Every company you named is a regional which means you are working for pennies on the dollar.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 :/
You are correct with what you posted. But one thing I continue to see year after year is all companies National or other wise keeping dropping there prices and newbies or desperate hacks that try to get over by not completing work accept these low priced orders and feed into this bull ****. Contractors need to be and act as professional and have some pride and stop accepting low priced work. At the end of the day we do the work not the Nationals etc. Stick together and refuse low ball orders. This was a good business and recently has been going down hill. We pay woman comp, liability, have payroll, taxes, accountants and a **** load of equipment. Have to pay rent and on and on. DO NOT ACCEPT LOW BALL WORK. They are all doing itMaybe we should start a stickie on this subject?
Each year many of us veterans get hit with PM's from new guys asking the same questions we have responded to a million times in the open forum. The answers given are not what the poster wants to hear so he just keeps asking.
Here is some logic for you guys that should answer every question about every company because it all boils down to math.
Hud, Fannie Mae, Freddie Mac, VA, FHA, Whoever sets their standard pricing.
The national or servicer should take 20-25% of that.
The regional will then usually split what is left with the BOTG contractor somewhere in the 60/40 range give or take 10-15% depending on the regional.
So for example a 100.00 grass cut
-25% for National
This Leaves $75.00 For the Regional to work with
The regional then takes 40% and gives the contractor 60%
Leaving BOTG making $45.00 on a grass cut.
If you are making only $15.00 or some other absurdly low amount most likely you are the sub of a sub of a sub.
Are there bad companies out there? YES absolutely!
Are there good companies out there? That's debatable because they are all subject to the same pricing and the same QC rules. Each and every company out there will send you back for a missing meter pic or some other such nonsense because these are the rules. Each one of them will call you one day out of the blue and say we now need these additional 5 pics on every property. The Cost Estimator will become more and more standard as time goes by. Until someone takes them to court and wins the cost estimators will be the norm. Regionals will get tired of doing the CE's and soon will pass that cost on to the $15.00 a yard guy.
So many of you guys think we are trying to keep you out of the industry to line our own pockets with all this work. THe truth is we only tell what is going to happen to protect you.
Since the start of this forum and even back in the contractor talk days we have been asked about this company or that only to see a new thread a month or two down the road screaming "they suck they don't pay!" etc. etc. I often wonder to myself is the company or did the contractor not complete the work properly? The rules of this are such that if you don't do EVERYTHING the way the national wants it NOBODY gets paid. So why would a regional pay a guy who half way did a wint or missed pics on a property condition?
If you are new you are going to make mistakes it's just that simple. You were not born with the knowledge of what makes a property in Conveyance Condition.
If you are having trouble finding work the only work you are going to stumble across is work no one else wants. LEARN from that! Ask yourself why they are calling YOU! Every market in the US has experienced contractors. Why would they be offering such a SWEET deal to a new guy with ZERO experience?
If you were going to hire a plumber would you call a school teacher? or a guy with ZERO experience?
In closing USE commons sense people. If you can make that companies price sheet work then give it a go but be careful. The vets around here got in back when things were better they became established and most are diversifying and trying to get out.