How do I work directly with banks and RE agents - REO Property Preservation Forum
Reply
 
LinkBack Thread Tools Display Modes
post #1 of 20 (permalink) Old 07-24-2014, 08:05 AM Thread Starter
Junior Member
 
Join Date: Jul 2014
Posts: 14
Thanks: 0
Thanked 6 Times in 6 Posts
How do I work directly with banks and RE agents

Hello,

I need advice and insight from anyone who has been successful in generating work directly with local banks and RE agents.

I have been in the business for several years, but now I want to skip the nationals and generate my work directly with banks and agents as much as I possibly can.

I have tried calling several banks and agents, but keep hitting a brick wall. I get a wide range of excuses, but it seemed that they hang up as quick as they answered my call after telling me they have no idea how my services would benefit them.

Who should I be asking for at the banks (department or title of the decision maker)?

What is the best "pitch" or angle that gets the best response?

What pricing do you pitch? HUD pricing or something different?

Thanks

Carl
carlfryguy is offline  
The Following User Says Thank You to carlfryguy For This Useful Post:
LaCaSa (07-24-2014)
Sponsored Links
Advertisement
 
post #2 of 20 (permalink) Old 07-24-2014, 01:32 PM
Senior Member
 
LaCaSa's Avatar
 
Join Date: Apr 2014
Location: Central Fl
Posts: 163
Thanks: 220
Thanked 23 Times in 18 Posts
These are great questions, I dont have the answers considering im in the same boat.
LaCaSa is offline  
post #3 of 20 (permalink) Old 07-24-2014, 08:01 PM
Member
 
Join Date: Feb 2014
Location: Phoenix, AZ
Posts: 53
Thanks: 42
Thanked 22 Times in 9 Posts
In person.

Your phone call should only be initially used to find out more information about your client. An example would be calling a local bank and asking them if they have a property preservation department. If you get a confused response that's probably because the bank's portfolio is too small to have a department for it to make sense for them. In this case write yourself a list of questions you want to find out about the client. It's like a job interview, you want to read up on them to impress them. As for real estate agents you have to make it make sense for them. Whatever you do, NEVER offer kick backs or referral fees, so you'll need to think about what you can offer them as a benefit if a real estate agent is to send you business. Once you've gotten that...

Show up during business hours in professional business attire. You're now a salesman so you need to be dressed to impress. Bring a presentation with you, even if it is a simple binder with before/during/after photos of work you've completed. Go up to the receptionist or gate keeper and ask to speak with the manager of the property preservation department (if they have one). Make sure to make your presentation roughly 10-20 minutes or less. Always respect that their time (as well as yours) is valuable. Ask them questions that will get more than just a yes/no response to engage and have the client tell you what they are looking for, or not looking for. LISTEN to them. Very very important. Once you've found out what they are in need of, tell them why you can help them.

If after all of that it doesn't work, tell them that you are unable to take no as an answer, and then ask them what you can do to earn their business right now. Every client has a motivating factor, i.e. price, coverage, etc. so let the negotiation begin. Lastly, if you still can't close the deal, tell them you know for a fact that they would be making a mistake to not give you business and offer to do something for them at a deep discount - or even for free so the client can see your work quality, professionalism, and overall ethics. Just get them to hire you, like I said even for free. It's a psychological tactic, getting them to get used to sending you work. Other than that, I suggest to just be yourself. I mean after all that's what building relationships is all about.
TheGreanTeamInc is offline  
The Following 10 Users Say Thank You to TheGreanTeamInc For This Useful Post:
Aimpoint Inspections (08-14-2015), ARCleaningServices (08-25-2015), BPWY (09-07-2015), BRPPREO (07-31-2014), DarkWaltz (10-28-2014), EKH LLC (07-24-2014), LaCaSa (07-24-2014), LisaSOLO (06-10-2015), NC HVAC DOC (09-17-2015), suzanne (05-24-2015)
Sponsored Links
Advertisement
 
post #4 of 20 (permalink) Old 07-24-2014, 11:38 PM Thread Starter
Junior Member
 
Join Date: Jul 2014
Posts: 14
Thanks: 0
Thanked 6 Times in 6 Posts
Hi Greanteam

That was a great response. And did give me a lot to mull over.

What are some good initial questions to ask to learn more about the potential client when calling? When showing up in person? I know every bank/agent is different, but I need some good ideas to get the gears in my mind rolling.

Thanks again
carlfryguy is offline  
The Following User Says Thank You to carlfryguy For This Useful Post:
LaCaSa (07-25-2014)
post #5 of 20 (permalink) Old 07-25-2014, 07:24 PM
Member
 
Join Date: Feb 2014
Location: Phoenix, AZ
Posts: 53
Thanks: 42
Thanked 22 Times in 9 Posts
Quote:
Originally Posted by carlfryguy View Post
Hi Greanteam

That was a great response. And did give me a lot to mull over.

What are some good initial questions to ask to learn more about the potential client when calling? When showing up in person? I know every bank/agent is different, but I need some good ideas to get the gears in my mind rolling.

Thanks again
Primarily for banks most of the information can be found on their websites. Some real important things to find out would be whether or not they are really heavy into the mortgage business or whether that is a small division for them. You can simply browse their website and do some research on them locally to see whether or not they even are a client to pursue. Next is to find out about how many branches they have (when you make your pitch you should also include servicing their branches as well as their portfolio). Give them a reason to pick you, show them you know just as much about the client as the client knows about themselves. When on phone you are going to want to figure out how they operate, do they have P&P or is it simply an Asset Manager or Lending Supervisor that you will deal with etc. I would also get names of the heads of the department so that way when you walk into the location and speak with the gatekeeper you can speak with an authority as if you already knew the P&P manager or Asset Manager beforehand.

As for real estate agents I would research whether or not they are new or seasoned veterans in the business. If they are new you are more likely to get in with them as a contractor; however, they are less likely to provide you a decent amount of business because they are still building their business. An advantage to them being new is that you can refer them business as well to help them out. If they are a veteran you have a 50/50 chance that they do not already work with someone they trust. Some realtors have worked with the same group of people for years and they won't just throw that away. It's all about numbers. The more people you talk to, the more sales you close.

The entire process in your mind must be revolved around building relationships because that is what business is all about. These banks and agents will want a more personal relation with you vs. the nationals who just assign you a # so when they need another person in your area they can pull your name from the list. I'd also suggest to cross-market your services to homeowners and also to second homeowners. In Arizona, California, Florida, Texas, and the states that get an influx of residents in the winter you have a goldmine with people who will need their properties maintained while they are gone. Lastly, if you are a BOTG contractor you should really think of pitching to apartment complexes, retail stores, commercial buildings, local airports, strip malls, shopping centers, gas stations, and all the other real estate buildings in your area.

We got a guy here hooked up with a Circle K contract to power wash all of their stations in a metropolitan area. He goes in at night and it takes him or one of his guys about an hour to complete and they get paid roughly $120 every visit. It's a one man job and requires very little in equipment costs to get that type of contract. Restaurants outsource cleaning of their windows, landscaping, and sometimes janitorial. There is a service required for every business. Pest control is also huge as well. I mean seriously there are many ways that you can grow your business. Think out of the box. Cross-market your services.
TheGreanTeamInc is offline  
The Following 2 Users Say Thank You to TheGreanTeamInc For This Useful Post:
LaCaSa (07-25-2014), LisaSOLO (06-10-2015)
post #6 of 20 (permalink) Old 07-26-2014, 02:45 AM
Senior Member
 
thanohano44's Avatar
 
Join Date: Aug 2012
Posts: 2,016
Thanks: 1,397
Thanked 289 Times in 168 Posts
Quote:
Originally Posted by TheGreanTeamInc View Post
Primarily for banks most of the information can be found on their websites. Some real important things to find out would be whether or not they are really heavy into the mortgage business or whether that is a small division for them. You can simply browse their website and do some research on them locally to see whether or not they even are a client to pursue. Next is to find out about how many branches they have (when you make your pitch you should also include servicing their branches as well as their portfolio). Give them a reason to pick you, show them you know just as much about the client as the client knows about themselves. When on phone you are going to want to figure out how they operate, do they have P&P or is it simply an Asset Manager or Lending Supervisor that you will deal with etc. I would also get names of the heads of the department so that way when you walk into the location and speak with the gatekeeper you can speak with an authority as if you already knew the P&P manager or Asset Manager beforehand.



As for real estate agents I would research whether or not they are new or seasoned veterans in the business. If they are new you are more likely to get in with them as a contractor; however, they are less likely to provide you a decent amount of business because they are still building their business. An advantage to them being new is that you can refer them business as well to help them out. If they are a veteran you have a 50/50 chance that they do not already work with someone they trust. Some realtors have worked with the same group of people for years and they won't just throw that away. It's all about numbers. The more people you talk to, the more sales you close.



The entire process in your mind must be revolved around building relationships because that is what business is all about. These banks and agents will want a more personal relation with you vs. the nationals who just assign you a # so when they need another person in your area they can pull your name from the list. I'd also suggest to cross-market your services to homeowners and also to second homeowners. In Arizona, California, Florida, Texas, and the states that get an influx of residents in the winter you have a goldmine with people who will need their properties maintained while they are gone. Lastly, if you are a BOTG contractor you should really think of pitching to apartment complexes, retail stores, commercial buildings, local airports, strip malls, shopping centers, gas stations, and all the other real estate buildings in your area.



We got a guy here hooked up with a Circle K contract to power wash all of their stations in a metropolitan area. He goes in at night and it takes him or one of his guys about an hour to complete and they get paid roughly $120 every visit. It's a one man job and requires very little in equipment costs to get that type of contract. Restaurants outsource cleaning of their windows, landscaping, and sometimes janitorial. There is a service required for every business. Pest control is also huge as well. I mean seriously there are many ways that you can grow your business. Think out of the box. Cross-market your services.

This email reminds me of what started the decline of this industry.
thanohano44 is offline  
The Following User Says Thank You to thanohano44 For This Useful Post:
ARCleaningServices (08-25-2015)
post #7 of 20 (permalink) Old 07-27-2014, 12:57 AM Thread Starter
Junior Member
 
Join Date: Jul 2014
Posts: 14
Thanks: 0
Thanked 6 Times in 6 Posts
Thanohano... greed tied with no oversight is what started the decline of the industry not what was mentioned in that post. A massive expensive foreclosure mess was created, the banks did not want to pay for it, no one was looking at what the nationals were doing, lots of desperate unemployed people in RE looking to make ends meet, and the internet made it easy for them to find these people for pretty much free. So the nationals fleeced the industry and the banks made them richer than rich to do it, intentional or not.

Between HUDs Audit from 2012 and the OIG's audit from March 2014, it's only a matter of time before someone tells the nationals to crack open their books and show what the contractors are actually getting paid. Assuming they overlook the fact that any national that provides training has misclassified an employee as a contractor. (IMO trained is a red flag that says you are not a vendor, because by definition a vendor is a trained knowledgeable expert, which is why you contact with a vendor). Some nationals are smart and have switched to a 20% discount, which most courts would agree is an fair management fee for a national. The nationals who charge banks $100 for a grass cut and then give the contractor $30 are going to get their you know what handed to them. Since when does a management company retain 70% of the payment. Would you hire a management company to rent your house out for you if they charged you 70% of the monthly payment?) After all, HUD fees (aka government funds) are designed to pay contractors to ensure they perform high quality professional services. I am not a lawyer, but I believe defrauding the government is a federal offense. Read the actual guidelines and not just the matrix, it will be an awakening. The OIG audit is a clear stepping stone to sue for defrauding the federal government. The OIG foudn problems, you can bet your farm that they are digging deeper as we speak with a follow up audit. The OIG is all about preventing fraud and abuse of government funds. Best case, they get a fine. Worse case, a lot of the owners and executives will serve time, get fined, and be stripped of their assets.

Personally, I just want to be compensated fairly (cover contractors increased overhead that has been thrown on us, hire great employees to help with my work orders plus make a profit so I can put a little something away when I retire) and treat me with respect.

The quality problem is a no brainer in this industry. Highest contractor costs tied with lowest fees ever. They knew what was going to happen. Why do you think insurance became a requirement right around the time fees started dropping like a brick? It was not about blurrying the line between contractor and emplyee, it was about protecting their cash from the poor business decisions they all were making.
carlfryguy is offline  
The Following User Says Thank You to carlfryguy For This Useful Post:
deputy138 (09-06-2015)
post #8 of 20 (permalink) Old 07-27-2014, 05:38 AM
Senior Member
 
thanohano44's Avatar
 
Join Date: Aug 2012
Posts: 2,016
Thanks: 1,397
Thanked 289 Times in 168 Posts
Quote:
Originally Posted by carlfryguy View Post
Thanohano... greed tied with no oversight is what started the decline of the industry not what was mentioned in that post. A massive expensive foreclosure mess was created, the banks did not want to pay for it, no one was looking at what the nationals were doing, lots of desperate unemployed people in RE looking to make ends meet, and the internet made it easy for them to find these people for pretty much free. So the nationals fleeced the industry and the banks made them richer than rich to do it, intentional or not.

Between HUDs Audit from 2012 and the OIG's audit from March 2014, it's only a matter of time before someone tells the nationals to crack open their books and show what the contractors are actually getting paid. Assuming they overlook the fact that any national that provides training has misclassified an employee as a contractor. (IMO trained is a red flag that says you are not a vendor, because by definition a vendor is a trained knowledgeable expert, which is why you contact with a vendor). Some nationals are smart and have switched to a 20% discount, which most courts would agree is an fair management fee for a national. The nationals who charge banks $100 for a grass cut and then give the contractor $30 are going to get their you know what handed to them. Since when does a management company retain 70% of the payment. Would you hire a management company to rent your house out for you if they charged you 70% of the monthly payment?) After all, HUD fees (aka government funds) are designed to pay contractors to ensure they perform high quality professional services. I am not a lawyer, but I believe defrauding the government is a federal offense. Read the actual guidelines and not just the matrix, it will be an awakening. The OIG audit is a clear stepping stone to sue for defrauding the federal government. The OIG foudn problems, you can bet your farm that they are digging deeper as we speak with a follow up audit. The OIG is all about preventing fraud and abuse of government funds. Best case, they get a fine. Worse case, a lot of the owners and executives will serve time, get fined, and be stripped of their assets.

Personally, I just want to be compensated fairly (cover contractors increased overhead that has been thrown on us, hire great employees to help with my work orders plus make a profit so I can put a little something away when I retire) and treat me with respect.

The quality problem is a no brainer in this industry. Highest contractor costs tied with lowest fees ever. They knew what was going to happen. Why do you think insurance became a requirement right around the time fees started dropping like a brick? It was not about blurrying the line between contractor and emplyee, it was about protecting their cash from the poor business decisions they all were making.

One of many ways. Thanks for your knowledge.
thanohano44 is offline  
post #9 of 20 (permalink) Old 07-27-2014, 08:05 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
Quote:
Originally Posted by carlfryguy View Post
Thanohano... greed tied with no oversight is what started the decline of the industry A massive expensive foreclosure mess was created, the banks did not want to pay for it, no one was looking at what the nationals were doing, lots of desperate unemployed people in RE looking to make ends meet, and the internet made it easy for them to find these people for pretty much free. So the nationals fleeced the industry and the banks made them richer than rich to do it, intentional or not.

Begging to differ, it was gov oversight that caused such a debacle. Greed wasn't born 20 years ago. Federal entities decided they knew better how to grow an economy, and with just as much a political motive, pressed lenders to hand out money to anyone who could fog a mirror.

After all, HUD fees (aka government funds) are designed to pay contractors to ensure they perform high quality professional services. I am not a lawyer, but I believe defrauding the government is a federal offense.

The original intent may have been, and was long before the floodgate opened and poured in the waves of middleman "asset" companies operating out of suites and PO Boxes. The issue with defrauding the government is proving intent. Greed by itself is not a crime.

The OIG is all about preventing fraud and abuse of government funds. Best case, they get a fine. Worse case, a lot of the owners and executives will serve time, get fined, and be stripped of their assets.

There are uncountable governmental agencies tasked with keeping fraud and waste to a minimum; I cannot name a single one I would consider successful.
How many carpet bagging national/regionals that went belly up owing hundreds of thousands of dollars to the contractor have CEOs and Vice Presidents currently doing time. How many are repaying the monies? Renaming, rebranding is plan A. Selling, liquidating and/or transferring loot is plan B. Bankruptcy is plan C. A little of A,B,C is plan D.
I believe many of the former Buczek contractors would like to hear what the OIG is doing for them, but I don't expect it would currently be very much.


Why do you think insurance became a requirement right around the time fees started dropping like a brick? It was not about blurrying the line between contractor and emplyee, it was about protecting their cash from the poor business decisions they all were making.
Insurance became an issue because of corporate greed. Industry leaders knew this gold rush was finite and created their own end game. Constantly looking to increase revenues, they knew cutting rates would result in a loss of workmanship and an increase in marginal contractors. Industry specific insurance and the ever thickening tangle of hoops they made the bottom rung vendor deal with created the hedge and space they needed to continue to net more while risking less.


What happened smeared the private market and gave weight to those who feel more regulation and oversight is needed to watch over the crooks and thieves we all are. I have no more faith in a heroin dealer's remedy for addiction.

Last edited by GTX63; 07-27-2014 at 08:08 AM.
GTX63 is offline  
post #10 of 20 (permalink) Old 07-27-2014, 09:08 AM
Super Moderator
 
Join Date: Oct 2012
Location: Southeast Wisconsin
Posts: 1,059
Thanks: 890
Thanked 1,208 Times in 536 Posts
Quote:
Originally Posted by GTX63 View Post
What happened smeared the private market and gave weight to those who feel more regulation and oversight is needed to watch over the crooks and thieves we all are. I have no more faith in a heroin dealer's remedy for addiction.
I couldn't agree more. But then again I believe in a free enterprise capitalist market place. Regulation and oversight is not the answer, at least not for me.



BRADSConst 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