REO Property Preservation Forum banner

1 - 4 of 4 Posts
A

·
Guest
Joined
·
0 Posts
Discussion Starter #1
Hi,

My husband and his partner started working for a property preservation company a month ago. We can not figure out if we are doing anything wrong or are we missing an opportunity to make money as according to their price sheet by the time we get done with the work it calculates to that we are losing money instead of earning.

For example, they pay $20 for changing the lock. The lock cost about $5. The commuting cost $15. Other little expenses are printing winterization sticks. Long story short, we don't see making money after we done with all the work.

None of their bids we submitted were given any feedback on - approved, disapproved, etc. All of the jobs were for grass cut, rekeying, winerization, small jobs....

So the question is how are others making money by doing the property preservation work, especially when you have to pay for your own GL insurance, gas, expensive equipment and truck?
 
B

·
Guest
Joined
·
0 Posts
Discussion Starter #2
Most of the people doing PP work aren't making money. That's why there is a high turnover rate in the industry.
 
F

·
Guest
Joined
·
0 Posts
Discussion Starter #3
Oh no another thread abt P&P work:shutup:

Go read the threads under HUD and Preservation work and you will gain a lot of insight.

Unfortunately a few years ago there was "good" income to be made in the P&P field but now everyone who thinks they can get into the P&P field and be successful is jumping onto the bandwagon and ..... well to be honest its one business that will give you the opportunity to lose your savings, home and sanity.

The trick is to stay in business longer than your competition...could be a few years but if you outlast them then you can get better contracts.

Example: $20 per lock? You will go broke. $40-$60 a lock you make a few bucks. $100 per winterize? You make a few dollars but you have to figure that every house you touch YOU are responsible for all the damages from freezing and yes you will have freeze damage since you can't get all the water out of those plumbing lines NOR can you guarantee that the next contractor (who wants to put YOU out of business) won't dewinterize the home going out the door so you pay for the damages or the Realtor that turns the water back on and FORGETS to notify the bank that they had a home inspection and they turned the water on......Yep you pay.


1) Basically treat this as a part time "opportunity" for the first couple years to get your feet wet and learn learn learn if you want this for a career.

2) Do not allow any company to be added to your certificate of insurance as an additional insured since then YOUR insurance policy actually can be used by the Service Company to submit all claims to the policy without YOUR permission...even if you did nothing wrong.....

3) Do not do any work for a General Contractor that Subs out to you since that is just 1 additional middleman taking a cut and you making less $. Now some General contractors have been in business for many many years and have good contracts (they paid their dues though) and may not take a big discount and will treat you good but the vast majority rip off the subs.

Now get out there and get rich!!! :laughing:
Good Luck.
 
K

·
Guest
Joined
·
0 Posts
Discussion Starter #4
If something sounds to good to be true, it probly is. Go out and knock on some doors and try to get some good remodeling jobs instead.
 
1 - 4 of 4 Posts
Top