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post #1 of 6 (permalink) Old 03-15-2016, 11:26 PM Thread Starter
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Another New Startup Question

Hey Gang!

My name is Ron and I have a quick question for you seasoned vets about starting a trashout biz in Texas.

I searched for this specific topic and didn't come up with anything so I apologize if this has been asked 1,000 times already.

The area I am located in Texas is currently being slammed by the downturn oil economy that I am currently employed in and I have been reading a lot about REO, junk hauling, trashouts, and several other property solution I can offer. I also have a very good contact that is the sales manager for a rather large real estate company here locally. She is making us first call for the 100+ realtors she has working for her. She has also graciously given me several contacts for builders, asset managers, and other agents in the area.

I have spoken to one asset manager that tells me that there is nobody in the area actively advertising any sort of Google search pulls up exactly zero competition anywhere nearby. The asset manager uses nationals and he says that Cyprexx has actually sent a lawn maintenance crew here from 6 hours away to cut two yards. He also told me that there is a pretty big demand for REO services in this area and he expects the next 6-8 months to get really busy.

There is approximately 500,000-600,000 people here within a 100 mile radius and with the amount of foreclosures, rent house vacancies, and apartments being emptied I feel like this is a perfect time to get started. I have been handing out business cards like mad so far, built a website, and started building a FB page. I am doing all of this with a partner also so he is helping out with all the loose ends and finding equipment.

So I guess my question is.. If you were in an area that had zero competition, half a million people, and a collapsing economy would nationals be the way to go or should I attack this from a different angle?

Also is this something I can work part-time while also having a full-time job with a partner that will be available all the time?

Thanks for any and all answers! (even the snarky ones)
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post #2 of 6 (permalink) Old 03-16-2016, 08:16 AM
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Welcome.

Speaking from experience, the only partner I'll ever have again will have my ring on her finger.
Best contact you have won't be a national, it will be the property manager with 100+ realtors on call. Her contractor list is worth more than any abc regional.
Sounds like you have done some homework on whether to start up a preservation business.
I don't look at whether an area is saturated with nationals; I look at whether I have the ability to do what I claim to and can make a living according to my skills. Middleman shouldn't factor into that.
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post #3 of 6 (permalink) Old 03-16-2016, 08:47 AM Thread Starter
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Yeah I am a little apprehensive about the whole partner thing, but he has been doing handyman services for a while so I am hoping he will be useful. Also, he was recently laid off and can devote a lot more time to the actual work side of things while I focus on getting customers.

I have been reading these forums non-stop trying to learn everything I can to make the transition a little smoother. I am also very protective of my image and refuse to do a bad job and I hope any customers will recognize that. I appreciate your feedback, I will continue bombarding realtors in the area.

One quick question.

What type of banks should I focus on trying to get business from? There are several banks and credit unions in the area, some national branches, and some local banks.

Thanks again.
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post #4 of 6 (permalink) Old 03-16-2016, 12:39 PM
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Quote:
Originally Posted by missingxxlink View Post
Yeah I am a little apprehensive about the whole partner thing, but he has been doing handyman services for a while so I am hoping he will be useful. Also, he was recently laid off and can devote a lot more time to the actual work side of things while I focus on getting customers.

I have been reading these forums non-stop trying to learn everything I can to make the transition a little smoother. I am also very protective of my image and refuse to do a bad job and I hope any customers will recognize that. I appreciate your feedback, I will continue bombarding realtors in the area.

One quick question.

What type of banks should I focus on trying to get business from? There are several banks and credit unions in the area, some national branches, and some local banks.

Thanks again.
If you have those connections you're miles ahead of us starting out scrapping for nickels with the regionals. Keep pounding away with that list of contacts and eventually you'll start building a reputation with them. I've spent the last year doing lock changes for a realtor that I've known for about 10 years now. She actually got me started on this work about 3 years ago. She finally called a few days ago, contractors did the trash out on the interior of the house, dumped it in the back yard, and they didn't realize it until after they had paid them for it. I provided a bid with photos and now I'm waiting to hear back. It's lower than HUD rate but more than I would get with a national. I'm hoping realtors around here are starting to see the problem with the Nationals. The main point is don't expect to get full rehab contracts and trash outs the first time you call, it'll take time to win them over but you're off to a great start.
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post #5 of 6 (permalink) Old 03-16-2016, 02:14 PM
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And I started while working full time. I covered between 4-6 counties. Only time I used helpers was on bigger jobs. I was working in law enforcement at the time so rotating shifts made it easy to work on days off.
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post #6 of 6 (permalink) Old 03-16-2016, 06:00 PM
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Nationals

i've been with nationals for about 7 years now, there have been bumps in the road but have made a
good living and able to work alongside my wife.
We have office, employees and subs that we treat
as family. The biggest thing is I feel that the national
I'm with pays very well along with bid approvals,
They will test you and ask you to complete jobs
at a low price ( stick to your price and don't accept
less) I would diversify and find 1 or 2 nationals to
help pay bills while your building clientele.
I'm also in Texas, if any questions contact me directly.
Ken
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