[Richard Ross]

Hello, I'm Richard. I'm very new into this PP industry. I'm planning to start property preservation business but I'm pretty much confused about it's current market and future opportunity. I have gone through many blogs and youtube videos where people are saying this industry is almost dead and there is no good future. It would be great if experienced people please share some insights. Thank you!

 

[justwontamakealiving]

Industry is struggling with monopolization of the industry sense the boom bust cycle of 08 recession. Back in 10 - 14 Shortly after the boom cycle of the industry safeguard came in under cut everyone and took a bunch of the contracts form local regional and started that hole industrial order complex were used to today. Safeguard refused to pay to the local regionals that were forced to do businesses with them to keep their current contracts. Basically regional were paying out to their contractors for work they did without getting payed from safeguard.

After several years of that, all regionals that had their investments in their PP business to bank roll their contractors taking a percentage cut went out of businesses. My local regional lost their hole lifesaving due to safeguard during this time. Our regional were honest and upfront with me; payed me everything they owed to me and called it quits. They told me years later they lost over $240,000 from safe-guard not paying them for 6 months strait before calling it.

In 2014 - 2022 consolidation with several major players created a environment where the nationals even though most weren't being profitable were able to receive large amount of private inverter money to keep afloat wiping out the rest of the national competition for the few large contracts left. "Race to the bottom of the barrel pricing".

Corona virus and ratification from the pandemic. After the hole corona virus pandemic most were speculating that the pandemic from covid 19 will bring a new 08 boom to foreclosures. Unfortunately everything is so damaged in the industry that the cheapest option is to keep people from foreclosing to begin with. Sense covid nationals have been slashing pricing to try to keep afloat in a attempt show their investors that their in better situation then they really are.

Future prediction. No one knows how to perform the trade; no one does any work to the properties. Properties sit and sit without any clear reasoning; eventually Hud and others take a real look like they did in the past and shuffle around contracts. I think getting in could be a big entry due to the lack of interest, decade lack of appropriate funding to the contractors. I recommend if your starting out to Selling up your services; always bid. Say No to unrealistic expectations and always remember that your the one that sets your prices and always pay your taxes.

Fundamental problem in the industry. Main Problems I see is the barrier to entry to compete with the nationals in a real scale; No mom and pop can fund themselves to compete directly. Properties are all unique nationals treat it as a number game; That's why zillow, and altisource failed when they tried to buy and flip homes. maintaining, fixing, and Flipping homes requreis people that know what their doing. New Homes indestry is soffering with simulare issues, now that we need new homes no one knows how to do it.

 

[mountainvistahomesvc]

I was in this business back in the late 2000s and did really well - so well that I left the business because I didn't have enough workers to help me with the onslaught of work I was receiving. I recently got back into it to find that it appears to be a whole new ballgame. These companies have so many requirements (background checks, insurance, notarized paperwork, buying materials, etc.) just for you to be able to work with them and then they want to nickel and dime you with payment for the work they want. I haven't made that much of an investment yet into this new business, so I'm going to give it a few months to see if it's even worth it.

 

[genie403a]

Hello, I'm Richard. I'm very new into this PP industry. I'm planning to start property preservation business but I'm pretty much confused about it's current market and future opportunity. I have gone through many blogs and youtube videos where people are saying this industry is almost dead and there is no good future. It would be great if experienced people please share some insights. Thank you!

Don’t do it!!!!

 

[Kool-Ayde]

Don’t do it!!!!

That's a pretty strong statement with nothing else said. What makes you say this short phrase? What piece of the puzzle are you not telling? Please help out a novice in the industry...

 

[genie403a]

That's a pretty strong statement with nothing else said. What makes you say this short phrase? What piece of the puzzle are you not telling? Please help out a novice in the industry...

I work for several company always founded a way screwed you out of money that they owed you. Money there are paying you not worth it on work orders asked for price list for services want your company to do . Work for realtor you make more money!!!!!
Good Luck!

 

[northeast1]

Hell NO

 

[philly apple]

Hi All, regarding the P&P of 2022 and 2023, it really went down. the monopoly of the nationals are very bad, it is almost criminal, and those nationals know it and they have new contractors want to get in, and those New ones will do anything for almost for any price Just to get in. But they will find out soon that they are not making money. you can't risk volume with low pricing, because the Risks are HUGE, and companies like safeguard cms guardian ... are abusive and they train their employees to be abusive towards the contractors, they purposely look minor things not to pay, and charge back, or make you go to the property again to take 1 picture that they want. it is very bad. i can not think of 1 good national company that i can recommend. some will start ok or good, but they change quickly on you, so be very careful. look i'll give you an example, i started taking work in the beginning from safeguard (back in 2012), i asked a very simple question, i asked How many contractors are working in my area zone (if you are not familiar with what Zone is, Zone with sg is about 5 - 7 counties, and their turn around time was about 48-72 hours i had to complete those work), and she said 7, Three weeks later i received close to 35 work orders in 1 day and another 20 or so the following day , so i called an told them and said I can't do those in 72 hours And can you give some to the other vendors, and she replied "you are the only one left in that zone". so you have to understand that there is a reason those vendors couldn't last. BTY, their pricing was not that great. so be very careful. The PP industry is being chocked by the Nationals, and it hurts the economy the good vendors, but nationals do not care. i am out of at this point, i'm doing something else, and i'm happy. i wish you all and your families the best, and stay safe an healthy