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.

In my experinece, anything FEDERAL, requires that everybody (the public) has an opportunity to bid on their work. Anybody know for sure?

Not "everybody", you still have to qualified to perform the work.

Yes, I agree on the issue of being qualified, more specifically, how does one learn of federal (VA, HUD, FHA, Fannie and Freddie)bidding opportunities?

pbaker_8@msn.com

How does Safeguard handle hazardous materials? We have an REO listing that has some large paint containers and the Safeguard contractor was not allowed to remove them. Safeguard must have special contractors to handle hazardous materials. Can anyone update me on these contractors and the payment for such work?

Douglas ~

Is this a new policy Safeguard has? When I worked for them, the instructions were always to remove everything during a trashout, including hazards.

That could explain why we're coming across properties during grass cut season that have been cleaned & winterized but have hazards still in the garage. In most cases, these properties were transferred from one asset management company to another. I wonder if that was also the reason for the transfer? Interesting.

In doing "Prepare to Convey" work orders, the household hazardous wastes were always the first items to be removed. During a routine trashout, it was always the last thing. But it was always done.

Linda

Some localities may have special requirements or permits that are required for handling hazardous waste. If the Safeguard contractor doesn't have these then they can't complete that phase of the task. Safeguard needs to make sure their contractors are fully qualified for whatever they might run into in the area where they work. If they don't have a qualified contractor in that area then they may have to bring one in from somewhere else. Unfortunately I have not seen a uniform definition of what constitutes "hazardous waste".

Mr. Foreclosure ~

This HHW list is from LA County but it's pretty standard from what I've seen.

Some examples of what you CAN bring to a HHW collection:

Motor oil, oil filters, brake fluid
Used antifreeze
Paint, paint thinner, turpentine
Cleaners with acid or lye
Pesticides or herbicides
Household batteries or car batteries
Pool chemicals
CRT's, old TV's, misc. electronics
Mercury thermometers or thermostats
Used Needles or Sharps (In a Sharps container or sturdy box labeled "SHARPS")
Unwanted or expired prescriptions (MORE INFO)

What you CANNOT bring to a HHW collection:

Explosives
Ammunition
Radioactive Materials
Trash
Tires
Business Waste
White Goods (stoves, fridges, etc.)
Controlled Substances



How should you prepare?

Bring the items you wish to dispose of in a sturdy box preferably in their original, labeled containers. Do not EVER mix products together. It is ILLEGAL to transport more than 15 gallons or 125 pounds of hazardous waste in your personal vehicle. Be prepared to leave your containers. Because of permitting requirements, and the volume of people that utilize the program, items such as gasoline cans WILL NOT be returned.

We handle household hazardous waste all the time and cleanup up minor oil spills. We do NOT handle any toxic waste, explosives, radiological waste, or biological waste and don't do any type of meth lab cleanup.

An EPA permit is required for transportation of certain waste products and disposal of higher volumes than those allowed by current, normal guidelines.

I'm sure other states have their own variation of what constitutes household hazardous waste but maybe this little bit here will help.

Linda

That is a good list Linda (for LA county, CA). I presently work in 8 counties of upstate NY and they can't even agree on what is considered recyclable let alone hazardous!

In at least one of those counties it appears "who" is handling the material seems to be more important than "what" is handled. An example I will offer is asbestos (old siding, steam pipe insulation, floor tiles, etc.) which a private home owner can send out with regular garbage in a plastic bag but a contractor has to comply with much more restrictive packaging and labeling of the contents.

Thanks Linda for the list. We will be checking with our local counties, for requirements, and then consulting with Safeguard.

Well here in Georgia, we(agents/broker) have been told we have perfor the re-key and occupancy check. Then Safeguard will complete the property preservation. On Fannie Mae properties, I had no problem with the properties been clean. But for my Goodman Dean properties, it was terrible. They wouldn't cut the grass. When my vendor was cutting the grass, the HOA never called.

I agree completely. I too have worked with nationals and no matter how accurate and timely I submit work orders, I seem to get calls and emails on silly things and they lose photos that I upload. Then threaten non payment if I dont send them in ASAP.

I cover alot of Northwest Georgia and a small portion of Tennessee. I would love to expand, but I have felt bogged down at times with followup from work on previous jobs. I have considered purcasing the East Point software to stream line orders so that I can focus on hiring/training more crews. It is amazing to me that the processors/QC at the same national companies can ask for different things on the same type of work order. Very frustrating. I am very proud to see that you are determined!

Don't talk to me about the major preservation properties! Had two properties closed this past month, one by each of the major firms. Both had frozen pipes, despite Oct dates that they were supposedly winterize.
I much rather have the local individuals, that I know & trust do the work.
And if you think of it, the preservation companies work for money & so do their sub contractors; therefore there certainly isn't a cost savings!
Some sub-contractors are good & others are horrid!

Major preservation companies are what I call smash and grab. They will beat you up for every little undotted i or uncrossed t. In response to GUZZIE's post I ran into the same problem with the Goodman Dean properties in my area. Now my local agents is asking me to go in and remove a vehicle that was left behind and do a sales clean on two properties as a favor. Use Local companies develop a good relationship and things get done better. We are 7 for 7 on our last houses, all 7 within five days of completion have received near full cash price offers. That's the difference between Locals and Nationals. One of my local brokers is doing all he can to remove Safe Guard from this area.

I think his problem is that they do not want to pay what it actually Work Related, and when they make an offer to you, they make it much under budget, in this case your vendor do not work quite well.

Mr. Foreclosure,
I am attempting to sign on with Cyprexx in Tampa Fl. As you are probably aware, it was quite a chore just to fine out about them, and a nightmare trying to get in. I have been in real estate since I was just 12 (working and watching my father) in rental properties. I have done everything from cleaning up, to maintainance, and graduated to management. I have been buying foreclosures for the past 2 years, but have backed off with the receny instability in my area. I desperately want in on this aspect, but am finding many roadblocks and frightening stories. To be right to the point, I am wondering if you may be willing to help. You see, I like getting my hands dirty, I really dont like desk work. I dont know where in upstate N.Y. you are. I myself am from Poestenkill N.Y. (near Troy). I have alot of family in the area. My questions are these. Would you give me some advice, would you be willing to consider meeting me in regards to working for you as a vendor, (yes, I'm that serious to relocate), I would be willing to prove my sincerity. I am financially stable with our rentals and my own remodeling company, but I want to expand and as I said, I like physical work. I have equipment, trucks, trailers, and manpower at standby. My knowledge of property maint. and repair is outstanding, and my attention to detail is unreal. This is probably the strangest request you have had, but I am 100% serious. Thats how bad I want to get in. I have read your posts, and find you to be both professional and serious. If you would be so kind as to respond, I would really appreciate the opportunity to at least get some advice if nothing else. I attempted to send a pm on here, but it was "overlimit". I dont want to post personal contact in public view. Thank you in advance,
Randy S.

ranschroeder, Mr. Foreclosure hasn't posted since July of last year. You might be waiting awhile for a response.

Linda

Mr Foreclosure retired at the end of last year. I heard from him recently.

Good for him. I know his wife was having health problems. I hope they are both doing well.

Thanks for the update!

Linda

If anyone is looking for a honest, efficient, amd quality minded Vendor look no further. We are in the Houston Texas areas and have been in bussines for 6 years.

Hello Everyone,
I have just incorporated and have no experience at all with this type of business, with that said I have read a very good handbook with the FHA,VA,REO,Hud and PPO guide lines and I am aware of the specs and i am attempting to put together 2 crews My Fiance' is a very good handyman and all I can say is how can anybody get hired if you are just starting out and everyone requires at least 1 year experience I know that given the opportunity to prove ourselves we can can excel with any company that would hire us, also i needed to know do you require a contractor license in the state of Florida and the correct me if i am wrong EAP OR EEP license? I am obviosly a novice but i have a great group of people and we are willing to work and create a great and respectfull reputation. And I might interject all the postings thus far have been very insightfull and I can tell that i am going to be learning from Seasoned PP Owner's.

Hello everyone, my team and I have formed our own company here is San Antonio, TX and are very interested in becoming a vendor or possibly a sub-contractor for this area and surrounding areas(counties). If anyone knows of a company that may provide us with a nice steady workload 5-6 days a week, please PM me or reply. We have worked in property preservation for a little over a year now and understand the guidelines we need to adhere to thus acquiring experience in various skills. We carry a business license, all the necessary equipment and insurances required to move forward. Thank you so much.