# The $350 Initial



## GTX63 (Apr 12, 2012)

Just curious if anyone on this forum is currently doing flat rate initials for regionals? I recently had an "offer to work" for a regional out of California. The two orders he had were approx 75-90 miles one way, required all initial services for $350 and then calling in for approval for a long list of items.
This was not a craiglister-they solicit thru local banks and brokers.
I know folks are concerned about getting bashed if they post about this topic but I would honestly like to hear from some people who are doing them and how do they make them work? Maybe I'm stuck in yesterday and can't handle the new math.
I'm not looking to debate anyone: I already declined the guy and he knows why. I would just like to hear some honest input from those who are/have a few of these under their belts. Tell me why you or your biz can put a little profit in the bank on these. The extras? Quick turnaround?


----------



## Wpb REO (Oct 23, 2013)

*350*

I. Doing this right now...same price...
350...includes 20yds of debris...Janitorials....lawn cut which. Includes any bushes and trees on the perimeter touching the home
250...for condos...Janitorials and debris

I'm in west palm beach...these units are close to each other and I'm still having a tough time making money...

The problem is they beat you up over debris...and they have 3 different inspectors white glove the unit...and they make you return the unit for all kinds of BS

We did a condo....with about a bag of trash and Janitorials...cleaned in 2 hours...

Then we bid a condo...3rd floor full of furniture and trash...and it was filthy
I reported 38 yds....18 over the 20...they refused...said I had to take the good with the bad...they came back with a counter offer 370....so generous...

They do this all the time...so now I have gone out to work directly for realtors
It pays a lot better and a lot less stress


----------



## GTX63 (Apr 12, 2012)

Again, I'm not knocking, just asking.

Hypothetically-
20cyds @ say $32.50 is $650
Sales Clean is $125
Initial Yard $75
Looks like, with generic numbers you are at about $845 with no securing or winterization?

Expenses on a $350 job are-
with 20 cyds you will have to pay for the dump.
$65-$100
One helper $100
Materials-gloves, trash bags, fuel for mower, truck, etc-$35


I'm painting this with a broad brush so others can put a little color on this.


----------



## Craigslist Hack (Jun 14, 2012)

GTX63 said:


> Again, I'm not knocking, just asking.
> 
> Hypothetically-
> 20cyds @ say $32.50 is $650
> ...


We did a couple of $1,000.00 initials for VRM as a favor to a realtor I wanted to keep happy. Even on clean properties that sold fast we really didn't make any money.


----------



## Wpb REO (Oct 23, 2013)

*Right on*

Those numbers are good....almost exactly what I deal with...

On my way to a job from realtor....500.00 to put trash on the curb and broom sweep the unit....


----------



## cover2 (Apr 3, 2013)

GTX63 said:


> Just curious if anyone on this forum is currently doing flat rate initials for regionals? I recently had an "offer to work" for a regional out of California. The two orders he had were approx 75-90 miles one way, required all initial services for $350 and then calling in for approval for a long list of items.
> This was not a craiglister-they solicit thru local banks and brokers.
> I know folks are concerned about getting bashed if they post about this topic but I would honestly like to hear from some people who are doing them and how do they make them work? Maybe I'm stuck in yesterday and can't handle the new math.
> I'm not looking to debate anyone: I already declined the guy and he knows why. I would just like to hear some honest input from those who are/have a few of these under their belts. Tell me why you or your biz can put a little profit in the bank on these. The extras? Quick turnaround?


I wouldn't do the house next door to me for those numbers let alone drive 75-90 miles. I don't care if there is 10 yds of debris you're 90 miles from your base and you have to find a dump or haul it all the way back not worth the hassle. Just my 2 cents worth.


----------



## S&Kpropertyservices (Feb 19, 2013)

We won't do them. Even with no debris at all, the numbers suck. We try to stay away from anything with a sales clean. Even at initial pricing, the time it takes to complete correctly versus the pay is not profitable for us.


----------



## Craigslist Hack (Jun 14, 2012)

S&Kpropertyservices said:


> We won't do them. Even with no debris at all, the numbers suck. We try to stay away from anything with a sales clean. Even at initial pricing, the time it takes to complete correctly versus the pay is not profitable for us.


My thoughts exactly. We HATE sales cleans. We also don't care for REO work because of the low ball package BS.


----------



## Gypsos (Apr 30, 2012)

We cherry pick the work. We completed five of these flat rate jobs for $365 last week. The longest one took 5 hours the fastest was 2 hours. We pass on the ones with the max debris counts for the flat rate.


----------



## GTX63 (Apr 12, 2012)

But how do you know what you have until you get there?


----------



## Craigslist Hack (Jun 14, 2012)

Gypsos said:


> We cherry pick the work. We completed five of these flat rate jobs for $365 last week. The longest one took 5 hours the fastest was 2 hours. We pass on the ones with the max debris counts for the flat rate.


I tried that with the VRM program even had a broker who loved us. They still had an inspector to out and nickel and dime me to death. 

We are on a package trash out today for a broker. It pays $1,550.00 as long as I don't bid anything as over the allowable. It's also aproperty we had with LPS so we serviced it for a little over a year.


----------



## Gypsos (Apr 30, 2012)

GTX63 said:


> But how do you know what you have until you get there?


I flat out refuse to do any work until I have a work order in hand for the price I have agreed to for a job. 

So when we get assigned a new property I visit it first to determine if I am willing to do the job and how much I want to do the job.


----------



## honyocktrapper (Feb 9, 2014)

*Percentages*

Hello, I'm new to this site. We've been in Property Preservation and REO services for over 7 years. Started out with the recession - business grew big and fast. Made money in the beginning. The Nationals got more and more greedy - came up with "cost estimator". If you are new to this, this is Bull****. Each state is going to be different with costs. This is just one more way for them to screw you over. I finally found a cost estimator site in which I could fix my own costs. I no longer use it because I no longer work for that company. This business is now difficult to make money in - unless your wise to their systems and how to play their games, and it is a game. Be careful of their percentages. They take a lot. Once in awhile you'll get a "flat fee" and by no means be late or you'll be punished financially. We use to make anywhere from 125.00 to 400.00 per grass cut, now its way below 100.00 per grass cut. The new name for this is "WORK HARDER FOR LESS". I would like to see those carpet cubical know nothings do this job. Oh, you missed a photo, we'll need to make a deduction or go out and take more photo's for free. These companies main goal is to get you to do as much as possible for as little as possible. Hold your ground on pricing - you may lose the account but you can't work for nothing either. Shrink your zip code, don't hire any extras unless it's once in awhile. Keep your money "in house". If you take too many work orders out of zip code they will expect you to go back to grass cut and plow for their allowables - can't make money doing this. Same all important emails from them regarding work orders where more money is granted, certain agreements have been made. So much gets lost in their systems due to all the idiots they hire. The same work order results are sent from one person to another asking the same stupid questions. I have had to, in several instances, pull up my old emails for proof and I've won my cases each time. They could not take away the money. Remember this: You can make money playing this game - shrink zip code, stay smaller and in control, save copies of your pcr's, save ALL photo's and important/proof emails. They are not your friends and don't care about you. They are banks and are in business to make money, and trust me - they make a lot of F------ Money off you! We were making 1/2 a million for several years in a row, and that's after they took their 20% :mellow:. We continue to do this job but we are very small now and have no desire to run that hard to make less and less money. Life is too short to give it away to a bank or any other business that just doesn't really care about you. Even if they say they do - THEY DON'T!!!!!!!


----------



## REOmadness (Jun 8, 2013)

I remember when cyprexx went to a flat rate, we did like gypsos and cherry picked the easy ones and passed the hard ones to idiots who will work for nothing. If we could not complete in a couple hours then send it on down the line. I always liked ptc workorders, always made good money on them and no sales clean.


----------



## STARBABY (Apr 12, 2012)

REOmadness said:


> I remember when cyprexx went to a flat rate, we did like gypsos and cherry picked the easy ones and passed the hard ones to idiots who will work for nothing. If we could not complete in a couple hours then send it on down the line. I always liked ptc workorders, always made good money on them and no sales clean.


When did Cyprexx go to a flat rate? Have worked for them since 2007


----------



## BRADSConst (Oct 2, 2012)

STARBABY said:


> When did Cyprexx go to a flat rate? Have worked for them since 2007


Cyprexx is flat in Wisconsin for FNMA, not sure about anything else


----------



## STARBABY (Apr 12, 2012)

BRADSConst said:


> Cyprexx is flat in Wisconsin for FNMA, not sure about anything else


I worked for them before they got Fannie Mae and they paid flat rate.


----------



## Gypsos (Apr 30, 2012)

STARBABY said:


> When did Cyprexx go to a flat rate? Have worked for them since 2007


Here in Florida it has been that way for the last 4+ years.


----------



## honyocktrapper (Feb 9, 2014)

The company we were working for had flat rates also, but they were not even close to what Cypress paid. We were told you take the good with the bad (stupid concept). You need to make money on every job just like every other contractor who does a job, otherwise what the hells the point of working. Another issue with this is that there were more bad than good. Dumping fees in our state are expensive, and paint - what a pain in the ass. The amount of gallons of paint in the past seven years is unbelievable. As to flat rate, we could not pick and choose. If we did not take everything they gave us it went against us. We were rated in bronze, silver and gold. Gold taking the less of the percentages, but that was a crock of crap because they made more off bronze contractors with more percentage taken. Within the seven years we were with this company we probably had 20 different liaison's - only a few were smart enough to understand the dynamics of a house and weather conditions. I was asked by one of their employees "is that latex or water base paint"  Really, OMG!! Another time I spent 10 minutes on the phone explaining to another one of their employees how to tell (looking at the picture) if a gas meter was turned on or not. This bothers me, it sickens me that these idiots are responsible for our paycheck. Another complaint are the inspectors - again who know nothing about a house. They cause more problems with wrong reporting than anyone. Maybe here's an idea. Pay the inspectors enough money to spend a little more time at a property and inspectors who understand the concept of a house and it's condition, not some little chick in high heels running from house to house trying to make enough money to survive. What about the Realtors - OMG we have had several realtors flood the house and then we are blamed. Thank god for pictures as proof that we did everything correctly. This job would be much better if these companies would treat their contractors with respect and know that we are knowledgeable (at least most of us) regarding what we are doing, and pay us accordingly. STOP FINANCIALLY RAPING US!!!!!! YOU ARE STEALING OUR MONEY. Without us, these companies would be screwed - who else is going to drive 200 -300 miles a day for minimal money to check on the "bank's" properties - who in my opinion are the worst landlords ever. They should have left he people in the house, would have been better off.


----------



## GTX63 (Apr 12, 2012)

The optimist thinks he is putting the money into his pocket...


----------



## Molly77 (Feb 10, 2014)

honyocktrapper said:


> Maybe here's an idea. Pay the inspectors enough money to spend a little more time at a property and inspectors who understand the concept of a house and it's condition, not some little chick in high heels running from house to house trying to make enough money to survive. .


Heyyyyy, I do not wear heels during inspections...they would get ruined! Maybe a little sparkle but no heels, that just isn't practical!&#55357;&#56833;&#55357;&#56861;
Besides..aren't we all just trying to make a little money to survive?
On a serious note-I get it-and get just as frustrated when things aren't done right, and other vendors do such a poor job and seem to get away with it and I can get sent back for something stupid like trimming a bush.


----------



## nurumkin (Sep 28, 2012)

*re*



Gypsos said:


> I flat out refuse to do any work until I have a work order in hand for the price I have agreed to for a job.
> 
> So when we get assigned a new property I visit it first to determine if I am willing to do the job and how much I want to do the job.


This is what made working for safeguard completely not profitable (I know I was stupid to try). They would send an order for an initial services we had never seen. Being rural MN most were at least an hour away. So I could take my chances and drive the truck/trailer there only to find 2 cubic yards (which they would knock down to one and wouldn't even cover scale fees if I choose to dump it), or I could waste 2+ hours and take the jetta to scope it out. If there was money it in to begin with I would have been OK, but best case scenario I made slightly less then my time was worth. And worst case I lost my ass.


----------



## REOmadness (Jun 8, 2013)

cyprexx has been on flat rate here for 3+ yrs. Its like $380 plus $90 for wintz.


----------



## STARBABY (Apr 12, 2012)

REOmadness said:


> cyprexx has been on flat rate here for 3+ yrs. Its like $380 plus $90 for wintz.


It`s $500 plus wint here


----------

