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#317614 - 12/12/09 08:01 PM Low Margins? Hidden Profits? Secret Rates?
real agent Offline
Member

Registered: 03/25/07
Posts: 223
Loc: North America
I seen some standard fee by hud for pp vendors and it seems quite low for time/effort vs compensation.
I may be 100% wrong but it seems like it would be hard to make a large return or profit in this line of work.
My hats off to whoever does make it work.

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#317658 - 12/13/09 10:24 AM Re: Low Margins? Hidden Profits? Secret Rates? [Re: real agent]
allREOpreserv Offline
Veteran Member

Registered: 09/08/07
Posts: 704
Loc: Nationwide
It all depends on the client as to how much [or how little] profit is in each job. We use HUD pricing but adjust it upwards when there is a lot of work to be done.

Our pricing is more than reasonable and we discount for high volumes of debris removal but there are companies out there who have no insurance, don't pay taxes, and hire ultra-cheap labor for cash that are undercutting the rest of us who run an above-board business.

So this means it can be tough getting the jobs that would be more profitable. It's not fair but it's life and we work with it. We just do the best we can to keep our clients coming back for more. smile

BTW ~ thank you for recognizing the efforts of the PP vendors. There are a lot of them out there doing a great job.

Linda

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#327372 - 02/18/10 06:11 AM Re: Low Margins? Hidden Profits? Secret Rates? [Re: allREOpreserv]
Hammer&cross Offline
Junior Member

Registered: 01/19/10
Posts: 9
Loc: se
HUD, M&M contractors are a great way to start out as a new vendor/contractor to learn the ropes. You need to learn it quick and then run from them as soon as you can. Real agent is correct M&M's are high maintenance low impact clients. Examples, I recieved a call one day to drive 15 miles pick up a dead chicken at a property...$5.00 another one was to go to a house 20 miles that had been winterized to clean out a toilet someone used (#2) for $10.00. I got to the point I did not except any special service orders under $30.00. Today I work strictly for REO agents and only two Nationals.

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#327634 - 02/19/10 04:56 PM Re: Low Margins? Hidden Profits? Secret Rates? [Re: Hammer&cross]
metroman Offline
Junior Member

Registered: 12/04/08
Posts: 9
Loc: OK
When I first started I worked for HUD's M&M. The first job wasn't too bad but the second one was horrible. The things they wanted me to do for 15.00 was crazy. I started rethinking and about that time they sent me three jobs with winterizations that paid 18.00 each. If someone wants to do a winterization for 18.00 they can. But after E&O, GL, auto insurance, worker's comp insurance, gas etc. there is no way to make a profit. Like someone else said, there are a lot of people getting into this business that don't carry all the insurance etc and it is making it hard to compete with them. I found out real quick to get away from the National's and go direct. I may not do as many jobs but it all comes out in the end. I am not going to clean out a #2 in the toilet for 10.00!

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#327668 - 02/19/10 07:05 PM Re: Low Margins? Hidden Profits? Secret Rates? [Re: metroman]
Hammer&cross Offline
Junior Member

Registered: 01/19/10
Posts: 9
Loc: se
Well metroman I know who your M&M contractors is for OK and they are the same one I fired. It got to the point that I would turn down any job that did not make me any money, thinking that if everyone did that maybe the would increase the inital order compensation. Nope, they still are able to find people to abuse.
As far as Nationals are concerned it is hit or miss when it comes to coordators some are really good (communication) while others just plain do not care. We just hang tough, provide results and expect to be compensated fairly.

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