What steps are you taking to keep your business strong? - REO Property Preservation Forum
 
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post #1 of 7 (permalink) Old 04-19-2016, 11:21 AM Thread Starter
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What steps are you taking to keep your business strong?



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"According to CoreLogic's recently released February 2016 National Foreclosure Report, U.S. national foreclosure inventory declined by 23.9 percent and completed foreclosures declined by 10 percent compared with February 2015. The number of completed foreclosures nationwide decreased year over year from 38,000 in February 2015 to 34,000 in February 2016. The number of completed foreclosures in February 2016 was down 71.3 percent from the peak of 117,776 in September 2010" U.S. Foreclosure Inventory Down 23.9 Percent Annually
With U.S. foreclosure inventory continuing to fall, what steps have you taken to help keep your business strong?
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post #2 of 7 (permalink) Old 04-19-2016, 12:07 PM
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Depends on where you are located. Like the old saying about the weather in some areas, if you don't like it, wait a few minutes and it will change.

March number are up nationwide and are only down about 6% from 2015
In PA bank owned properties are up 14% from last year.

Make new contacts with direct work whenever you are slow, that's how you keep your business strong.

Of course I am apparently talking about the magical unicorn who farts out rainbows since most people on here swear up, down and sideways that the ONLY possible work in this industry is working for a national or regional.
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post #3 of 7 (permalink) Old 04-19-2016, 06:37 PM
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Big Daddy a serious question for you. I see your response here and the Newbie thread you started, and I agree with you that middle men and Nationals will take take take, and you have to chase your pay. My question is how do you combat the hesitancy to change that the banks or whoever you go to for direct work have? I have several good relationships with various property management companies, banks etc. And I have a great work portfolio, history, pictures, recommendations and so on. I generally hear "well Stan has been doing our properties for years.." Or they just go with low bidders as an example $180 a month to maintain an Office Depot property 20 dollar lawn cuts on 10-15k sq.ft properties etc..who does that? how do they live on that? Anyways I tend to agree with you, but it is all a bit frustrating. Thanks!!
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post #4 of 7 (permalink) Old 04-19-2016, 06:54 PM
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Originally Posted by Fantasticfordme View Post
Big Daddy a serious question for you. I see your response here and the Newbie thread you started, and I agree with you that middle men and Nationals will take take take, and you have to chase your pay. My question is how do you combat the hesitancy to change that the banks or whoever you go to for direct work have? I have several good relationships with various property management companies, banks etc. And I have a great work portfolio, history, pictures, recommendations and so on. I generally hear "well Stan has been doing our properties for years.." Or they just go with low bidders as an example $180 a month to maintain an Office Depot property 20 dollar lawn cuts on 10-15k sq.ft properties etc..who does that? how do they live on that? Anyways I tend to agree with you, but it is all a bit frustrating. Thanks!!
First of all, a property management company is a middleman.
As far as them telling you they have someone else, I have explained this numerous times. When you have a good paying client and you do an outstanding job every time, there is no reason for them to look elsewhere and no reason for you to quit them.
Once a good relationship is built it can go on faithfully for decades.
I think that's what confuses allot of people here, they inquire about getting work and are told they don't have a need for them, others will straight up lie and say they use national companies just so they don't have to deal with 100's of people hounding them for work when they have a great contractor already.
I have been around for a long time, and the fact that I am a general contractor who can handle ANY job and get it done on time, on budget and with professional results means they call me first.
I wasn't always the main guy, I told people to use me for 2nd bids if they already had someone else. Once you get your foot into any door, do the best job you can possibly do and your work will speak for itself. This business is like any other contracting business.
There are always fresh REO agents popping up everyday. Today's newbie agent might be next years top broker!
Others are crying about not having enough houses because they are in a smaller market, nothing you can really do about that.
I can say however, it doesn't take allot of direct work to make money.
Why cut 100 lawns for $15 when you can cut when you can cut 10 for $150 each??
Why do 100 winterizations for $65 when you can charge $375 and make more money doing 18?
I live in a great area a far as volume goes but I'm not the only game in town either. There are at least 10 guys like me in my area that I know of. Sometimes we compete for the same jobs, but we mostly deal with different clients and all make money.
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post #5 of 7 (permalink) Old 04-19-2016, 09:04 PM
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I met with an investor today and he asked me "where are you trying to get growth wise?"

I said "I would like to lose a couple of clients and let a few contractors go before next winter"

He didn't get it!
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post #6 of 7 (permalink) Old 04-19-2016, 10:35 PM
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I am a property management company but I am also hands on. We work for ourselves with number out companies, commercial contracts, residential and we also service some housing complexes. There is good money out there you just have to find it. It's not going to fall in your lap.


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post #7 of 7 (permalink) Old 04-20-2016, 12:01 AM
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I believe in diversification, and weeding the business. We do REO work (Mostly local/direct/ contacts), and process service. We regularly sit down and discuss how each client is working out, and if there are any changes that need to be made as far as dropping them, or adding new ones. We also have 2 guys who do Hotel Readerboard Services. One part of the business can take a hit, and we will still be afloat. Every team member is also cross-trained in each facet of the business, so when vacations or sick time comes in to play, we can have it all covered.

I'm sure that most of the veterans on here will talk about the networking, finding the direct contact, pavement pounding, and persistence - and that is great business advice. I took the unconventional side-step and made sure that one part would not derail my business. I grafted branches to my main tree and now have a multi-fruit tree at my disposal, so I always have fruit to get paid from. This is not typical of most businesses in this industry, but it worked for me.
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