# New to P&P desperately need advice



## shark02 (Feb 5, 2015)

My cousin owns a p&p company (i think all his work is for safe guard) small operation 2 man crew he runs around takes care of bids follows up on work has his own truck & equipment & owns another truck & equipment for his 2man crew. He works a ton & covers a large populated area, hes asked me if i wanted to take on a new contract under his company but i run my own crews or use a 2 man crew (me & a hand i hire) & do p&p work in that area.. ive got some $ & half of the equipment i need but im worried about quiting my cush job to chase this venture.. not scared of hard work or long hours if the $ is really there... thoughts advice???????? He acts like its worth the headache for the $ u can pull in


----------



## Wannabe (Oct 1, 2012)

Id quit the P&P business and keep doing the lawyering


----------



## JoeInPI (Dec 18, 2014)

Quit a cush job for a possible Safeguard-type contract? No way.

Quit an iffy job to start a business/crew working for realtors and private customers, possibly.

I would stay where you are if you really do have a great cushy job. It is a lot of work to diversify out of P&P to private customers to make money, and if you don't have the time or pockets to make nothing for a decent amount of time, I'd pass, especially without knowing exactly who this new contract is with.


----------



## shark02 (Feb 5, 2015)

Its just taking over a new area of safeguard .. i said a "new contract" but i just ment a new area... my cush job pays mid 30s range with not much of a future but benifits are good & its oklahoma so mid 30s isent bad here.. just not great & im hugry to make $


----------



## Ohnojim (Mar 25, 2013)

*Keep your job and do some graas cuts or wints or maids*



shark02 said:


> Its just taking over a new area of safeguard .. i said a "new contract" but i just ment a new area... my cush job pays mid 30s range with not much of a future but benifits are good & its oklahoma so mid 30s isent bad here.. just not great & im hugry to make $



for extra cash, you will be much better off, and won't need to make a large investment.


----------



## BRADSConst (Oct 2, 2012)

shark02 said:


> Its just taking over a new area of safeguard .. i said a "new contract" but i just ment a new area... my cush job pays mid 30s range with not much of a future but benifits are good & its oklahoma so mid 30s isent bad here.. just not great & im hugry to make $


If your cousin is going to sub you Safeguard work, I can guarantee you that you will be "hungry" and won't be "making $". 

The advice that you are looking for is here. I would suggest you invest a lot of time reading here. The search function is your friend. Try safeguard, screwguard, safescrew and variations on that. When you're done reading, you may just decide to NOT invest in your cousin or Safeguard.


----------



## shark02 (Feb 5, 2015)

Gaww u guys might have saved me thousands of dollars & lots of added stress! Thanks for your help fellaz^...
Why is he acting like im gonna double my income tho.. i told him not to bs me & im almost positive hes making some good $


----------



## BRADSConst (Oct 2, 2012)

shark02 said:


> He works a ton :sad: :wallbash:
> 
> hes asked me if i wanted to take on a new contract under his company :no::no:
> 
> He acts like its worth the headache for the $ u can pull in:hang:


That should just about sum it up.......


----------



## shark02 (Feb 5, 2015)

Hahahaha^ epic win that sounds like u layed it out pretty good... maybe i was just blinded by the ideal of more $


----------



## shark02 (Feb 5, 2015)

I honastly think hes making $ hes going at it 7 days a week, whys he blinded by how great it is?


----------



## BRADSConst (Oct 2, 2012)

shark02 said:


> Why is he acting like im gonna double my income tho.. i told him not to bs me & im almost positive hes making some good $


 How long has your cousin been in business? How long has he been with Safeguard? No need to answer on the open forum.

If you are currently making mid, $30k, you will more than double your GROSS income and he is correct. However, after you take out labor, insurance, fuel, disposal fees, etc. your NET income won't be anywhere close to your GROSS income. This is the bait and switch that occurs to newbies that aren't business savvy and do not know how to do a breakeven analysis or what a breakeven analysis is.

I speak from experience, My first year in P&P many years back I grossed over $117k from 1 P&P client. When I went to do my taxes, I about chit myself. I worked long hours for very little money leftover for me......


----------



## shark02 (Feb 5, 2015)

I think its been a year or almost a year hes been doing it im not with the company so i think i can say that without getting anyone in trouble lol


----------



## BRADSConst (Oct 2, 2012)

shark02 said:


> I honastly think hes making $ hes going at it 7 days a week, whys he blinded by how great it is?


Ok, slow down a bit. Working 7 days a week does not guarantee he's making $. Maybe he has to work 7 days a week just to keep his head above water. I don't know.

Why is he blinded? I can speak from experience here too. P&P is an addiction. Make no bones about it. It is just like a drug. You wake up looking forward to checking your queue and seeing what jobs came in. Work your azz off getting them done. Stay up half the night uploading results and get up the next day and do it all over again. It's a rat race that's hard to break. It is exactly like Robert Kyosaki describes in his books.


----------



## shark02 (Feb 5, 2015)

I just mean blinded by how much moneys comeing in & not realizing how much time & $ hes dishing out to see all that money rolling in weeks later... thats all i mean, i followed him to a couple jobs it looks like it would be cool... i can see how it can be rewarding making a property safe & look better 4sure


----------



## shark02 (Feb 5, 2015)

Im curious tho can anyone give me a ballpark amout someone can make after costs of fuel truck, expenses, insurance dump fees hiring 1 hand.. maybe a ballpark figure & how many days/hours a week expected to work for that amout?


----------



## Wannabe (Oct 1, 2012)

Shark, 

There is no possible answer to that. You could make $5000 net this week and lose $20,000 next week for a stupid missed picture. A good analogy is: picking nuggets of gold in a minefield. 

Those nuggets are so small now that you must work 80 hrs a week to make a minimum wage. Some of the old timers have good/better contracts than you or your newbie cousin can get so you will get the scraps for a few years. Oh heck maybe in a few weeks since even the old timers are exiting the field cuz THERE IS NO FUTURE. 

Keep your job and do some evening and weekend mowing or snow removals locally and you will be better off.


----------



## All Island Handy (Dec 12, 2012)

Personaly if the words safe guard are included in anything buisness i run the other way there is nothing good come from that company. I would highly recomend listening to what brads, and wannabe are saying. I would not suggest leaving a good job to go blindly into p&p to anyone. If you read this forum for a while you will see manny threads just like yours and you will notice some paterns....same group of verry smart, experianced guys telling people just like you the same thing "dont do it" "stick to what your doing" ect....you will also find the threads where they come back saying "man i should have listened to all of you" ect.....all i can realy say is there are some people that can make this work and not go bankrupt breaking there back but they are far and few between. Good luck let us know how it goes for you....


----------



## shark02 (Feb 5, 2015)

Thank you guys so much for your help & advice i really do appreciate it alot! Ive been racking my brain trying to decide for a while now if this is something im willing to take a risk on, just this morning i was really leaning towards taking the risk but without the great advice from hard working professionals like yourselfs i kinda felt like i was rolling the dice, i know it takes risks to make $ but i think this is a risk that could run my saving & my pacents into the ground


----------



## GTX63 (Apr 12, 2012)

The opposite of the words "safe" and "guard" are "dangerous" and "unprotected".

I was doing it when Hillary was president. I would not steer you wrong.


----------



## jason2717 (Dec 28, 2014)

Don't even think of doing work for Safeguard. Cheapest company out there


----------



## UnitedFieldInspections (Dec 20, 2012)

Save your time and dont do it.Don't Walk RUN! Lol you will thank me


----------



## BPWY (Apr 12, 2012)

shark02 said:


> Its just taking over a new area of safeguard .. i said a "new contract" but i just ment a new area... my cush job pays mid 30s range with not much of a future but benifits are good & its oklahoma so mid 30s isent bad here.. just not great & *im hugry to make $*







Keep wracking your brain and some thing will come to you, some thing that is far safer than working for SG.

My accountant says find some thing recession resistant. 
I don't believe any one thing is recession proof.

But her advice is to find some thing in food, alcohol or candy. 
1. Every body gotta eat, in good times and bad
2. in bad times folks will drown their sorrows and in good times they celebrate
3. very similar to 2


I'm working on 1, hope to have the change made to that by mid/late summer.


----------



## shark02 (Feb 5, 2015)

I do all kinds of stuff on the side flip cars/trucks use to buy & flip cellphones make my own vape juice & make quite a bit of extra $ doing that ive been doing that sence i was a kid just finding something i really injoy doing & making a living off it has been a battle.... i find ways to make quick money & jump but working 7 days a week busting my hump trying to make a buck with SG sounds like its far far from freedom or quick $... sounds more like get drawn in then they own you if u wanna eat & put a roof over ur head lol


----------



## hammerhead (Apr 26, 2012)

shark02 said:


> I do all kinds of stuff on the side flip cars/trucks use to buy & flip cellphones make my own vape juice & make quite a bit of extra $ doing that ive been doing that sence i was a kid just finding something i really injoy doing & making a living off it has been a battle.... i find ways to make quick money & jump but working 7 days a week busting my hump trying to make a buck with SG sounds like its far far from freedom or quick $... sounds more like get drawn in then they own you if u wanna eat & put a roof over ur head lol


just started vaping. how do you make it yourself?

As far as recession proof become a mortician.


----------



## BPWY (Apr 12, 2012)

hammerhead said:


> As far as recession proof become a mortician.





:thumbsup:

I hadn't thought of that one. 


I'll pass, food sounds more my style.


----------



## PropPresPro (Apr 12, 2012)

BPWY said:


> Keep wracking your brain and some thing will come to you, some thing that is far safer than working for SG.
> 
> My accountant says find some thing recession resistant.
> I don't believe any one thing is recession proof.
> ...


My grandpa used to tell me thare are 2 recession proof businesses: 
Bars & Womens hair salons


----------



## GTX63 (Apr 12, 2012)

My grandpa said it was taverns, gas stations and funeral homes. Go figure.


----------



## shark02 (Feb 5, 2015)

U guys are funny.... anyone have training on being a pimp?.. oldest business ever... never fails theres always someone payin to get a peace hahaha


----------



## shark02 (Feb 5, 2015)

& hammerhead i pm'ed u about the vape juice


----------



## PropPresPro (Apr 12, 2012)

shark02 said:


> U guys are funny.... anyone have training on being a pimp?.. oldest business ever... never fails theres always someone payin to get a peace hahaha


Sorry, that's a totally different forum. . .Good luck! :thumbsup:


----------



## w-s (Oct 27, 2012)

If you are just a sub of someone getting work from safeguard you are likely to fail.

Safeguard already takes anywhere from 15-30% discount. The first sub will also take another 15-30% leaving you with about 50% of the payout.

Here is the FHA exhibit C allowables that safeguard requires you to provide at every FHA property. Remember, you will be only getting half of the amount.


Roof Bids Is the roof leaking, or will it leak if it rains?
- If yes, submit the bid.
- If no, do not submit the bid.
Roof Replacement: Is the roof structurally
unsound and will collapse of a person walks on
it?
- If yes, ok to submit the bid and have tarp
installed for temporary protection.
- If not, submit bids or order work to patch or
repair.
Patch or repair to be bid or
completed at $2.00 per square
foot of affected area.
Tarps to be installed for $300 for
up to 1000 sq. ft. or $600
for >1001 sq. ft.
Full roof replacement bids to be
supported with Xactimate cost
estimator tool.
Mold Bids What is the source of the moisture?
- The source of the moisture must be cured or
bid.
Mold should always be bid.
Cap Wires All wires to be capped whether or not the
electric is on.
Do not replace or install outlet or switch plate
covers.
$1.00 per set of exposed wires.
Cap Gas, Water,
Sewer Lines
All water and gas lines to be capped whether or
not utilities are on.
$5.00 per gas line
$10.00 per water line
$15.00 per sewer line
Handrails To be installed or bid if more than 3 risers and
evidence of previously present. Interior or
exterior. Like kind and quality for
replacement. Installation of rough lumber not
acceptable.
$11.00 per linear foot.
Decks - holes or trip
hazards
Must be repaired if unsafe to walk on. $10.00 per sq. foot.
Steps Exterior only. $15.00 per tread
$15.00 per riser
Extermination Treat and clean with over the counter products. $30.00 per occurrenceBids only to be accepted for licensed
exterminators on their letterhead.
Windows Reglaze is primary method by which windows
are addressed.
Reglaze = $1.75 per UI
Window Locks To be installed on 1st floor windows if locks are
missing.
$10.00 each.
Slider Locks Necessary for glass sliding doors to be double
locked.
$15.00 each
Graffiti Cover all vulgar graffiti on the interior or
exterior. Cover all exterior graffiti. To be
covered with a stain blocker, like Kilz.
$1.00 per sq. ft. of affected area
Clean toilets or
refrigerators
Toilets to be cleaned if excessive and preventing
winterization of the toilet.
Refrigerators to be cleaned if moldy and unsafe
to store food in.
$80.00 per toilet
$60.00 each to clean
refrigerators/deep freezers
Shrubs, Trees, and
Vines
To be trimmed and cut back if causing damage
to the structure. Not to be trimmed for
cosmetic maintenance.
$30.00 to trim all shrubs
$40.00 to trim each tree
$30.00 for all vines
Above ground pools Drain, dismantle and remove if in poor condition
with no surrounding deck or permanent
structure.
Note: safeguard only dismantles and removes
above ground pools post-sale, unless citation
posted in pre-sale.
Drain, dismantle, and remove the
pool as part of debris removal. Fill
in any resultant depression to
maintain safety at $75/CYD of dirt.
Pump water from
basement or
crawlspace
Must be completed while onsite and water
damages must be reported. If a bid is required,
it is to be submitted after the work has been
completed with before and after photos to
support. A bid to professionally dry out the
property must be submitted.
$300 for up to 1 ft. of water depth
$500 for over 1 ft. of water depth


Don't forget that all of this is considered self-employment income and is taxed at a higher rate than w2 income...save your expense receipts..and .56 per mile deduction really adds up, but if you do not have that info you will pay more in tax than you ever imagined.

With safeguard you are giving the banks a full home inspection for free. You need to be able to find the allowables and be able to complete them otherwise nearly every job is a losing job.


----------



## shark02 (Feb 5, 2015)

Thanks for the advice... i see uve done alot of work for sg?^


----------



## w-s (Oct 27, 2012)

shark02 said:


> Thanks for the advice... i see uve done alot of work for sg?^


SG is about 80% of my PP work each year. My partner also does side work for private people, and I also provide accounting services to a couple local businesses. 

Our revenue is about 200,000 a year from safeguard. We have a C-Corp and pay ourselves a pretty low salary, but we also pay 56 cents a mile driven(tax free) and I rent my garage and office to the corp(which is not earned income, so lower tax). We use the section 179 depreciation for any asset we purchase and our Corporation shows very little profit.

Its not terribly hard work, but you need to be well-versed in alot of areas or hire people that are. Also, if it wasn't for my accounting knowledge I would lose alot of money to tax.


----------

