Property preservation - REO Property Preservation Forum
Reply
 
LinkBack Thread Tools Display Modes
post #1 of 90 (permalink) Old 07-23-2012, 02:28 AM Thread Starter
Junior Member
 
Join Date: Jul 2012
Posts: 24
Thanks: 0
Thanked 0 Times in 0 Posts
Property preservation

Hello,

I am new to this forum and would like to pose a question. I have been working for a neighbor who owns his own property preservation business. I have an opportunity to purchase his existing business, if a small business loan is obtainable, or try and start my own. My primary source of income is teaching high school, however, I was lured into how much money could be made in this line of work. In addition, I would think it could be a great family business that my eldest son and daughter could run for me after they become skilled. I have read some of your threads and it seems as if this is a very stressful endeavor. We spent 15 hours at one house doing trash out and cleaning and I saw what my neighbor was being paid. Moreover, I have seen how much can be brought in for installing water heater straps, CO2 detectors, and fire alarms. I hope that you are open, honest , and I appreciate your candor. As stated, I think if this could work, my son could find his way in life and this could possible be the stepping stone he may need. Not to get to personal, he has hopped from major to major in college and hasn't decided what he wants to be when he "grows" up. Thank you

88
88smileys is offline  
Sponsored Links
Advertisement
 
post #2 of 90 (permalink) Old 07-23-2012, 04:41 AM
Kent Whitten
Guest
 
Posts: n/a
I think your neighbor is handing you a big pile of ****. Don't fall for it. Ask him for his financials from the last 3 years if it is such a huge money maker.

Side note, you are not saving your son from anything. He needs to find his own way. It's tough, but let him go and find what he needs to learn.
post #3 of 90 (permalink) Old 07-23-2012, 06:06 AM
Super Moderator
 
BPWY's Avatar
 
Join Date: Apr 2012
Location: MT
Posts: 4,096
Thanks: 1,470
Thanked 774 Times in 468 Posts
88, Kent had some good advice.


Also ask your neighbor about the charge backs and slow pays out to 60 to 90 and even farther days out.
Before you think hes making a killing ask to see what hes actually made at the end of each year. ESPECIALLY in the last year.

As for your boy............. whose to say he won't hop out of the family business right when you need him the most?
BPWY is offline  
Sponsored Links
Advertisement
 
post #4 of 90 (permalink) Old 07-23-2012, 07:55 AM
FremontREO
Guest
 
Posts: n/a
I'll keep my mouth shut.
post #5 of 90 (permalink) Old 07-23-2012, 08:13 AM
Super Moderator
 
GTX63's Avatar
 
Join Date: Apr 2012
Location: Your House Soon...Soon
Posts: 3,186
Thanks: 676
Thanked 2,249 Times in 1,094 Posts
There are a fraction of companies making a comfortable profit at this business vs even three years ago. REO/Preservation is not a long term business model. It is now, at best, a side job to supplement your main revenue streams.
GTX63 is offline  
post #6 of 90 (permalink) Old 07-23-2012, 09:18 AM
mbobbish734
Guest
 
Posts: n/a
Quote:
Originally Posted by GTX63
There are a fraction of companies making a comfortable profit at this business vs even three years ago. REO/Preservation is not a long term business model. It is now, at best, a side job to supplement your main revenue streams.
What he said. There's no gold at the end of the rainbow. Can you make a comfortable living? Yes, but if your teaching now you probably make more and work less hours. Why is he getting out?
post #7 of 90 (permalink) Old 07-23-2012, 10:31 AM Thread Starter
Junior Member
 
Join Date: Jul 2012
Posts: 24
Thanks: 0
Thanked 0 Times in 0 Posts
Thank you

Where to start? I know that it sounds fishy, but my friend is a realtor, just sold his last house (for a huge profit) he then bought a local business. I am in no way thinking about getting out of teaching ever, I just thought maybe if I could do this two days a week and my son did it three days a week, that we could supplement our incomes. I know that my son needs to make his own decisions in life, but we did one house together and he has my same drive in life. In addition, he makes sure that things get done right and doesn't take unnecessary short cuts like I've heard others do. I want to thank everyone for their response. There was some great info, keep it coming if you feel that it is important to know. I am more than happy to just teach and never walk into another disgusting home. I love teaching high school, but the $2k trash outs and the $800 water heater straps, CO2 and fire detector jobs I thought were standard. Thanks

88
88smileys is offline  
post #8 of 90 (permalink) Old 07-23-2012, 10:44 AM
mbobbish734
Guest
 
Posts: n/a
Quote:
Originally Posted by 88smileys
Where to start? I know that it sounds fishy, but my friend is a realtor, just sold his last house (for a huge profit) he then bought a local business. I am in no way thinking about getting out of teaching ever, I just thought maybe if I could do this two days a week and my son did it three days a week, that we could supplement our incomes. I know that my son needs to make his own decisions in life, but we did one house together and he has my same drive in life. In addition, he makes sure that things get done right and doesn't take unnecessary short cuts like I've heard others do. I want to thank everyone for their response. There was some great info, keep it coming if you feel that it is important to know. I am more than happy to just teach and never walk into another disgusting home. I love teaching high school, but the $2k trash outs and the $800 water heater straps, CO2 and fire detector jobs I thought were standard. Thanks

88
I'll tell you right now that's nowhere near normal pricing. With your neighbor being a realtor ill bet he's falsifying bids to get them prices(seen it before) and once he's gone so are those prices. Not to mention its illegal. What he did in that house would normally be about $500-600 total and that's if your lucky. The Realtors doing this are coming under fire lately. Also thus business is not 5 days a week its 24/7 and if can't do that your out.
post #9 of 90 (permalink) Old 07-23-2012, 10:54 AM Thread Starter
Junior Member
 
Join Date: Jul 2012
Posts: 24
Thanks: 0
Thanked 0 Times in 0 Posts
Now these are the things I need to know. I've seen the invoices that say $690-$890 per. I know that a minor trash out, plus yard maintenance, plus CO2, water heater straps, and smokes were the higher money. I do not know if $2k trash outs are real? Ive had to take about a thousand pics while performing the banks work, I've had to go on call backs, which lower your bottom line. I want honesty and it seems like its coming. I've read and heard Nationals can make you/break you/cause you to go insane. He told me that there were months he was carrying $35k-$55k in debt waiting for payments. His wife (co-owner/secretary) would have to be on the phone all day sending in invoices, demanding payment, and getting nit picked about every little thing they did at each house. Keep it coming, I need to know it all. Besides, no one on this planet will give me a S B A loan for cleaning/fixing foreclosed reo properties.

88
88smileys is offline  
post #10 of 90 (permalink) Old 07-23-2012, 11:37 AM
Super Moderator
 
BPWY's Avatar
 
Join Date: Apr 2012
Location: MT
Posts: 4,096
Thanks: 1,470
Thanked 774 Times in 468 Posts
I've done trash outs that were North of 10k.
Are they common? Nope, but can happen.
Even 2k isn't common in my area.
BPWY is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the REO Property Preservation Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome