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From:
Sent: Wednesday, January 23, 2013 3:42 PM
To: Les Sternberg
Subject: RE: Vendors Needed

Les,

After reviewing your pricing structure we will not be able to work with your company.

We pay our contractors more than you are willing to pay us.

Thank you for considering us and if the pricing changes keep us in mind.





From: Les Sternberg [mailto:[email protected]]
Sent: Wednesday, January 23, 2013 10:07 AM
To: Eric Fritz
Subject: Vendors Needed

January 23, 2013




P.K. Management Group, Inc. is proud to announce that we are the awardee for the HUD FSM 3.6 project and that we are the new, single FSM for the following areas: 4-S [Nevada and Idaho]; 3-A [Illinois]; 4-A [Indiana and Kentucky]; 6-A [Tennessee, Mississippi and Alabama] and 5A [North Carolina and South Carolina]. These contract areas require full Property Preservation and, as needed, Pest Control Inspection and Treatment and other Environmental needs, including Septic inspection and repair and Lead Based Paint Remediation.

For those of you who have been, or are, vendors of Cityside Management Corporation, CooperCitiWest, A2Z Field Services, Innotion Enterprises, AMS, First Preston or Sigma Services, assisting with their needs in their capacities as Field Service Managers, PKMG will be the sole FSM in the areas mentioned above and your experience is invaluable and is an asset PKMG will continue to support, value and nurture in the coming years. You may visit our website at www.pkmg.net for additional forms.

We extend this invitation for you to become a Valued Vendor with the PKMG family. We are excited to consider you and your company as the ramp-up to and roll-out of HUD FSM 3.6 comes to your home State and geographical area. To help us evaluate your skills against our current and imminent needs I am attaching our Independent Contractor Registration Form and Questionnaire for you to complete and return to us by email or fax which will begin Phase One of our internal processes.
Please retain all originals until we advise you that we have moved your company into Phase Two status. At that time we will be sending you additional forms to complete.

If you have any questions regarding the information sent, please call our Vendor Management Department (786) 507-6020 or email us at [email protected]. We are looking forward to working with your company in the near future and having you become a member of our Valued Vendor group.

For some additional information regarding P.K. Management Group, Inc. we can be found at:
go to: Field Service Managers (FSM). You can also find us at our website: www.pkmg.net

Sincerely,
Vendor Management Department, “Your Gateway to a Valued Relationship at PKMG”
 

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Les,

After reviewing your pricing structure we will not be able to work with your company.

We pay our contractors more than you are willing to pay us.

Thank you for considering us and if the pricing changes keep us in mind.

Do you have their Approved Price schedule... the one they won the bid with?
 

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Its pretty obvious that no intelligent life on the other end is reading the incoming emails.
 

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Thanks Doberman for posting this.

I would guess there is about a 99.999% chance that PK and EVERY other national & regional company is reading these posts every day!

How they must squirm when they read about how the people that they NEED to make their company money feel about them! The writing is on the wall, boys!

Have a nice day PK Management, and you too Sentinel, Safeguard, 5 Brothers, MCS, FAS, CoreLogic, LPS, blah, blah, blah. . . . :thumbsup:
 

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I'm not sure they care.

I'm sure they believe there will always be enough craigslist hacks to make them filthy rich.
 

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Anyone ever wonder why PK MGMT has hired a high profile attorney to run their vendor management department???
We told them the same thing....
What I find so ironic is the companies that were "willing" to see if they could make the numbers work are now crying foul or lying about the volume and margins they are making...one guy< Jerry in Indiana, claims to be operating at a 65% margin of profit on routine services for PK.....
 

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They don't squirm. They could have been a leader in the industry thru their vendor networks years ago and they chose today's money over tomorrows. To get a conscious at this stage of the game would require a soul as well.
 

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one guy< Jerry in Indiana, claims to be operating at a 65% margin of profit on routine services for PK

I opperate betwen 30% and 40% and can tell you that PK's pricing would me in the hole btw $50-$100 per project; What is Jerry doing that I am NOT, LOL--shaving hours? Illegal dumping? I recall a drinking game in College--i believe it was call Bu&%sh&t, Jerry I call Bu&%sh$t now drink up
 

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or lying about the volume and margins they are making...one guy< Jerry in Indiana, claims to be operating at a 65% margin of profit on routine services for PK.....




Lying about some thing. There is no way hes making a penny profit and doing the routine services correctly the way its spelled out and the list of things to be done.
 

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Discussion Starter · #12 ·
Thanks Doberman for posting this.

I would guess there is about a 99.999% chance that PK and EVERY other national & regional company is reading these posts every day!

How they must squirm when they read about how the people that they NEED to make their company money feel about them! The writing is on the wall, boys!

Have a nice day PK Management, and you too Sentinel, Safeguard, 5 Brothers, MCS, FAS, CoreLogic, LPS, blah, blah, blah. . . . :thumbsup:

I honestly doubt they care and i do not believe my email will have any impact.

My reason for posting this is I believe the contractors who refuse to work for these outfits the quicker they go away. Craigslist will eventually run out of crackheads and the clients will want better work.

It appears to me tha PK Management looked at our industry and realized that the true business model is the National works for the Bank, the regionals work for the National, and the guy in the truck does the work. They gambled that they could cut out the middlemen and go directly to the guy in the truck. They are paying about what crappy regionals pay so I see what they were thinking and in theory it works on paper.

I don't see a large company being able to QC the guys in the trucks and micro manage them. I personally believe the Regionals need to die and the nationals need to separate every state into Zones. That would stop most of what goes on out there.

Another way to go about this would be for the banks to go to actual property management companies and get proper service from licensed contractors. They are spending the same either way it's just the quality of service they receive is poor currently.
 

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Last time I saw a PKMG price list I had the same reaction, but it's sad that they won out over other companies like A2Z who do have a price list people can work with. I'm sure that PKMG winning the sole FSM award has more to do with the bottom feeder prices and less to do with their quality! I can't imagine that their contractors are out there doing a better job than the A2Z guys.
 

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Regionals are already leaving a wake of Debris in their path,its been proving over and over again Nationals carry the liability and the manage the the trucks on the ground.

This is the model that made the P&P biz work for years..whats changed back in 2008 was volume and foreclosures going to market at a unreasonable rate.Thus Regionals was born,now the market is working it way back to normalcy which is leaving Regionals holding the bag,not being able to pay what the market is needing to get things done.

Taxes,codes compliance,insurance,turn around,cost,liability are all coming back into play and are forcing consolidation.its enviable.

He who has all this will win in the long run.Volume,volume,volume.
 

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Another way to go about this would be for the banks to go to actual property management companies and get proper service from licensed contractors. They are spending the same either way it's just the quality of service they receive is poor currently.
I met a Rep for Fannie May who said they wanted more quality from the vendors in the field.

I told him the problem was not necessarily that vendors were doing poor quality work, but that Fannie Mae was getting the quality that the nationals and regionals paid for.

I told him that I have been told I do good quality work, but I would do amazing quality work if I was being paid what the nationals get.
 

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Here is two of Jerry's posts.....


I have been doing this for 17 years, I have worked for every major FSM in that time. I have grossed 100,000 per year and netted an average of 65,000 per year. I currently have aprox. 120 properties in my Routine Services....avg 9600 per month....anual 115,200. That does dot include Trash outs or Initial Services or winterizations. I service and cover an area of 14 counties here in Indiana....I transistioned over from one FMS to the new FMS as they have changed here...the last change was from HMBI over to PK Mgt....the custom shovelhead in my photo is 24,000 of pure profit from 3 years ago and was built locally if you care to check The Cycle Shop, Marion, In. Anyone can make a decent living in this industry if they can manage a buisness and know the difference between profit and loss. I have also worked for the highest paying companies out there and banks as well, sure there are alot of shortcommings in the pay rates...I do not deny that...but I also know what I do make and profit each year simply by schelduling and smart travel. You do the math...60 properties a week @ 40 ea x 4 x12....

THIS IS IN RESPONSE TO EVERYONE CALLING BS.....

In response to time limits:
Routine Inspections which are a visul inspection conducted twice per month require a vendor to walk thru the property making sure there is no damage. A smart vendor will take 2 photos of each room as he walks through....avg time to walk through a 3 bedroom home and snap 2 photos in passing per room: 10 mins and that is babycrawling!
Routine Cleans: Also a part of the Routine Inspection, are not SALES CLEANS, they are a simple maid service performed to maintain the Initial Sales Clean, requiring simply to wipe down the counters, window sills, toilets and sinks, etc so they are free of dust and to sweep any debris that may have been tracked in by an Inspector, Realtor or potential home buyer. Avg time to complete is 15 mins on a 3 bedroom home.
Lawn Maint: On a 1/4 acre yard with any commericial quality ztr mower is roughly 10 mins. Anyone who tells you it takes longer is BS'ing you.I use a Dixie Chopper because they will cut a fast as they will run, they are designed to mow at full speed and my mower will run aprox 12-15 mph and cut grass at that ame speed. Perhaps you should visit a Dixie Chopper Dealer near you if it takes you 30 mins and a crew of 3-4 men to cut a 1/4 acre yard. Because the fact is I can mow it and weed it the foundation and the fence and 2-4 trees faster than that alone!

Perhaps we sohould all go to Jerry's school of business?????
 

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Aaron ................. you can BS some of the people some of the time.
You cannot BS all of the people all of the time.



And Jerry is a full time BS-er. Only problem is that hes the only one buying into his brand.
 
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PK Management

We told PK Management to take a hike.
$40 BWMs, $360 Initial Services, everything else was low as well.
We are in Indiana and still get PK Work Orders every week for properties in Tennessee, when we don't even do any work for them.
We had a good relationship with A2Z, but they started sending us on no charge QC orders all the time, so we decided to get out of the HUD business.

We are doing way more volume on P&P and much better margins, with less driving and no QCs.

Should have done this a long time ago.
 

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Aaron ................. you can BS some of the people some of the time.
You cannot BS all of the people all of the time.



And Jerry is a full time BS-er. Only problem is that hes the only one buying into his brand.
Ya know the thing is everybody just wanted to know HOW he was doing this and all he did was provide numbers on how 120 RI's every month equaled 9600 bucks...then he came over to the FB group and told them he did 12k in January and it only costs him 4k to complete so he netted 8k...I naturally spoke my peace(told him that if he was operating a business for 17 years at the margins he claimed that Warren Buffet would have hired him as a financial advisor) and then he got blasted from directions I didn't even see coming...not sure if he crawled back into his hole or if he has contact the powers (LS) at PK for response advise.....but he has vanished for the past couple days...
I always find it amusing that when everyone is struggling to make things work for their company that there is one out ther that is doing so well it is unbelievable then when tthey are confronted and being a paid profile they dissapear.....hhhmmmmmmmmmmmmmmmmmmmmm.
 

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Discussion Starter · #20 ·
Ya know the thing is everybody just wanted to know HOW he was doing this and all he did was provide numbers on how 120 RI's every month equaled 9600 bucks...then he came over to the FB group and told them he did 12k in January and it only costs him 4k to complete so he netted 8k...I naturally spoke my peace(told him that if he was operating a business for 17 years at the margins he claimed that Warren Buffet would have hired him as a financial advisor) and then he got blasted from directions I didn't even see coming...not sure if he crawled back into his hole or if he has contact the powers (LS) at PK for response advise.....but he has vanished for the past couple days...
I always find it amusing that when everyone is struggling to make things work for their company that there is one out ther that is doing so well it is unbelievable then when tthey are confronted and being a paid profile they dissapear.....hhhmmmmmmmmmmmmmmmmmmmmm.
The ONLY way this even comes CLOSE to working is if you speed through 10 properties a day and you work out of a pick up truck. I can't pay a contractor to do anything at those prices.
 
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