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Low quality low cost
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Discussion Starter · #42 ·
So how much should they pay you? I ask this question because so many people are posting how they work for XYZ regional, or they will work for a regional but they can't for THOSE prices.

Here is the simple math for the average Newbie.

Let's say the National pays 75.00 for a wint. Low you say? HUD pays 100.00 minus the 25% the National takes and you have 75.00.

Now XYZ regional takes 45% of the 75.00 that leaves BOTG with roughly 41.00 now if the national takes more or the regional takes more the numbers will vary.

Here is the thing many of you seem to want to work for a regional or through someone but you expect to be paid more than would be worth it for them. I agree that working for them doesn't work for you but you still must consider what's in it for them?

I wouldn't process your work, bid all the issues, and accept the liability for less than 40%. Who would?

What I'm trying to show here is mathematically it doesn't work. You will never be happy and you will never make good money. It's not a bridge to get you by until the next big thing comes along. It's a bridge to nowhere.
 

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2+ years exp
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Well, this reply is going to piss some people off, but from my perspective and those who work for Regionals, know it to be 100% true.


Those of us who work for Regionals are your employee's that got tired of watching the You, the Owner, make all that money off of us and now want 1/2 of your cut, and not the measly $10 - $15 you paid us to do all the field work.

Most of you now are saying "what All?". Well, we see your bills paid and new equipment coming in while we work check to check.

Working for the Regionals is Exactly like working for most of you except we get 1/2 the cut. We do not need to label photos. We do not need to bid every single item or get screwed for it later. We do not even have to worry about chargebacks later down the line. 99% of all the aggravation you guys need to worry about we don't. The Regional (You) have those issues, not us.

If you really think about it, YOU are the Regional for your covered areas and those under you are your sub-contractors you are paying to do said jobs. You all complain about the Regionals and YOU ARE THE REGIONALS.
 

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You know, even when I worked for Safeguard, I didn't care if they were getting 60-600-6,000 dollars for a grass cut, or whatever job. It does not matter. If I want what they are getting then I need to do what they are doing to get it....and I don't want to. What right do I have to their money? It became an issue when they thought they had a right to MY money.

At the end of the day all that matters is if you did work for a profitable number.

What is frustrating is the lack of understanding out there between gross and net.
 

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Low quality low cost
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Discussion Starter · #45 ·
Well, this reply is going to piss some people off, but from my perspective and those who work for Regionals, know it to be 100% true.


Those of us who work for Regionals are your employee's that got tired of watching the You, the Owner, make all that money off of us and now want 1/2 of your cut, and not the measly $10 - $15 you paid us to do all the field work.

Most of you now are saying "what All?". Well, we see your bills paid and new equipment coming in while we work check to check.

Working for the Regionals is Exactly like working for most of you except we get 1/2 the cut. We do not need to label photos. We do not need to bid every single item or get screwed for it later. We do not even have to worry about chargebacks later down the line. 99% of all the aggravation you guys need to worry about we don't. The Regional (You) have those issues, not us.

If you really think about it, YOU are the Regional for your covered areas and those under you are your sub-contractors you are paying to do said jobs. You all complain about the Regionals and YOU ARE THE REGIONALS.
In many cases this is true. Look at the math I posted above. If I work for a company that pays low or even marginally then split it with a guy it becomes a very low wage. This is why I have always said HUD pricing is generally ok before 20 hands get in the pie.

Now I have to ask how much do you pay the guys that work for you?

You will notice there is a cycle or an evolution in business. One day you are happy to get the job sweeping the warehouse for minimum wage then one day you are angry you have to answer 20 emails a day for 6 figures. It's all relevant.
 

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2+ years exp
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Well, it all works out for me. I'm a guy that doesn't play well with others, as I have "social" issues. I work alone and do what I can do at my own pace.

I've had 100's of jobs and they all sucked for me till I applied to this one add for a general laborer and learned this business, then after 1 year left him for a regional. Maybe 1 out of every 100 houses I need to actually speak with another human. Most other interactions are texting or emails.
 

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Low quality low cost
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Discussion Starter · #47 ·
Well, it all works out for me. I'm a guy that doesn't play well with others, as I have "social" issues. I work alone and do what I can do at my own pace.

I've had 100's of jobs and they all sucked for me till I applied to this one add for a general laborer and learned this business, then after 1 year left him for a regional. Maybe 1 out of every 100 houses I need to actually speak with another human. Most other interactions are texting or emails.
Good for you man! I can relate. I did preservation work today. There is something nice about not having a client over your shoulder.
 

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The best thing you can do for profit is learn the word NO. Politely tell them NO. Price things where you make money and say no to anything less.:vs_no_no_no:
Got a call last week from a company I hope to get a lot of work from in the future. They just don't have the work load right now. He asked if I could do a couple simple inspections for $15 each. I've never done the inspection thing, how hard can it be? I was driving right by the properties anyway so I said yes. I did the first one but was running behind on my other work. I sent over the pics and forms, he asked when I would have the second inspection done.

I'm not going to do it. Please reassign.
How bout 30 for the inspection?
No, I'm not doing it.
I can go 50 on the inspection but that's it.
No.
50 for trip charge and 50 in the inspection?
NO.
100 trip charge and 50 inspection?
I think we have a deal.:vs_smile:

I said yes and made 15

I said no and made 150

CLH you are correct. NO is a profitable word.

Mmm...maybe I tell my wife no.:wink:
 

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Good luck with that. . .(I'd rather work with SG than try that!)
I do have a problem with Safeguard accepting a job, then declining it without a valid reason. If his whole reason was to get their business, then push them into a higher pay grade through "No'genotiation", then that is bad business for everyone involved.

If he accepted the work, found himself overwhelmed, a proper business man would work with the company to get it done in the fastest manner possible.

Newbies take note... this tactic, if done purposely, will backfire faster than an over-fueled dragster, and will cost you business.
 

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I do have a problem with Safeguard accepting a job, then declining it without a valid reason. If his whole reason was to get their business, then push them into a higher pay grade through "No'genotiation", then that is bad business for everyone involved.
Yep I agree. I was trying to avoid all the details and writing a book on here, but I have left out some vital information.

I received the call from X national when I was on the road and about to drive by the properties. He asked if I could do a couple "simple inspections that needed just a few photos and fill out a quick form and it shouldn't take more than 10-15 minutes." I said email me the work orders.

The email arrived about the same time I arrived at the property. These were not simple inspections. They were ICC inspections. They were requesting 150-200 pics and there were 2 forms to fill out, not just one. There was no way it could have been completed correctly in 10-15 min.
The entire conversation was a lie just to get me there. I wanted to keep my word so I did the first inspection, then realized I don't want to work for this company in the future anyway if this is how they do business. I didn't feel like a spittin match, just wanted to be done with them, so when he asked
about the second inspection, I just said no.

I just found it interesting how the price went from 15 to 150 by saying no. I accepted at 150 trying to recoup losses for the first one. I should have run him up 300! On a side note, the 165 is actually on their "in process for payment" for April. We'll see.....

Will I do business with this company in the future? I don't know.....definitely not doing $15 inspections and not doing ANYTHING for that state rep.
 

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Yep I agree. I was trying to avoid all the details and writing a book on here, but I have left out some vital information.

I received the call from X national when I was on the road and about to drive by the properties. He asked if I could do a couple "simple inspections that needed just a few photos and fill out a quick form and it shouldn't take more than 10-15 minutes." I said email me the work orders.

The email arrived about the same time I arrived at the property. These were not simple inspections. They were ICC inspections. They were requesting 150-200 pics and there were 2 forms to fill out, not just one. There was no way it could have been completed correctly in 10-15 min.
The entire conversation was a lie just to get me there. I wanted to keep my word so I did the first inspection, then realized I don't want to work for this company in the future anyway if this is how they do business. I didn't feel like a spittin match, just wanted to be done with them, so when he asked
about the second inspection, I just said no.

I just found it interesting how the price went from 15 to 150 by saying no. I accepted at 150 trying to recoup losses for the first one. I should have run him up 300! On a side note, the 165 is actually on their "in process for payment" for April. We'll see.....

Will I do business with this company in the future? I don't know.....definitely not doing $15 inspections and not doing ANYTHING for that state rep.

There are always certain nationals who will call you, say what they want to get you to the property just to find out it was a bunch of BS. When that happens I always call from site and make it known that we will get it done, but not at that price. If they cannot meet me on pricing I just wont do it. I have gotten to a point where we do not NEED the extra headaches and 9 out of 10 times the client needs us more than we need them. If they have to lie to get me out to a property they obviously had no one else to do the stuff.

I also hate how you do a favor for them once and they expect you to keep doing it. Again, I just say no now. These nationals get too comfortable and forget we are out there making THEM money while they push papers. :vs_no_no_no:
 

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I'm just not a fan of any National and Regionals don't even make sense to me. As you know there is only so much money that will be paid for a service. When that money is split 2, 3, sometimes even 4 times there isn't anything left for the guy in the field. This is what causes all the poor quality work in the field.
Haven't introduced myself yet but I will when I figure out where that goes. In the process of reading all the info on here, or searching before I ask to see if any questions I come up with are already answered.

Wanted to add to this above. We are new but have seen some horrible examples of work done. Example today at a new property, found green Sprite 2 liter bottle caps placed as hot water heater and hot and cold water caps for washer and dryer. Example of what you get when its split up. I'm not perfect but that's ridiculous.
 

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Low quality low cost
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Discussion Starter · #58 ·
Every day I see new posts asking about some new regional or I receive a private message asking about some company. I have read the site and knownthe information is here so why can no one comprehend?
 

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Just wondering, but we are in Kentucky not the big citys of the U.S.. How do you get your foot in the door in smaller counties, who do you contact to go directly? Who in the banks, real estate agents etc? We have been in this a year, we have Asons, United and ZVN we love them, Others have burnt us like NFS, P.K. Management and one who ole lord thought 12 am text was appropriate on what time we are starting the next morning but as you said its a learning process. We are a construction company as well traveled from Kentucky to PA for a Carrington House job so not afraid of the travel or work. We just know clean outs and repairs is where the money is and the rest we figured was the have to do to get the repair jobs. Just dont know who to talk to to go directly at banks etc we can hardly get past the receptionist :/ Wells Fargo I have tried them but they seems confused when I ask them about being a vendor lord I have done several of their houses already just thro a percentage sucking company :/
 
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