From Contractor to Consultant.


The only way in the REO industry for a contractor to set themselves apart from another contractor is to be more than a contractor. I thought it was about quality of work — that coming behiond the other guy and correcting his mistakes — would set us apart. It does on a certain level, but mostly in the warm fuzzy realm. It makes us feel better about ourselves for sure. We know the work we are doing is thorough, with skill and with purpose. And, for the customers you gain over time through this approach it matters. I’ve said before there are many brokers and agents nationwide who would prefer to work directly with contractors on the assignment level rather than having a large medoary agency (sich as Cyprexx and Safeguard) handle this aspect. Still true.

But, now I’m realizing it’s hard under the current settings for a contractor to build a large, established company (especially in a metropolitan city where it is so saturated) by quality alone. You have to just be more. And smarter.

That’s why I push greatly towards the Consulting side. Not everyone can do this well — especially as it pertains to the REO industry. There are thousands of adequate contractors out there who can board up a window. But much fewer consultants — people granted a substantial degree of trust by construction lenders to cure issues with these vacant properties.

REO departments, especially in the “larger” banks, government owned, are swamped with managing the paperwork. And, the bulk of them are handing their Preservation work to the huge vendors mentioned earlier. Seems to me the best position to take if you want to build your company is to gun towards the Consulting side. The banks need qualified professionals who know how to speak with municipalities in different cities and states. People who can do the footwork and research needed to save them dollars they would have to pay on fines were it not for their help.

Are you planning to stay around for a while? Quality will help you on a level, but being more than a contractor is crucial.

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