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:help: Hi everyone... I'm Shane, and I am also pretty damn green. I have no problem admitting that, and I don't mind getting advice either! Lol...Anyway, I've got my business licence, in Wa. for prop pres, and am REALLY trying to go %100 legal in this venture, but I'm not sure if its mis-, dis-, or missed information I'm running into the most. :confused:
1st) Insurance... General liability, or liability AND errors and omissions insurance? And after that is a bond also necessary? And if so what kind? I did rush after my licence, but have since postponed my actual 'launch' date til those concerns are met
2nd) I've been reading an awful about charge backs, reaching the couple thousand dollar mark at the low side...From what? Missed repairs that the Banks or property owners then pay some one else to repair or faulty repairs done by the company getting the charge back? A very green or newby question, I'm sure, but a concern non the less.
3rd) Is it a good idea to stock up on any specific supplies prior to having any assignments? Like antifreeze, ect?
4th) This one is critical, when you get assigned a work order, and its your job to do...Do all the repairs then come out of pocket until you invoice or is there an initial payment sent out to cover expenses? This one is a must know because I am starting from pretty much zero, so capital is hard to come by.
Thanks anyone with the patience and time to answer. It will be greatly appreciated. I'm getting really nervous about my chances of launching at this point. I have potential clients/customers already, but I'm not sure I can afford to start for another month or so. :(
And as an after thought, is there any where to look for small funding to get off the ground like from a bank if you agree to work for them? That may make everyone laugh more than the rest of my q's but I'm willing to try what ever right now. I really need, and want this to work, I don't want to just try...
 

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Did you remember to get EIN number from the feds, State employer number if state requires that.

You don't need a bond, maybe by some clients but most don't require it.

If you do your job correctlly you don't get chargebacks, they can be small 50 buck to 50 thousand. You get chargebacks for making a mistake, missing roof leaks, not reporting fire damage, missing structual damaged, previous owners of the property suing you for removing property.

The only think I would stock up and a very small amount is locks and padlocks, everything else can be purchased at any hardware or big boxed store. I would only get maybe 5 of the popular combos.

Most clients you don't recieve draws only on very large orders say over 10k. Most of the nationals have payments terms of 30-90 days so you have to have some start up money to pay this game just like any business.

If I was you I wouldn't get into this business. In my opionion its to late to start you missed the boat. 2 years ago is when the volume was the highest now its going down hill. I think we have about 2 more good years and then this will be a side business and not a full time job.

If you want to make some fast easy money go start a painting company, you get paid right away and the start up costs are super cheap just some ladders, sprayers, brushes and some white paints:thumbsup:
 

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Did you remember to get EIN number from the feds, State employer number if state requires that.

You don't need a bond, maybe by some clients but most don't require it.

If you do your job correctlly you don't get chargebacks, they can be small 50 buck to 50 thousand. You get chargebacks for making a mistake, missing roof leaks, not reporting fire damage, missing structual damaged, previous owners of the property suing you for removing property.

The only think I would stock up and a very small amount is locks and padlocks, everything else can be purchased at any hardware or big boxed store. I would only get maybe 5 of the popular combos.

Most clients you don't recieve draws only on very large orders say over 10k. Most of the nationals have payments terms of 30-90 days so you have to have some start up money to pay this game just like any business.

If I was you I wouldn't get into this business. In my opionion its to late to start you missed the boat. 2 years ago is when the volume was the highest now its going down hill. I think we have about 2 more good years and then this will be a side business and not a full time job.

If you want to make some fast easy money go start a painting company, you get paid right away and the start up costs are super cheap just some ladders, sprayers, brushes and some white paints:thumbsup:
I agree with most of the above, except the chargeback part. If you do your job correctly you will have "LESS" chargebacks. They will not go away. The most famous one I deal with is, 60-90 days down the road, some cubicle jockey says "your photos don't justify the yardage on the trashout". Then you hear crap like, "well, if you can get more pictures, we'll look at it again." Really? the chit was dumped or recycled months ago!

You need working capital. Its not hard to run accounts receiveable very quickly. Try getting a $7k bid approval to replace a roof and have to tell your roofer you'll pay him in 90 days! Try telling your landfill you'll pay them in 90 days. It doesn't work for me, and I am my own roofer!

Another thing is buy when stuff is on sale, not necessarily when you need it. For example, if your client requires smokes and COs installed on an initial, buy them when they are one sale and keep them on hand. This time of year, I pick up cases of antifreeze when they are on sale as well.
 

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Im new too,,, I'm trying to study everyday on property preservation, i haven't got my foot in the door yet in which I'm working on,i worked the administrative part for another property pres business a year ago.. as soon as i get my business license from my state, and general liability insurance would i need more than that ( more paperwork) to sign up for a national? I understand that i may have to get E and O insurance but i heard that i can probably wait on that for now. Is it possible to start with the business license and only general liability insurance? Per say, i can use this for cooking starting off with doing locks, lawns, winterizations, cleaning, right?
 

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Im new too,,, I'm trying to study everyday on property preservation, i haven't got my foot in the door yet in which I'm working on,i worked the administrative part for another property pres business a year ago.. as soon as i get my business license from my state, and general liability insurance would i need more than that ( more paperwork) to sign up for a national? I understand that i may have to get E and O insurance but i heard that i can probably wait on that for now. Is it possible to start with the business license and only general liability insurance? Per say, i can use this for cooking starting off with doing locks, lawns, winterizations, cleaning, right?
I have a state GC license and a general liability policy. I don't have any clients that require EO insurance. Quite frankly, I think its a racket expecially when someone like SG tells you who you must buy the insurance from. I also don't believe that they need to be listed as "additionally insured". If you want me to get EO insurance, I will send you a "for proof" copy only. They aren't going to file a claim behind my back, especially if "they" sent someone else to fix something that was supposedly my fault. I won't end up poor and on the street for SG or any other national for that matter.

Years ago I started doing lawns, locks and refreshes. That won't last for long because you will be expected to bid and do everything, or have a qualified sub that can. Good luck getting a electrician, plumber, or any other skilled or licensed trade for what they will pay.
 

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........... starting off with doing locks, lawns, winterizations, cleaning, right?




Few companies will let you go this route.

Some will do the grass/snow removal only route but the pay on that is so damn cheap that I don't see how even the weekender beer money guys can hold it together.


Honestly new guys............. I cannot recommend getting into this business right now.
Certainly not as an expected full time gig. The industry is not what it used to be and you'll find that many of the guys on this forum ARE NO longer doing P&P full time.
You just can't make a legit business work with the money that is paid now days.
Then you've got the illegal and fraudulent activities that go on.
You'll be asked, even demanded to do work that is no where close to code.
For example............ bleach and kilz mold........... do the new guys even remotely think this is an acceptable way to deal with mold???????
If you answer yes............. you'll are guaranteed to be getting a charge back at some point.


If you have another business already operating and are looking for some filler work...... thats about all that P&P can be counted on for.
The contracts that you will sign are 100% to protect the company you are working for and 0% to protect you. No changes are allowed to be made and they will not sign one that you send them.
 

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Welcome Shane.Chargebacks in this industry are what theft and losses are to the retail industry. It is a fact of life. The difference with this business is that you cannot factor that into your costs, they are mostly fixed for you by the clients.If you are determined to make it in REO/Preservation, then more power to you. As this biz climate is evolving, we will need some folks on this forum who are experienced and knowledgeable in the $30 winterization, the $15 mow, the $100 roof tarp, and how to bleach moldy walls.
 

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hi

Welcome Shane.Chargebacks in this industry are what theft and losses are to the retail industry. It is a fact of life. The difference with this business is that you cannot factor that into your costs, they are mostly fixed for you by the clients.If you are determined to make it in REO/Preservation, then more power to you. As this biz climate is evolving, we will need some folks on this forum who are experienced and knowledgeable in the $30 winterization, the $15 mow, the $100 roof tarp, and how to bleach moldy walls.

at those prices would rather work at mcds at not worry about chargebacks if i screwed up a quarter pounder:thumbup:
 
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