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post #1 of 35 (permalink) Old 11-02-2015, 11:38 AM Thread Starter
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National employee

Hi all! My name is Nick, and I am on the evil side of prop pres (I work/have worked for nationals). I want to give a different view of the issues that many of you have been having, but first I want to give a little bit of my background. I got started in this industry a short 2 1/2 years ago with a national pres company (I am not going to use names at this time), where I started as a lowly processor, and eventually made my way to the head of the field tech support department. After two years, I was offered a better position from one of the vendors that I worked with, and went to work with them, at the regional level. After moving away from my first experience with this industry, and going from a national level to a regional level, I noticed all of the mistakes that the national was making (the regional still works for that national). I had noticed many things that seemed wrong when I was at the national, but I didn't truly understand how or why, until I made my way to the regional level. I worked with the regional vendor for 6 months, during which I did a few evictions and initial secures, personally (I still was a desk jockey though). I now work for a national preservation company that deals mainly with repair and rehab orders, not so much of the lock changes and grass cuts. I am going to hopefully be adding my two sense in to the discussions, and hopefully be able to give some good advice, especially with my experience in the national market. If anyone has any questions, please do not hesitate to PM me! Thank you!
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post #2 of 35 (permalink) Old 11-02-2015, 01:42 PM
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I would like to hear your insight on bids approved at reduced rates.
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post #3 of 35 (permalink) Old 11-02-2015, 01:57 PM Thread Starter
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I would like to hear your insight on bids approved at reduced rates.
In my experience, the only discrepancies that can be argued directly to the national are BATF bids. Bid approvals that come back from the a national are sent at the approved amount from the bank/mortgage company. When I was working for the first national, there were many times where I had to discuss pricing with my vendor network. I would be given the exact approval from NOVAD or WF, or whoever the approval came from, with all of the information. While the approvals were normally near the bids provided, many times, the approval was at a significantly lower price. At that point, there is nothing that most nationals are willing to do, as if they re-submit the bid again, it will most likely be approved at the same amount, and they will look bad to their client. Now, I am not saying that the nationals are never at fault. The nationals obviously take their cut of the approval, but from my personal experience, more often than not, the national was not trying to screw anyone over, and actually would take some losses to get work completed (just as some contractors do, to ensure they get the profitable work). I truly believe that the complaints that contractors have are very similar to the complaints that the regionals have of nationals, and that the nationals have of their clients. I hope that helps, sorry for rambling on! If you have a specific instance, let me know and I can see if I can provide any advice!
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post #4 of 35 (permalink) Old 11-02-2015, 06:39 PM
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The more pertenant question is

Quote:
Originally Posted by NickT View Post
In my experience, the only discrepancies that can be argued directly to the national are BATF bids. Bid approvals that come back from the a national are sent at the approved amount from the bank/mortgage company. When I was working for the first national, there were many times where I had to discuss pricing with my vendor network. I would be given the exact approval from NOVAD or WF, or whoever the approval came from, with all of the information. While the approvals were normally near the bids provided, many times, the approval was at a significantly lower price. At that point, there is nothing that most nationals are willing to do, as if they re-submit the bid again, it will most likely be approved at the same amount, and they will look bad to their client. Now, I am not saying that the nationals are never at fault. The nationals obviously take their cut of the approval, but from my personal experience, more often than not, the national was not trying to screw anyone over, and actually would take some losses to get work completed (just as some contractors do, to ensure they get the profitable work). I truly believe that the complaints that contractors have are very similar to the complaints that the regionals have of nationals, and that the nationals have of their clients. I hope that helps, sorry for rambling on! If you have a specific instance, let me know and I can see if I can provide any advice!
what makes a national think a contractor should honor a reduced bid? Why waste the contractors time in the first place, if you are just going to make the numbers up? Why does a national not have anyone with negotiating or sales skills to get the number the contractor bid?

Oh, sorry almost forgot, welcome to the forum.
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post #5 of 35 (permalink) Old 11-02-2015, 07:21 PM
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To add to the comment above. Especially when the price is per the repair base that they use to reduce bids but will even reduce the repair base bids. If they are truly only making the discount, wouldn't it benefit the national to use common sense and stick with the cost estimates? This makes me think they are pocketing the difference. In fact I have proof of this from reps mistakenly sending me bid reduction emails but the price being more than I actually bid.
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post #6 of 35 (permalink) Old 11-03-2015, 08:01 AM
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Why are we required to spend hour upon hour bidding properties this way and that only to have the bank turn them over to realtors full of debris.
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post #7 of 35 (permalink) Old 11-03-2015, 08:06 AM
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Why are we required to spend hour upon hour bidding properties this way and that only to have the bank turn them over to realtors full of debris.

How about why are we required to bid EVERYTHING that a property needs knowing that they won't approve it, but if we forget something we have to fix it for free or get backcharged because they sent someone else to do it instead. Instead either pay us to place these bids (not a dumb trip charge) or give us a list of items they will approve and only require us to bid those items.
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post #8 of 35 (permalink) Old 11-03-2015, 08:13 AM Thread Starter
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Quote:
Originally Posted by Ohnojim View Post
what makes a national think a contractor should honor a reduced bid? Why waste the contractors time in the first place, if you are just going to make the numbers up? Why does a national not have anyone with negotiating or sales skills to get the number the contractor bid?

Oh, sorry almost forgot, welcome to the forum.
Thank you for the welcome! Obviously I cannot speak for all nationals, or even for a full company, I can only advise what I have seen. I did not work directly in the bid department, but worked closely with them on multiple occasions. From what I saw, the only time that the company I worked for would cut the bid is if the approval came back lower than the bid. I wholeheartedly agree with the fact that they should be approved right away, at the bid price, when using RepairBase, but it doesn't always work like that. I have seen approvals come back from the national's client, which was cut from the RB amount. At this point, the national doesn't really have a choice, other than to get it completed for the approval amount, or risk causing an issue with the bank/client. Please remember, there may have been other options, but this was the information that was provided to me while working there. I know the approvals that the national I worked for came back from NOVAD, which is basically just an order mill for approvals. The approval comes back in the form of an email, with check boxes for reasoning. As far as I know, the bid department did not even speak to this company, other than receiving the emails, so the sales skills would be completely useless, unfortunately.
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post #9 of 35 (permalink) Old 11-03-2015, 08:21 AM Thread Starter
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Why are we required to spend hour upon hour bidding properties this way and that only to have the bank turn them over to realtors full of debris.
Unfortunately, I do not have an answer for this. I really wish I knew. I do not have many contacts with the banks, only from nationals down. I promise this is not a shameless plug, but the company I work for now (If anyone wants to know they can PM me) does not require bids from our vendors. We use the inspection photos and reports (we require full property inspections, and actually pay for them) to bid out the property, in office, to cut down on our vendors time. I honestly think that the banks giving the work to the agent's is one of the shadiest moves in the industry. If the item is going to be sent to the agent, the contractor's information should be sent as well, and at least suggested that they be the ones to complete. As much as someone could state that I am defending the nationals, I like to think (hope) that all of my contractor friends know that I am one of the few people in the national game that stand up for them, and argued with my superiors (not needed anymore at my current company) when I saw something that didn't look right.

Sorry for the book, I just can't stop once I get going sometimes =3.
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post #10 of 35 (permalink) Old 11-03-2015, 08:25 AM Thread Starter
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Originally Posted by madxtreme01 View Post
How about why are we required to bid EVERYTHING that a property needs knowing that they won't approve it, but if we forget something we have to fix it for free or get backcharged because they sent someone else to do it instead. Instead either pay us to place these bids (not a dumb trip charge) or give us a list of items they will approve and only require us to bid those items.
I am not 100%, but I do believe that the necessity of providing a bid for everything that can be bid at a property is more of an insurance issue than anything else. If anything isn't bid, and let's say a bank rep visits a property and sees something that wasn't bid, are they are going to request that a bid be placed, or are they going to demand it be completed for free, as it was not reported prior? Once again, I could be wrong, but from my experience I believe the latter to be true. Let me know if anyone has experience in dealing with something like this that dissents from my opinion, please!
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