# My Rant about so many regionals



## brm1109 (Sep 17, 2012)

I am really getting pi**ed off with how many regionals are opening their doors. Wow you have a business and now think you can be a regional. Well guess what if you are subbing from someone else and then taking another cut how is anyone supposed to make any money actually doing the work. 
If you want to expand your company, how about going out, hiring people and doing the field work. It seems that all anybody wants to do anymore is sit behind a desk and make money to flip paperwork. 
Again I believe in everybody trying to achieve the American dream, BUT at what point does it get stupid. If you are a true national and get the work directly from the bank than fine but don't try to sub work that you are getting as a sub yourself. If you can't handle the work load then don't say you can cover the area but then try to get it done on the cheap by somebody 3rd down on the list.
Yes I have hired some people to do work for me that we couldn't cover. Was it subbing, yes but it was also in my own area not across the country. But I did it more to just satisfy a client. Was it worth it, not really after I got the 100.00 wint from the national minus their 20% I clear $80.00. Did I offer the obscene price of $40.00 for someone else to do it NO NO NO they got $70.00. Yes did I make $10.00 for flipping paperwork on it, sure $10.00 I didn't make 1/2 for nothing.
I guess all I am saying is if you want to sub, pay the right rate. Sorry for the rant.


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## JDRM (Apr 16, 2012)

Basement Regionals........ Hate em!!!! They are a waste of time!


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## PropPresPro (Apr 12, 2012)

brm1109 said:


> I am really getting pi**ed off with how many regionals are opening their doors. Wow you have a business and now think you can be a regional. Well guess what if you are subbing from someone else and then taking another cut how is anyone supposed to make any money actually doing the work.
> If you want to expand your company, how about going out, hiring people and doing the field work. It seems that all anybody wants to do anymore is sit behind a desk and make money to flip paperwork.
> Again I believe in everybody trying to achieve the American dream, BUT at what point does it get stupid. If you are a true national and get the work directly from the bank than fine but don't try to sub work that you are getting as a sub yourself. If you can't handle the work load then don't say you can cover the area but then try to get it done on the cheap by somebody 3rd down on the list.
> Yes I have hired some people to do work for me that we couldn't cover. Was it subbing, yes but it was also in my own area not across the country. But I did it more to just satisfy a client. Was it worth it, not really after I got the 100.00 wint from the national minus their 20% I clear $80.00. Did I offer the obscene price of $40.00 for someone else to do it NO NO NO they got $70.00. Yes did I make $10.00 for flipping paperwork on it, sure $10.00 I didn't make 1/2 for nothing.
> I guess all I am saying is if you want to sub, pay the right rate. Sorry for the rant.


Lol! Do you feel better now?


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## brm1109 (Sep 17, 2012)

Actually ya I do feel better!!!!


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## Splinterpicker (Apr 18, 2012)

It is a life cycle of any business Beginning , Growth , Maturity, Decline. It does not matter what business they all go through this. Can't blame a person for trying but when it is more of a head ache then it is not worth it. We are skilled trades people and will survive. When bloated promises are made I look back and laugh.


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## STARBABY (Apr 12, 2012)

Only regoinal I have ever worked for was Linda!


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## Cleanupman (Nov 23, 2012)

As more and more can not deliver on their contractual obligations they will fall off...Hopefully there will not be an idiot behind them with more promises they can not deliver on....


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## Racerx (Aug 29, 2012)

brm1109 said:


> I am really getting pi**ed off with how many regionals are opening their doors. Wow you have a business and now think you can be a regional. Well guess what if you are subbing from someone else and then taking another cut how is anyone supposed to make any money actually doing the work.
> If you want to expand your company, how about going out, hiring people and doing the field work. It seems that all anybody wants to do anymore is sit behind a desk and make money to flip paperwork.
> Again I believe in everybody trying to achieve the American dream, BUT at what point does it get stupid. If you are a true national and get the work directly from the bank than fine but don't try to sub work that you are getting as a sub yourself. If you can't handle the work load then don't say you can cover the area but then try to get it done on the cheap by somebody 3rd down on the list.
> Yes I have hired some people to do work for me that we couldn't cover. Was it subbing, yes but it was also in my own area not across the country. But I did it more to just satisfy a client. Was it worth it, not really after I got the 100.00 wint from the national minus their 20% I clear $80.00. Did I offer the obscene price of $40.00 for someone else to do it NO NO NO they got $70.00. Yes did I make $10.00 for flipping paperwork on it, sure $10.00 I didn't make 1/2 for nothing.
> I guess all I am saying is if you want to sub, pay the right rate. Sorry for the rant.


I can actually get on board with your rant, Altisource was our Big Daddy National peppered in with Cyprexx and one or two others, once Altisource went with their RFP all work thru them ceased, Cyprexx crapped on us because we had a rep that could'nt start a conversation without "Can you do me a favor?" and the others just don't have the workload so we went back to where we came from which is a General Contractor, every since then every *Craigslist* *Regional *has contacted me and I have yet to sign with a single one due to their sub of a sub of a sub pricing, I actually had a guy contact me last week offering 22.00 a property for snow removal!!?? he told me " I'm not even trying to make any money off this I just need help covering my 70+ properties"....my immediate thought was I'm glad you're" not trying to make any money" because *mission acomplished*...told my wife about his *offer* She cracked up....:thumbup:


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## Craigslist Hack (Jun 14, 2012)

Having been a regional myself I see both sides of this complaint. While I agree with you that regional pay is too low. There is no more money for them to pay. 



LPS pays $75.00 for a wint then they hack it down to $56.00 how could a company stay in business paying more than $40.00 to the contractor when it takes an hour or more sometime for the office girl to upload all of the bids that go with a simple winterization?
Most of us started working for regionals and decided to grow our business and work direct because we too were sick of the regionals. We try very hard to be a good company and it isn't always easy.
The nationals are not interested in a company that will only cover a few zips. I won't even talk to a guy that doesn't cover a 90mile radius of his house especially if he is metro. Everyone wants to and can cover metro.
The nationals force regionals to take on more area than they really want so the national gets rural coverage and they use the regional as a credit line. WIN WIN for them.
It's hard to pay ahead due to charge backs. We just recieved a $462.00 chargeback from a national for a trash out a sub did in October. The pics didn't justify the debris totals. Am I supposed to absorb this hit? I didn't screw up the pics.
We would love to cover a 2 hour radius of our office and are currently doing so with in House employees.
Since we have quit being a regional we went from having 435 open orders in September to having about 15 to 20 currently.
Our client base does not want to deal with 20 contractors in a state. They want to make one phone call and get results not chase guys all day.
The nationals create these layers on purpose.
I always feel like these guys don't need to be advertising for hacks on Craigslist in my area. I can handle most of the work here and don't want the rest (safeguard, FAS). The thing is the nationals are telling me they want 3 statewide companies per state and maybe a few that cover smaller areas.


Since we no longer cover an entire state I am 3rd on the list for work. We are getting far to many Bids, and reverifies. Orders that don't pay! This may have been the worst decision I have ever made financially? I feel better without the stress but I am getting stressed watching the money dry up.


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## STARBABY (Apr 12, 2012)

Doberman Properties said:


> Having been a regional myself I see both sides of this complaint. While I agree with you that regional pay is too low. There is no more money for them to pay.
> 
> 
> 
> ...


 
I only cover 75miles from home, and for years! I use to cover out to 200miles but stopped! going that far out you would burn up a entire day! never could see how covering an entire state could be profitable! 
One thing I have notice is it`s getting harder to cash flow my business! Due to all companies taking longer to pay and reducing what they pay on jobs!

I think the CYD pay for most companies is way to low! Cost of dumping ,insurance, fuel, ect!


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## GTX63 (Apr 12, 2012)

Doberman, I too watched my gross profits shrink too as I fired regionals and nationals, one by one. But my monthly net didn't so much.


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## Craigslist Hack (Jun 14, 2012)

STARBABY said:


> I only cover 75miles from home, and for years! I use to cover out to 200miles but stopped! going that far out you would burn up a entire day! never could see how covering an entire state could be profitable!
> One thing I have notice is it`s getting harder to cash flow my business! Due to all companies taking longer to pay and reducing what they pay on jobs!
> 
> I think the CYD pay for most companies is way to low! Cost of dumping ,insurance, fuel, ect!


There is no way to cover an entire state without hiring subs. Then that nightmare begins. The subs not the nationals are the reason I made the changes we have made. 

I agree with you on the pricing for some companies. We try to only work for companies that pay HUD with a 20% discount. THe problem is that narrows the field considerably. We do not do much REO work because of the low pricing and the packaging. We no longer do any post conveyance work and I doubt we ever do again. It doesn't pay anything and the QC is ridiculous. We prefer P&P work quick in and out jobs that for the most part pay better than the other stuff that is out there.


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## Splinterpicker (Apr 18, 2012)

doberman properties said:


> there is no way to cover an entire state without hiring subs. Then that nightmare begins. The subs not the nationals are the reason i made the changes we have made.
> 
> I agree with you on the pricing for some companies. We try to only work for companies that pay hud with a 20% discount. The problem is that narrows the field considerably. We do not do much reo work because of the low pricing and the packaging. We no longer do any post conveyance work and i doubt we ever do again. It doesn't pay anything and the qc is ridiculous. we prefer p&p work quick in and out jobs that for the most part pay better than the other stuff that is out there.


true that


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## FearlessTeapot (Oct 12, 2012)

Not to be obvious - but Regionals exist because that is who a National wants to work with. They don't want someone who can cover 50 miles, they want someone who can do a whole state. The prices suck, but what can you do? Everyone wants to keep their lights on. I've seen both sides as well, and trust me, it's far more stressful as a Regional than as a local contractor.


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## JFMURFY (Sep 16, 2012)

The thought of banks allowing National Vendors to subcontract work out to firms that don't have a physical presence in the State they are servicing is a poor business model. 
#1 They don't have a pulse on the area resulting in unknown market conditions. #2 Information gets delayed, resulting in late responses from owners.
#3. With the low pay comes piss-poor work and QC of the product suffers.. 
#4. If something goes wrong, the blame game starts.


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## cvalley (Feb 4, 2013)

Just say NO!

TO REGIONALS! 

Let the bottom feeders choke on their own business blunders and fall to the wayside.


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