Tuesday, January 5

Property Preservation Business Owner Operators: Evolve or Die...

As some of you may know, our Property Preservation repair business currently does $2+ million worth of Property Preservation repair work each year. Our office/ management work is efficiently taken care of by 1 full time and 2 part time employees and then we outsource 100% of all the actual repair work to our network of subcontractors.

This is not the management system I initially started out with. Like most small construction businesses, I was wearing several hats - hell, when I first started I wore ALL the hats: owner-operator/ accountant/ inspector/ estimator/ contractor/ subcontractor liason/ babysitter/ etc. Many years later, I realize that type of business management where the owner does everything, is a recipe for failure.

Out of necessity and desperation, my business has evolved into something that I never would have expected. To this day, I have not figured out any easier or better way to manage this operation with as much efficiency. And just a quick FYI. My subcontractors get paid more than 90% of their peers within each of their respective businesses.

My philosophy is that business owners ABSOLUTELY MUST pay a person enough so that they can support a family, rent or mortgage, insurance, and recreation. Just to give you an idea, a couple years ago when I was running my own crew, I paid my unskilled helper $22.00 per hour and he was simply an unskilled laborer with an automobile and no tools (well actually he had a cordless drill that I gave him). But he was great at what he did and he ALWAYS showed up.

In fact, ALL of my subcontractors are GREAT at what they do. Here's a little secret. Most people are only moving at 20-30% of their full speed and if you can find a way to motivate them and also pay them quickly, their output will be the same as if you hired 3 regular guys. I'm not kidding, either.

In order to be able to pay people 'above average' wages and fees, you absolutely must know how to estimate repairs correctly. When I first started in the Property Preservation industry 6 years ago, I was asked by the vendor manager of my first client, "what estimating software do you currently use?". I told the person, "I don't use any software". As I look back, I am surprised that they even called me back.

Sunday, November 27

My Automated Solution To a Broken Hiring Process

Just about everyone who has owned a small business has had to deal with hiring other people. One of the most frequently used phrases I'm sure you have heard is that "it is hard finding good help these days". I used to say this quite often until I finally learned that I was using a broken hiring system. What do I mean by a "broken hiring system"?

Friday, November 25

REO and P&P Foreclosure Properties: 2 Different Types of Foreclosures In The Property Preservation Industry

Regardless of how it may appear on the surface, there is an extremely important issue that property preservation company owners need to know about, regarding the terms "REO" and "Property Preservation". These are two completely different categories of foreclosure properties within the property preservation industry. Most national property preservation companies only specialize in either one or the other or they will separate the jobs by using two totally different departments within the same company; i.e. 1 for REO property work orders and the other for the Property Preservation work orders. If you are thinking about starting a property preservation business, you better do your homework and learn about each of these 2 categories of foreclosure properties. Otherwise, you will be quickly introduced to the most aggravating thing in the world,... the Charge-back.

Tuesday, November 15

HUD Chooses New Property Preservation Estimating Software Provider

The Dept of HUD has just adopted a new online property preservation estimating software provider to verify pricing on bids they receive for property preservation, maintenance, and repair costs on all FHA single family homes.

How does this help you?

A property preservation company can benefit in several ways. If you have access to the same database of repair costs used by HUD then you know precisely the highest price you can charge for each individual task included in typical property preservation repair jobs.

A savvy property preservation company will utilize this database to make sure they are maximizing each estimate or bid by charging the highest allowable amount for each repair item. Another benefit to property preservation companies is that by using the same property preservation estimating software as HUD they will have more of their estimates approved.

The property preservation estimating software is a little pricey. But with a little creativity, you could assemble a database of estimating templates that includes every single repair you will typically encounter as a property preservation contractor, like I did.


Friday, October 28

Access Our Free Bank and REO Asset Manager Contact List

One of the easiest parts of running a property preservation business is getting work. Most of the websites out there want people to believe that cold calling REO asset management contacts is the best way to go about attaining new business. Based on our 5+ years experience as a property preservation business and 14+ years experience in other related businesses, we have figured out that is NOT the case. Nonetheless, we decided to give away a free REO asset management contact list so that you do not have to invest any money learning what we already know to be true. Feel free to check out the page where we keep a frequently updated list of the most active National Property Preservation Servicing Companies.

Do Not Be Cheap When Learning How To Start a Foreclosure Services Business

I have met a lot of people who think that they can be cheap when it comes to educating themselves about what it takes to start a foreclosure services company. Even though the property preservation business is booming right now, the only way to succeed is to arm yourself with good quality knowledge about running a business and about the more specific duties that you will be expected to provide. Your ultimate goal should be to speed up your learning process so you can condense decades of knowledge into days. 

Forclosure Clean Up Product Review: Foreclosure Cleanup Network

I really dislike saying anything negative about people. But I have no choice in this case as I really feel the need to warn everyone who might be searching for information about property preservation so that they don't make the mistake of purchasing any of the useless products about property preservation that are currently offered for sale by the Dream Street group.

It is quite evident that H. Paul has never ran a successful property preservation company or as she calls it, a foreclosure clean up business. This is reflected in the content I reviewed within her products about foreclosure clean up as well as her articles about becoming an REO broker. Further evidence can be found in her lack of a return policy and missing contact info on all of her foreclosure business related websites. All website owners know that they must include accurate contact info on their website. And all internet marketers understand that giving customers a money back guarantee is just good business.

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