# REO/Property Preservation



## Guest (May 9, 2010)

:furious:In recent months we ventured into the REO/Property Perservation business and the only way to get into this business was acting as a sub-contractor to a middle man company with a National Contract with Fannie Mae. After three months we found out that there is no way a sub-contractor can make any money working through these middle men. You can find pay rates for services on cubicyardus.com and these middle men do not pay near what the posted rates are and you will lose money. If you do not keep details ledgers of your transactions, when it comes time to get paid, you will find all kinds of deductions from these middle men for any number of reasons, even when you do the services and they are approved. We have been trying for months to work on a direct bases with the government agencies and can not find an in road. Can't seem to get in with the brokers or banks either. Does anyone know how to make these inroads? The prices the government is paying you can make money if you can get the middle man out of the way. Takeing all suggestions.


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## rselectric1 (Apr 12, 2012)

Just a friendly heads up, please do an intro in the introduction section so the posters can get to know you a little. There is a wealth of information here.

Welcome to CT :thumbsup:


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## Guest (May 9, 2010)

WeHelpYouBuild said:


> :furious:In recent months we ventured into the REO/Property Perservation business and the only way to get into this business was acting as a sub-contractor to a middle man company with a National Contract with Fannie Mae. After three months we found out that there is no way a sub-contractor can make any money working through these middle men. You can find pay rates for services on cubicyardus.com and these middle men do not pay near what the posted rates are and you will lose money. If you do not keep details ledgers of your transactions, when it comes time to get paid, you will find all kinds of deductions from these middle men for any number of reasons, even when you do the services and they are approved. We have been trying for months to work on a direct bases with the government agencies and can not find an in road. Can't seem to get in with the brokers or banks either. Does anyone know how to make these inroads? The prices the government is paying you can make money if you can get the middle man out of the way. Takeing all suggestions.


Pick your "middlemen" wisely and you can make a decent living...not get rich but at least pay your bills. 
If you want to acquire accounts directly with a Gubberment agency or a bank then you will need the following:

1) Able to complete work in a minimum of 5-20 States.
2) Be able to bankroll your operation and pay your sub-contractors since reimbursements are normally 120 days out. 
3) Supply all insurances
4) Have lawyers to process titles and conveyance issues
5) Have accountants to meet the Gubberment paperwork
6) Have IT people to maintain the computer software
7) Have an entire floor of Customer Service Reps that are knowledgable in the regs (thats the tough one)

Etc Etc Etc... Basically not easy to work directly for any agencies or any bank. Now you can get in with the realtors but most realtors have been working with the same contracting companies for years and you "may" get some scraps, not enough to pay the bills, but you have to start somewhere. 
Its a tough business to actually complete and make any $$. Now you could be the fella on ebay selling the program "We Teach YOU how to do a trashout and make $1300 per day net" for only $100.00. Heck they are probably the only ones making a profit :clap:


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## Guest (May 10, 2010)

From the very little exposure to this industry that I've had, it just seems to me that it contains more than its fair share of unscrupulous individuals. But I know from doing a bit of research, and reading on this very forum, that not everyone involved with it is indeed a shady/shiftless/seedy character. 

Far to many "middle men" involved, which certainly lends itself for such shady/shiftless/seedy activity.


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## Guest (May 10, 2010)

I've got two good friends that are in the REO biz and they seem to be doing very good. One guy gave up his remodeling biz because he could make more money doing REO. All their work comes from a national vendor. 

I take some of their out of area stuff, thats local for me from time to time, and I'll say this, it's not glamorous work but it can pay well most of the time.

As my friend says " sometime you eat steak sometimes it hot dogs"

I do preferr steak.

Oh yeh lets get the goverment more involved in this big as* mess I'm sure they can fix it.


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## Guest (May 10, 2010)

Hi,

Pick the middleman and ensure that a particular peercetage of the business will goes to him, if he retain the clients ort providing continous services. Ensure your cordinators to work with the full efficiency to serve the quality work. maintain a online marketing division team which bring business for you. you can seracg on the Google for the more information and other reakted things in this business. you can ask from the building contractor uk about the business in Uk and other cities of the UK.


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