Called by another company - REO Property Preservation Forum
 
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post #1 of 9 (permalink) Old 05-17-2013, 05:49 AM Thread Starter
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Called by another company

I've had 2 different companies call me this season, to mow properties for them. The first one, they wanted me to pay for my own background check, and just didn't seem to be worthwhile...A quick google search of them revealed slow payment issues, and such.
Fast Forward to this week, another company calls me...tells me he's got 2 properties that need mowing, and gives me the square footage, and the price for each property. He asks me if he can send pics, and if I'm interested, give me the addresses. I tell him the prices seem low, especially if they're overgrown. He said, the customer has already paid, but sometimes I can get more for an initial cut.
He also mentioned that I'd need to download an app on my phone, and send pics of properties I worked on, so they could do a "direct deposit" into my account. I told him I could do that, but I'm not jumping through hoops for 27 dollar cuts.

I got the addresses from him, so I could take a look. Meanwhile, he calls back, and tells me his associate has found someone else, but he'd hang onto my name, in case he needed me in the future.

I drove past the 2 properties, the $35.29 EOW (every other week) property looked more like at least a $60 or $70 first cut, maybe $50 EOW after that. I couldn't see the whole place from the road.
The $27 mow was waist high...$70 at least.

They wanted me to visit the prop, beg for more money, mow the lawn, take pics...etc...for low money.

I can see why they didn't have anyone in this area.

Is it possible to make money doing these types of properties? Will they always price them so low, that they're the only ones making a buck?
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post #2 of 9 (permalink) Old 05-17-2013, 07:25 PM
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Is it possible to make money doing these types of properties? Will they always price them so low, that they're the only ones making a buck?
First question, most of the time, the answer is no.

Second question, most of the time yes.

You need to focus on moving up the food chain. Being the sub of a sub will only make you broke. . Google HUD ML2010 -18. That is document where many of the prices orginate from. Study it and refer to it when bidding overallowable properties. Keep in mind, it is almost impossible to get the prices listed in there as the people feeding you the work will take their cut.



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post #3 of 9 (permalink) Old 05-18-2013, 05:41 AM Thread Starter
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Well, my thread over at CT got closed...(I started it, while waiting to get my membership here approved)

Apparently, they don't even want P & P discussions there, at all.

Meanwhile, I've been contacted by a third company!

OK, folks, some of you are making a living off this, it makes me wonder how you're doing it. I guess I'll have to dig in, and do some reading on this site.
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post #4 of 9 (permalink) Old 05-18-2013, 06:32 AM
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Originally Posted by Crawdad View Post
Well, my thread over at CT got closed...(I started it, while waiting to get my membership here approved)

Apparently, they don't even want P & P discussions there, at all.

Meanwhile, I've been contacted by a third company!

OK, folks, some of you are making a living off this, it makes me wonder how you're doing it. I guess I'll have to dig in, and do some reading on this site.


You are right they don't want the words mentioned over there.
Thats why this forum was started.

VERY few of the members there understand the P&P world and when it was tried to explain it to them they still didn't get it.

They keep going back to "regular" contracting and the P&P world just is not that.
Thats not to say that it shouldn't be, but the reality is that it isn't.

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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post #5 of 9 (permalink) Old 05-18-2013, 06:37 AM
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Like Brad said, being a sub of a sub's sub........... is a sure fire way to only work for cheap.

You're lucky you were offered as much money as you were.

We had one low ender on here defending $10 grass cuts. Come to find out they were one of the ones offering
$10 cuts in their market and took offense to the ridicule they got here from legit contractors.
Thats kinda telling that they realized they were taking advantage of folks but still chose to defend their actions.

As for how to make a living in this. DIVERSIFY, DIVERSIFY, DIVERSIFY, DIVERSIFY!!!!!!!!!!
DO NOT keep all your eggs in one basket, have other lines of business income besides P&P.

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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post #6 of 9 (permalink) Old 05-18-2013, 07:46 AM Thread Starter
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You are right they don't want the words mentioned over there.
Thats why this forum was started.
....
They started a separate forum for lawn guys a while back, but it just didn't make it. Hopefully this one will do better.


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Originally Posted by BPWY View Post
...

VERY few of the members there understand the P&P world and when it was tried to explain it to them they still didn't get it.

They keep going back to "regular" contracting and the P&P world just is not that.
Thats not to say that it shouldn't be, but the reality is that it isn't.
Well, to the naysayers, I always say, "Just because you can't do it, doesn't mean it can't be done!"

3 companies called this spring, so far, and a bunch of you are doing it, so someone's found a way to make money at this thing. I can't help but wonder if I can.

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...

As for how to make a living in this. DIVERSIFY, DIVERSIFY, DIVERSIFY, DIVERSIFY!!!!!!!!!!
DO NOT keep all your eggs in one basket, have other lines of business income besides P&P.
That's why I'm here, to learn about another way to get work. I'm definitely leaning towards telling these companies to take a hike...
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post #7 of 9 (permalink) Old 05-18-2013, 08:16 AM
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Well, my thread over at CT got closed...(I started it, while waiting to get my membership here approved)

Apparently, they don't even want P & P discussions there, at all.

Meanwhile, I've been contacted by a third company!

OK, folks, some of you are making a living off this, it makes me wonder how you're doing it. I guess I'll have to dig in, and do some reading on this site.
Some are making a living off it. However, I would say a larger percentage are using P&P work as part of their diversification strategy. Those who are making a living off it have honed their skills, equipment and most importantly CLIENTS to work with their business and geographic location. There are some people who work with Safeguard and others who won't. This is why the question "Who is the best to work for" can not be answered. It is specific to each individual.

I myself own and manage rental properties, I do private party home renovations, a fair percentage of my work load is Freddie Mac and FNMA repair and rehab and if I have time left over, I'll fill the schedule with a little P&P work.

The unfortunate thing is the catch 22. Most of the nationals expect experience, proper insurance, etc. etc. They generally pay the best as there are fewer hands taking a cut. However, how do you get the experience right? Well you may have to suck it up and start with lower paying regional. The one client I have left would have never hired me when I first started in the business.



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post #8 of 9 (permalink) Old 05-18-2013, 08:19 AM
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We used to do the initials for the Preservation nazis. $75 for an initial minus 20% then possibly a no pay for any blue sky reason they could come up with.
Every state/locality we work in, we contact the REO brokers and attempt to start up a relationship. It isn't an overnight thing. We have outlasted A LOT of contractors doing what we do.
When the grass is waist high, adjust your price to what the city would charge before they lien the property. $70 is ridiculous.
$125 is our standard initial lawn service for 15k lots or less.
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post #9 of 9 (permalink) Old 05-18-2013, 09:06 PM
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Originally Posted by Crawdad View Post
I've had 2 different companies call me this season, to mow properties for them. The first one, they wanted me to pay for my own background check, and just didn't seem to be worthwhile...A quick google search of them revealed slow payment issues, and such.
Fast Forward to this week, another company calls me...tells me he's got 2 properties that need mowing, and gives me the square footage, and the price for each property. He asks me if he can send pics, and if I'm interested, give me the addresses. I tell him the prices seem low, especially if they're overgrown. He said, the customer has already paid, but sometimes I can get more for an initial cut.
He also mentioned that I'd need to download an app on my phone, and send pics of properties I worked on, so they could do a "direct deposit" into my account. I told him I could do that, but I'm not jumping through hoops for 27 dollar cuts.

I got the addresses from him, so I could take a look. Meanwhile, he calls back, and tells me his associate has found someone else, but he'd hang onto my name, in case he needed me in the future.

I drove past the 2 properties, the $35.29 EOW (every other week) property looked more like at least a $60 or $70 first cut, maybe $50 EOW after that. I couldn't see the whole place from the road.
The $27 mow was waist high...$70 at least.

They wanted me to visit the prop, beg for more money, mow the lawn, take pics...etc...for low money.

I can see why they didn't have anyone in this area.

Is it possible to make money doing these types of properties? Will they always price them so low, that they're the only ones making a buck?
"Everything is theoretically impossible, until it is done."
- Robert A. Heinlein
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