPS orders through third party vendors and they are ok to work for , but their pricing isnt the best. So make sure if you work for them you know how much you will be making ahead of time, before you sign anything.
post #6 of 99 (permalink) Old 01-11-2012, 06:17 PM
locsaint
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What companys would you suggest to start taking work orders from in washington state?

What companies can I recieve work orders from, where I will know for a fact that I will be the second party/contactor? Or is that unheard of? Or is all the work through these companies mainly 3rd party?
post #7 of 99 (permalink) Old 01-11-2012, 06:22 PM
foothillsco
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1.How big of a service area do they expect you to service? 100 miles more or less? The entire state you live in?

It depends on the client. The bigger clients want a bigger area such as 75% of a state. These clients are Corelogic, Safeguard, MCS etc.

2nd tier clients, you have to play harder with. They want you to cover more but offer less volume. If you can land one good big client, then it makes other decisions easier.

2.My understanding is that checks are 3 months out, is this correct?

No. Most national companies pay less than 30 days now. Still, a big cash cushion is recommended. I would start with 10k in bank if you get a national.

3.Would it be smart to start off, just receiving work orders from 1 company? Would it be alot of work orders or a little?

I wouldnt turn down anything you think you will make a good profit on, potental profit on and is collectible.

4. Im trying to start with just myself, no subcontractors. Is it a must to start off with sub-cons, or is it realistic to start off with 1 companies amount of work orders and only me taking care of them?

You need 1 sub to be your backup. They wont last if you dont throw them some money. But no matter what, your business cant be based on just you because life happens. Get a sub, make sure he collects $700 per week, and you do the rest. Grow your business.

Second, hire someone for your office work instead of you, unless this is your strong point. Then hire 2 subs, no office.
post #8 of 99 (permalink) Old 01-11-2012, 06:27 PM
foothillsco
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Quote:
Originally Posted by locsaint
What companys would you suggest to start taking work orders from in washington state?

What companies can I recieve work orders from, where I will know for a fact that I will be the second party/contactor? Or is that unheard of? Or is all the work through these companies mainly 3rd party?
I cant speak about LPS firsthand. They have an iffy reputation, some very good, some very bad. Similiar to Safeguard.

All clients require and excellent vendor manager relationship. If you poison this, you might as well quit. You want to meet this person and establish a rapport.

Join NAMFS. If they are a member, they are a prospective customer. Goto their conference. This is a must. Put a note to yourself to join, and goto the conference. They dont offer much else but that single weekend to network.
post #9 of 99 (permalink) Old 01-11-2012, 06:37 PM
locsaint
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Can you guys reccomend a company that will be good for my current situation, which is:

I am starting off just by myself and will only be able to cover a 100 mile radius. This will be my first time taking work orders as my own company instead of being a sub-con getting work, Im used to completing a good volume of wo's: 20 grass cuts a day or in winter months 10 Wints, Initial secures/other work orders a day. So a company that will send me a good volume of work, but not overwhelming on my own.

Foothills, thank you soo much for your replys and time. I appreciate you very much!
post #10 of 99 (permalink) Old 01-11-2012, 06:40 PM
ohiohomedoctor
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This is the best advice your going to get, DONT DO IT! Start a local painting, trash hauling, yard mowing service and market yourself in your home town.
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