First lesson learned - REO Property Preservation Forum
 
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post #1 of 8 (permalink) Old 07-02-2013, 11:26 PM Thread Starter
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First lesson learned

I have been in contracting (IT mostly, some construction) for about 13 years but never Pre and Post REO work.

Looking to bail out of IT, I answered an ad from a National looking for contractors in this area. Although they were looking for both Mortgage field inspectors and PP, the emphasis seemed to be more on the Field Inspector Side. They has a short online course and a test afterward followed by a glowing letter that I had passed and that a welcome letter would be soon forthcoming, then...nothing. All indications were given previously that they had recently expanded into this area and were in desperate need. I know now, of course, that they were simply interested in padding their contractor database

I have since learned that this is par for the course, that even if they do come a-callin' I should expect to be chasing only the crap their regular contractors didn't do for some reason. At the rates they pay, clearly considerable volume would be needed to make any of it worthwhile.

Fine. I'm still in the exploration stage, already own most of what I need to get started, and am still soaking up all the info I can. Lets call it live and learn with these guys.

This is what is really chafing at me though.

One of the things I signed was a non-compete agreement, nothing unusual there, been dealing with them for years, but it effectively constrains me from seeking direct contract from any of their clients. Two big problems- first, how the hell would I know who their clients are since I haven't received any business from them, and second, why should I be constrained at all if they haven't provided any evidence that I've been retained by them or that they ever intend to use my services.

Both parties have to provide consideration for a contract to be in effect, and I haven't received any.

I'm thinking of sending them notice that I have changed my mind and would prefer not to enter into an agreement after all as opposed to a "resignation" (an odd term they use considering I'm not an employee) which would be an admission that I consider a contract to be in place to resign from.

Has anyone run into this? Is there some truth to my suspicion that pretending they're interested in using a contractor is a real good way to lock out competition or am I just overthinking this?

Thoughts?
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post #2 of 8 (permalink) Old 07-03-2013, 01:13 AM
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Depending on your state laws, a non-compete can be nearly impossible and insanely expensive to enforce.
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post #3 of 8 (permalink) Old 07-03-2013, 09:24 AM
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I know of no instances where a non compete was enforced.
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post #4 of 8 (permalink) Old 07-03-2013, 07:37 PM
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If they have ever not enforced one then they have undermined their own ability to enforce the one you signed.
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post #5 of 8 (permalink) Old 07-04-2013, 08:42 AM
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Quote:
Originally Posted by Gypsos View Post
Depending on your state laws, a non-compete can be nearly impossible and insanely expensive to enforce.

And if you do live in a state where it is enforceable, the company must have compensated you in some way for your agreement to not compete before it would ever be enforced.

Iíve already told you more than I know.
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post #6 of 8 (permalink) Old 07-25-2013, 11:12 AM
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Check yer head...

No disrespect, but you want to get out of a respected, legitimate, likely career oriented and well paying line of work for THIS racket?!?!?!

Good luck, my man. You will need it.

Also, read the non-compete VERRRRRY carefully. Depending on how it's worded and verbiage, there's a (very good) chance they don't want YOU setting up shop to compete at their level. After all, most order mills WANT you to work for more than one company so you look less like an employee and more like a sub-c in the eyes of the law.

Last edited by Cocky Rocky; 07-25-2013 at 11:21 AM. Reason: more thoughts
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post #7 of 8 (permalink) Old 07-25-2013, 08:28 PM
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Originally Posted by PropPresPro View Post
And if you do live in a state where it is enforceable, the company must have compensated you in some way for your agreement to not compete before it would ever be enforced.

And if you can prove they chose not to enforce it one time in the past it will negate the ability for them to enforce it upon you because then it is discrimination. And God help them if you are not a heterosexual white male because then it is illegal to discriminate against you.

FYI - It costs a company between $10,000 and $50,000 to properly enforce one because basically they must sue you to enforce it. I worked at a place that had very well written non-competes for the sales staff and they chose to forgo enforcing them because of the cost.
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post #8 of 8 (permalink) Old 08-22-2013, 06:00 AM
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I agree with Cocky Rocky.

Not a real wise career decision to be making there.

This is one tiny example of many. http://www.preservationtalk.com/showthread.php?t=2751

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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