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Discussion Starter #1
Hi,
Here to learn and grow. Have been doing the property preservation for about 2 years under a friend's business. Unfortunately they have become flaky and so I decided to try and take matters into my own hands. I have been reading as much info as I can, and have noticed there is a lot of negativity. I am not pursuing this trade for a get rich scheme. Call us crazy but we actually enjoy this sort of work and feel you can make a decent' living from it. Will be looking to see if I can find a willing mentor.;).as I stated above we have been doing the labor-but not use to all the red tape and paper work and bids and such. Thanks ~Molly
 

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Welcome Molly.
Five years ago it wasn't uncommon for contractors to do a half million in revenue from multiple nationals. Even with chargebacks and unpaid invoices, a company could do very, very well. Each and every year since then, rates have declined as the big boys have scrutinized how to squeeze every last nickle out of the industry. Since they receive contracts based on their own bids, the money they get from banks, the gov, etc is pretty well fixed; however, what they pay out isn't. So in the end, it is a pretty simple formula. But in all honesty, it was only a matter of time before this all happened. The best path to staying profitable for the contractor is to cherry pick the preservation opportunities that benefit them the most, and do enough private work so that you can remain in control of your future.
 

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Hi Molly!

Nice to see another woman on the boards, there aren't many from what I've seen! :) We were in a similar situation about last year this time....my husband had been doing the work for another company for a couple of years when they decided to pull out of P&P completely and it left us scrambling to figure out what to do next.

Navigating the red tape and paperwork can be tricky business (that I'm still trying to figure out!) but i'd be glad to help you in any way that I can, though I'm far from an expert. The guys here make a lot of valid points and I've found it helpful to read what they say, though it often is very negative.

Bottom line is that you've got to go into this with your eyes wide open, prepared for the worst, and have a strong backbone. Don't be afraid to decline jobs you aren't comfortable with or aren't able to complete for a profit. Don't be afraid to stand up for yourself and your company when you have to (and you WILL have to at some point).

There is money still to be made if you can play the game, although I will say, like many others here, we are looking at diversifying our services to get more into the private side of things this year. I believe that the P&P business is going downhill and want to be prepared!

Good luck!
 

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All I can say is good luck. You are going to need it.


If you disregarded the "negativity" as just a bunch of sour grapes and didn't pay attention to the message.......... you are really in for a severe rude awakening.

If you can make the bargain dungeon pricing work for you in 2014 I wish your company the best.
 

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Discussion Starter #5
We have been doing the work for 2 years, believe me..I do understand the negativity. And I'm sure some of my post will sound negative as well, as there are many things I could complain about. A lot of the negative things are good to report as learning tools. Plus I'm sure it's nice to have a place to vent where people understand. There is good and bad in every business and every aspect of life. So it's just nice to hear the great things too.
 

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I just joined this site because I have been thinking about PP for a while. Been an owner of a couple rental properties and do just about all the maintenance/repairs. Since I already do this for myself, thinking this would be a natural extension and help focus. I have 46"zero turn, and assorted necessary lawn care equipment, a Kubota B7500 tractor with rear plow, york rake, 3 pt 60" mower, front end loader, chain saws, general construction tools. I know how to set up an LLP, but need advise on setting up this type of work. I would start this up solo, but have a tenant who is an excellent roofer and carpenter who would work for me as a sub. I can sell, and can negotiate contracts, and most of all work hard all day. I hate what I am doing right now and want more control over my finances. I am I crazy?
 

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Welcome Oz. Yes you are crazy. Enough that you could probably avoid prison for any felony based on your above comments.
 

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I saw a Craiglist posting in NJ forum - from United FS. I got a reply from a "Harry Westen" In CA. (I am located in NJ). Anyone know anything about them? they sent the attached link: http://unitedffs.com/vendor-application.html along with a price list. The file was too big to attach, so I listed it. Note there are 3 prices for each service : REO Pricing/Investor Pricing/REO Pricing for State of: NY)

Preservation Type
Securing
REO Pricing
Investor Pricing
REO Pricing for State of: NY
Digital Lock
$110 (Anaconda Lock)
$120 ( Anaconda Lock)
$110 (Anaconda Lock)
Lock Change
$40
$40
$45
Lockbox Installation
$24.50
$24.50
$30
Padlock
$15
$20
$30
Secure Swimming Pool
BID
BID
BID
Sliding Door Secure / Slider Lock
$10
$20
STANDARDPRICING
Boarding
BID
BID
BID
Debris Removal / Trash Out – Per Cubic Yard
$24.50
$30
$30
Automobile Removal
BID
BID
BID
Dry Winterization
$50
$60
$75
Radiant Winterization
$175
BID
$180
Steam Winterization
$85
BID
$105
Replacing Sump Pump
BID
BID
BID
Winterization Re-check
$10
$15
PREAPPROVED
Wet Winterization
$85
BID
$105
Initial Grass Cut –Under 15,000 Square Feet
Up to $63
Up to $80
Up to $80
Initial Grass Cut- 15,000 – 1 Acre
Up to $105
Up to $125
Up to $105
Initial Grass Cut - 1 Acre +
Up to $175
Up to $190
Up to $175
Re-Cut - Under 15,000 Square Feet
Up to $63
Up to $80
Up to $63
Re-Cut - 15,000 – 1 Acre
Up to $105
Up to $125
Up to $105
Re-Cut - 1 Acre +
Up to $175
Up to $190
Up to $175
Trim Shrubs
BID
BID
BID
Snow Removal
BID
BID
BID
Certified Construction Inspections
BID
BID
BID
Pricing varies depending on client and area. A 25% discount is required for all work orders accepted from United F.S.
1. PREAPPROVED: All the Pre-approved items does not require approval. The vendor has to ensure to get supporting pictures to claim payments on pre-approved items as well.
2. STANDARDPRICED: These are the items which the vendor can expect approval. The Vendors needs to create work item and await approval to proceed.
3. BID: The Vendor needs to provide an estimate for this work and await approval to proceed with the work.
 

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1234
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hello molly you wont get any positive feedback here.i personally think there is plenty money in the business.there are naysayers here trying to block people out.if there was not any money in the business.way is anybody here.....LETS START A NEW BLOG:thumbsup:
 

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hello molly you wont get any positive feedback here.i personally think there is plenty money in the business.there are naysayers here trying to block people out.if there was not any money in the business.way is anybody here.....LETS START A NEW BLOG:thumbsup:

Interesting stand based on all your past negativeish postings about companies you've dealt with. :icon_rolleyes:
 

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hello molly you wont get any positive feedback here.i personally think there is plenty money in the business.there are naysayers here trying to block people out.if there was not any money in the business.way is anybody here.....LETS START A NEW BLOG:thumbsup:
?????????? what the hell is that all about?
 

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hello molly you wont get any positive feedback here.i personally think there is plenty money in the business.there are naysayers here trying to block people out.if there was not any money in the business.way is anybody here.....LETS START A NEW BLOG:thumbsup:
I do believe you're not putting it in the right context...I've been doing this for nearly 20 years an makin a fairly good living at it. The negativity you see is from frustrated individuals who have not learned to be a contractor in the dog eat dog world of the foreclosure market. Learn to be smart an stay 2 steps ahead of your clients...Know what they want, and how they want...with experience comes skepticism.
 

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The negativity you see is from frustrated individuals who have not learned to be a contractor (AKA Sheep) in the dog eat dog world of the foreclosure market. Learn to be smart an stay 2 steps ahead of your clients...Know what they want, and how they want... (and do it for free) with experience comes skepticism.

:thumbup:
 

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Molly listen here, if your coming into this business cross your Ts and dot your Is, cause you need a foundation first, I mean company name, contact information, website, Insurance, licenses, HUD specs, equipment, states codes and regulations, help from private workers, experience and skill. They a build of clients in your area, and a good place to build inventory and stock. Now when the jobs come in figure out separation for invoicing, and photos, make sure all your jobs are being QCed by yourself and follow every line of your work orders from your clients. THE BIGGEST THING IS DO THE RIGHT THING! You'll go far if you seperate yourself from others trust me!
 

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Molly listen here, if your coming into this business cross your Ts and dot your Is, cause you need a foundation first, I mean company name, contact information, website, Insurance, licenses, HUD specs, equipment, states codes and regulations, help from private workers, experience and skill. They a build of clients in your area, and a good place to build inventory and stock. Now when the jobs come in figure out separation for invoicing, and photos, make sure all your jobs are being QCed by yourself and follow every line of your work orders from your clients. THE BIGGEST THING IS DO THE RIGHT THING! You'll go far if you seperate yourself from others trust me!
Well I'll be jiggers so that is where I went wrong in the last year and a half. I was making money before but not now and this must be the golden key. Good advice Cherry but your DO THE RIGHT THING! doesn't work anymore when all these companies we receive work from DON'T DO THE RIGHT THING! If you find one that does please share it with all of us!
Please, before you come on this forum dispensing the key to success in this business read some of the wisdom from those of us that crossed our t's and dotted our I's and made great money doing this in the past with half of the hassle. The best advice you can give any newbie looking to get involved in this business is TRUST NO COMPANY AND CYA!!
 

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Good advice Cover2, I agree.

Then again you & I might just be naysayers, after all to quote 1234, "there are naysayers here trying to block people out.if there was not any money in the business.way is anybody here.....LETS START A NEW BLOG"
 

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Yeah cover and what has destroyed this line of work as in property preservation is the REDICULOUS contractors thinking they can scam the system, making this line of work impossible for new members of the work. I always want a little competition in my area, myself and my crews follow the work with close eyes and we never have go backs, get your work done right the first time and save your work order numbers for when QC kicks it back your covered, get paid and go home that is all!
 

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what has destroyed this line of work as in property preservation is the REDICULOUS contractors thinking they can scam the system, making this line of work impossible for new members of the work.
Uh, that's an interesting perspective that I have to repeat to myself out loud.
"Contractors have scammed the system, ie the nationals, and made it impossible for new companies in this industry to get a fair shake."
 

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So yes some nationals are out for themselves, the business model try set in place at one point was to protect the clients from getting destroyed by the contractors. I have had good dealing with some clients even great dealing, doing the right thing I get paid every week, and make enough to have a good living. Trust me do the right thing the right way it'll work out!
 
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