It appears more and more banks are moving to using the national property preservation companies ie.. Safeguard, Cypress, etc.. What are your feelings about working for these companies as sub contractors?

I think if they open up local branches and charge competitive fees, then it could be a good thing. But if they have a main office in one state and are hiring in sub-contractor in other states, then it is not a good thing. FAS is one that I am not practically happy with. There is no way for these companies to handle their quality control issues because they are in another state. I say pay independant contractors reasonable fee's and they in turn will be accountable. Just a quick thought about that. What does everyone else think?

I've performed services for 2 well-known national asset management companies and been disappointed in both.

They have both overlooked important issues and nagged me to death on minor things. Usually those minor things have to do with work already performed and they've managed to overlook or lose the photos I uploaded.

Plus, I've cleaned up after other national companies and listened to my clients' stories about how the preservation companies and AM's they've worked with aren't reliable.

No, I'm not impressed with what's out there so far and have a plan in place already to partner with reliable vendors in other states to manage subcontractors.

It's a slow process but I already have my California and Arizona operation established and will be moving to Washington in January for the next satellite opening.

Those will be the main 3 but I already have vendors in other states ready to partner with me once I get what I need in the way of national contracts. THEY will be responsible for monitoring the performance of other vendors.

I'm pretty stubborn and have no reason to believe I can't do what I set out to do.

Linda

So how are you generating the bulk of your business if you're not working directly with the Nationals? Are your clients lenders, real estate brokers? Seems like working for a company like Safeguard would mean a steady supply of assignments?

Jeremy

Fox Property Services
www.foxpropertyservices.com

FoxPro. I terminated Safeguard in mid-March of this year and I recently terminated another national asset management company. Both were terminated for non-payment and short payments.

They can give you a steady stream of work but they're only good for the learning experience. If they decide not to pay you, they have plenty of new vendors [victims] to choose from.

That's pretty much all I can and will say at this point.

I have a plan in place that will benefit plenty of other preservation vendors across the nation. But there's a lot of work involved in the planning, marketing, etc. stages so it won't be happening until after the first of the year.

When we're ready, I'll let everyone know what's up.

Linda

From an agent's point of view (just my 2 cents):

I admit, I like that I don't have to handle all the details of getting bids, supervising, paying, and getting reimbursed. BUT, I really don't like the nationwide preservation companies because they don't do a very good job. I would rather deal with all the headaches and get it done right. Grass goes uncut for weeks, what they call 'clean' is laughable (they could at least pick up the clumps of dirt and dog fur on the floor!), and correct me if I'm wrong here, but doesn't winterizing include draining the water heater?

I would much rather have my preservation people handle everything - they actually sweep, mop, and vacuum (and if I don't have the power on, they bring a generator). If the former occupants took the glass globes off the light fixtures so they could take the light bulbs with them, I know my people will replace the light bulbs and put the glass globes back up - not throw them away as trash. If the former occupant's dogs got nasty nose prints and muddy paw prints all over the windows, my people will wipe it off. And when they winterize, they drain the freaking water heater!

My main preservation guy used to work with one of the nationwide companies. They 'fired' him because he didn't want to do bulk work - 50+ jobs per week. Let me tell you, this guy might take 2 days to do a job instead of 1 day, but the properties I have him work on look better, smell better, and sell faster than the ones these nationwide companies work on - he takes a lot of pride in his work, as he should. I shouldn't admit this, but I'm glad they fired him. Now he has more time for my properties!

I have only had a couple experiences with Safeguard properties- and one of them was the craziest trashout and initial yard care I have ever had to deal with. It took them DAYS and TONS of loads to get the garbage out- the place had been vacant for over a year and the vagrants moved in... in any case the guys did a great job, so I guess I was lucky. I thuroughly enjoy not having to deal with anything, just calling a number and telling them "a window is broken" and pretty much leaving it at that. It is the mundane activities of managing these properties that makes me annoyed at the REO business, so cutting down on as much of that as possible is OK with me!

Vendor and sub contractors... what are your thoughts about working for such firms developing under these national firms, which then sub contract the work to you? It's more business to you, that you may have otherwise received, but at the same time your working for less than you would have, if you worked directly under the national firms. Or, are these firms easier to work with... then the national firms. Your thoughts?

Note, I came across this, when I contacted a firm, which received orders from Safeguard, which is servicing three States for Safeguard, sub contracting the work. I contacted Safeguard and the person I talk with, said Safeguard is fine with this and several of their larger vendors are sub contracting. I see opportunities on both sides, myself.

I have mixed feelings about the use of these large companies by my clients and it is easy to explain: though the companies are large and cover multiple states with their services they still get the work done by contractors local to the area; as such they have the same range of quality in the work that we would have by just randomly selecting someone to do the jobs. Those of us that have been in the business a while have developed a list of contractors that we know can be trusted to do good work (and a companion "do not use" list of those that weren't so great). Unfortunately many of the large companies are willing to hire contractors that are not that good because of a low price.

I know several of the contractors in my area that work with Safeguard and Field Asset Services, some of which I will hire directly when it is not a conflict due to my client also using their employer for services.

Certainly avoiding the bid, hire, pay, submit for reimbursement cycle is one I would willingly give up if I was confident the work was being handled properly; unfortunately it isn't always.

I have previously posted about a client having Cyprexx do a trash out when I recommended a personal property eviction. The owner of the contents of the garage called me (my name being on the real estate sign) from a cell 'phone in the cab of the U-haul he had rented to come pick up his (now missing) possessions. Glad I didn't hire that job!

In another case a Field Assets contractor substituted a lock box with a different code than was specified by the client only because he didn't know how to reprogram the code. I fixed it for him and have since taught him how to do it. Somehow I still feel his employer, not me, should have been responsible for any training that was needed!

You hit the nail on the head Mr.FC. I've had experiences with the nationals, probably their subs doing shoddy or incomplete work.

I just met with a Safeguard contractor this morning to deliver a check for $4200 for a trash out completed 2 days ago (like I said earlier, sometimes I hire the good ones directly). In our discussion I was thanked (multiple times) because I pay promptly and stand the time lapse for the reimbursement. I also get the best of service from these contractors because they know there will be no delay in getting paid. In the case of this contractor it was revealed in our discussion that Safeguard is now up to 6 figures, some dating to last year, in unpaid invoicing. Is it any wonder that some of the contractors feel less than commited to quality work? Thankfully this one is always good!

From a contractors view:

Hiring the good ones directly is your best bet. I have quite a few repeat clients that are great to have and a joy to do work for. The best part is that they pay promptly at the time of completion of services rendered! I hate waiting to get paid. In fact, I turn down PP, as well as repair/rehab work from known PITA brokers & GC's that are just sooo slow to pay.

I terminated Safeguard in mid-March for this very reason, along with chargebacks, and bid approvals I received in writing, then were "un" approved once the work order was closed. I never looked back and have no regrets.

I recently terminated another AM for the same reason, except that they are much, much worse and I had to write off quite a bit of money just to get what I got. We're still haggling over the chargebacks that they've given me no notice of or reason for and those date back several months. They just post a little number on your check and show a credit. Absolutely nothing to reference back to. [As a bookkeeper, that kind of stuff drives me nuts.]

I work strictly for brokers and agents now. Some pay quickly, some pay slowly. But at least they pay IN FULL.

I agree that non-payment is probably a very good reason vendors either stop caring or, if they're worth their salt, they move on to someone who does pay.

Linda

How does Safeguard get all the Fannie Mae work in my area? I'm new to this Property Preservation industry. I sold farmland and didn't have to deal with this kind of stuff. What about FHA, VA and HUD? Do these FEDERAL AGENCIES allow Property Preservation companies to bid on their work? I'm a former real estate agent interested in starting my own Property Preservation Business.

Fannie used to have the listing brokers handle the property preservation issues using their own local contractors. Not sure why but the decision to use Safeguard nation wide basis was relatively recent.