For anyone who is looking to get into this business - REO Property Preservation Forum
 
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post #1 of 10 (permalink) Old 07-23-2015, 10:59 AM Thread Starter
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For anyone who is looking to get into this business

I wanted to create a post for anyone who is looking to get into P&P business for any unknown reason. We started in this industry many years ago when depression hit the real estate market and private sector dried up. Regionals were not screwed up to the point they are screwed up now, prices and volume was still there and then law suits hit. If you ask why did this happen? Many of them got too comfortable and felt that they are too big to fall. After few nice lawsuits, especially the one in IL, there was a wake up call and then everything became contractor's fault. Good contractors started to flee industry with newbies coming on board every day and leaving even faster after few charge backs and no pays. And there was created never ending cycle of dissatisfied banks, pissed vendors and regionals in between, kicked by both banks and vendors. All I can say, we safely got out of this crappy business, I said few words to Safeguard just another day where I hope never hear from them again and never felt better. For anyone who still thinks it's good idea to get in, just don't do it. Market is in the better place now, there is work out there. With the low volume in foreclosures, all the regionals like a pack of the dog that goes after one bone and only seeing their profit as a driver, this is not the safe place for any contractor. So, I think it's a day when we say good buy to this industry officially, even though we still have one client for rehabs left.
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post #2 of 10 (permalink) Old 07-23-2015, 11:16 AM
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Thanks I hear you loud and clear I'm one of those newbs your talking about . I'm going to stay in until I can pay off the start up expenses and then I'm out. If I get payed Haha
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post #3 of 10 (permalink) Old 07-23-2015, 05:20 PM
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I have 80 work orders and I'm training a new guy. He asked me how much money is that?

I thought Hmmm...? What a great question.

80 work orders? what do you guys think? $4,500.00?
$45,000.00?
$6,000.00?

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post #4 of 10 (permalink) Old 07-23-2015, 08:27 PM
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Quote:
Originally Posted by Craigslist Hack View Post
I have 80 work orders and I'm training a new guy. He asked me how much money is that?

I thought Hmmm...? What a great question.

80 work orders? what do you guys think? $4,500.00?
$45,000.00?
$6,000.00?

If they are grass cuts, tell him $15 a pop up to 1 acre.......



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post #5 of 10 (permalink) Old 07-23-2015, 11:18 PM
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Quote:
Originally Posted by Craigslist Hack View Post
I have 80 work orders and I'm training a new guy. He asked me how much money is that?

I thought Hmmm...? What a great question.

80 work orders? what do you guys think? $4,500.00?
$45,000.00?
$6,000.00?

I wouldn't be a bit surprised if $45K was the # as that's only a $560ish per order average but, this time of year there has to be a high percentage of recurring grass cuts within that 80 - Without a sizable amount of exception fees involved, I'm guessing $6K.
What do I win?

Iíve already told you more than I know.
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post #6 of 10 (permalink) Old 07-24-2015, 12:16 AM
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Originally Posted by BRADSConst View Post
If they are grass cuts, tell him $15 a pop up to 1 acre.......
You big spender... Who was it here that offered re-cuts for just $9?
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post #7 of 10 (permalink) Old 07-24-2015, 12:17 AM
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Quote:
Originally Posted by Craigslist Hack View Post
I have 80 work orders and I'm training a new guy. He asked me how much money is that?

I thought Hmmm...? What a great question.

80 work orders? what do you guys think? $4,500.00?
$45,000.00?
$6,000.00?

My answer would be D, Not enough.
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post #8 of 10 (permalink) Old 07-24-2015, 06:44 AM
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My first thoughts after getting that question would be that either
a) this guy is in the early stages of recognizing opportunity and may someday be a business owner himself.
b) this guy is a mope who thinks I get to keep every penny of that figure for myself and paying him next to nothing at the same time. Therefore, he is justified and more than willing to slack off, borrow/steal and generally believe that life owes him and I'm the teller at the pay window.
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post #9 of 10 (permalink) Old 07-24-2015, 09:33 AM
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Originally Posted by GTX63 View Post
My first thoughts after getting that question would be that either
a) this guy is in the early stages of recognizing opportunity and may someday be a business owner himself.
b) this guy is a mope who thinks I get to keep every penny of that figure for myself and paying him next to nothing at the same time. Therefore, he is justified and more than willing to slack off, borrow/steal and generally believe that life owes him and I'm the teller at the pay window.



Re.... "B"



You've interviewed most all of my former employees???


















Oh I got it, their cousins have worked for you. My bad. Carry on

Professionals are people who can do their job when they don't feel like it.
Amateurs are people that can't do their job even when they do feel like it.
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post #10 of 10 (permalink) Old 07-24-2015, 01:33 PM
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It was a thought provoking question. There are now 105 and our average work order is 72.00 when you factor in trip charges and recuts. So I have it at $7,560.00 give or take.

I'm not sure I really ever looked at it like this but that's the hard way to make 7,500.

Food for thought do with it what you will.
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