problems in P & P or REO maintenance - REO Property Preservation Forum
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post #1 of 254 (permalink) Old 02-11-2012, 10:07 AM
Beverly S
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problems in P & P or REO maintenance

Since I sold out and retired in 2010 I have been getting emails and phone calls about so many changes in the industry. I am sure with those changes come many problems also. I have been speaking with some of the very top m & m's and they also say there are problems.
I am trying to find out what the most common problems seem to be in P & P work or Reo maintenance today.
I read posts of no pay, bad companies, no bids accepted, etc. what else seems to be plaguing this industry today? I would love the opportunity to address some of these new problems specifically with the M & Ms. Maybe that is a good place to start so we can possibly implement some positive changes.
Any responses will be greatly appreciated.
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post #2 of 254 (permalink) Old 02-11-2012, 01:30 PM
wildnwonderful
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Multible emails asking same bs questions everyday when you have gave your answer 5 xs already....These start up companys who have no idea whats goin on and screw it all up(dont buy right locks,bid 100 for a 500 job etc) no insurance lisc etc.
post #3 of 254 (permalink) Old 02-11-2012, 02:33 PM
Beverly S
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How do the startups get work orders without the proper insurance? And not using correct locks should give them a no pay on an initial secure. Meaning the next guy who does it right gets the full pay.
You know the hounding of vendor managers is a legitimate pain in the arse and I agree that needs to be addressed. There is absolutely NO reason for them to do that.
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post #4 of 254 (permalink) Old 02-11-2012, 03:21 PM
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Problems

I think that one of the biggest problems is with the underbidding. There are so called nationals popping up everyday and when they contact us to do work, the pricing is unbelievable.
For whatever reason, the industry as I see it is going to continue to go down hill just because any honest company playing by the rules with insurance and taxes can't work for some of these undercut fees. That means all the companies will get are the contractors that cheat and take shortcuts. In the end the clients will pay more for the damages to their properties than they would have if done right the first time.
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post #5 of 254 (permalink) Old 02-11-2012, 04:18 PM
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I come from a commercial construction background. I started at the bottom and worked my way up to run entire companies. My experience and observations on this website show me that the problems plaguing P&P are similar to what plagues construction.

1. Not getting paid in a timely manner - It is a simple fact of life that the lowest tier subcontractors finance the project. Most General Contractors make you sign contracts that provide that you only get paid if they get paid, not necessarily when they get paid. How many times have we heard, “We are just a little behind right now, your check will be sent soon.” But if we get a little behind we get penalized.

2. The price you get paid is not the same as the price that was agreed upon - When they do get paid they want to discuss your invoice and the amount you are going to get, after they have already approved it. How about this one, “The invoiced amount was changed to cover only 30 CY because I just could not see 40 CY yards of debris in the pictures.”

3. There is always some new guy who has no clue about what the cost of doing business is willing to do it cheaper - The current rate for illegal immigrate workers in drywall in Central Florida is $60 per day cash for a 14 hour work day. How do I compete with this when I pay WC & CGL insurance, State and Federal unemployment insurance, employer Social Security contribution and a fair wage to my employees. The same goes for the guy who thinks $15 to cut grass is good money. There is no way he has the proper insurance.

4. Insane project schedules that have absolutely no foundation in reality – the house has been empty and abandoned with no maintenance of any kind done for 3 years and I only have 3 days to to cut down and haul off the forest of shrubs, grass and trees, haul off the 20 CY of debris left in the yard and the 25 CY of debris left in the house and then scrub and polish it up like a shiny new penny. Really... who came up with this? I want to meet this numb skull.

5. Communications, or lack thereof – Your contact is never reachable by phone and takes at least three days to return calls or emails. Then they want to know why you did not accomplish the job correctly or ask for guidance. When I was the Operations Manager at one of the companies I ran, it was policy that you could, and would, be fired for not answering your phone or returning calls quickly. We had no communication problems. People found ways to answer phones and return calls.

6. Respect, or a lack thereof – Nobody likes to be talked down to. I have worked for coordinators that did exactly that. I recall asking for a couple of more days to complete a trash out because we found some issues when we got into it and was told that I would not get more time. If it was not done in the 3 days allotted a second vendor would be sent out to supplement my crew and I would be charged for it, so unless I wanted this to happen I needed to buy another truck and dump trailer and hire more people that day.

7. Knowledge of what the job entails – Teach the people that we have to deal with what the job on our end entails. This is no cushy office job with A/C and a break room. When is rains we get wet. When it is cold out we freeze. When it is hot out we sweat. We go into abandoned buildings that have any number of unknown safety and health hazards. We clean up garbage, rotting food, feces, mold and any other manner of filth that is left behind for nothing near what the effort and risk is worth and we do a damn fine job of it too.

This is what I have experienced. For the last 16 years I have had the scratch and claw and fight for every penny I have made and I have decided I am not going to do that anymore. I enjoy what I do, but I now limit myself to grass cuts and maids. The rest is simply not worth it to me.
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post #6 of 254 (permalink) Old 02-11-2012, 07:32 PM
wildnwonderful
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I hate showing up at a property and none of my keys fit the lock,was secured 4 to 6 months ago and they went got dollar store lock..have call from site, get trip charge 2 weeks later get the w/o for resecure and go fix some jackass's work....wast my time n money..They dont get a charge back cause they are long gone
post #7 of 254 (permalink) Old 02-11-2012, 10:49 PM
Beverly S
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These are all great! Please keep them coming I am taking notes and I am hoping to form a panel of M & M'[s, HUD, and some bank representatives, to present these issues and hopefully address them one by one.
I have two owners of M & Ms on board so far and possibly a HUD Director. so far.
post #8 of 254 (permalink) Old 02-12-2012, 07:15 AM
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Quote:
Originally Posted by Beverly S
I am taking notes and I am hoping to form a panel of M & M'[s, HUD, and some bank representatives, to present these issues and hopefully address them one by one.
I have two owners of M & Ms on board so far and possibly a HUD Director. so far.

Beverly, with all due respect, you are talking about forming a panel that would be seated by the creators of this mess. This is a nationwide problem that is not created by the worker bees in the offices (although it is taught). This is a culture that was started from the top down and it is spelled g r e e d.
The current administration, Banks, HUD, Fannie, Freddie, Safeguard, FAS, etc.

Underbid to get a large contract. Pay less than going rate to complete work. Implement a business model that shorts or chargesback invoices to recoup capitol. Using inexperienced labor to complete work when the qualified contractors cannot continue.
Boiler room deals with cronie insurance companies that cripple the business owner and enable the big boys to escape corporate liability. Creating unreasonable and suffocating requirements and time frames for completing and submitting work orders.

The National Bank Leaders are not interested in creating a plan that benefits anyone but themselves. That is why so many companies participating in this forum are leaving or going only with the locals for work on these properties.

Believing that these are only issues would be a mistake. Again, it is a culture.
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post #9 of 254 (permalink) Old 02-12-2012, 08:47 AM
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Beverly there is enough "complaints" already to write your book
post #10 of 254 (permalink) Old 02-12-2012, 09:38 AM
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Quote:
Originally Posted by Beverly S
These are all great! Please keep them coming I am taking notes and I am hoping to form a panel of M & M'[s, HUD, and some bank representatives, to present these issues and hopefully address them one by one.
I have two owners of M & Ms on board so far and possibly a HUD Director. so far.




Beverly I think your heart is in the right place.

How ever like GTX posted, I don't think its going to change.
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