Must Be Well-Funded.

When I started building my contractor network, I wasn’t thinking too far ahead. Stuck in the moment of being a startup company, I just needed some vendors who really knew their stuff and were dependable.

My highest priority has always been matching with people who find the same character traits important as I do — honesty, integrity. Because of the nature of business from my end, where I assign projects to contractors in areas I cannot access quickly, I am forced to rely heavily on their character. Unfortunately, I have had many experiences where someone sold themselves well and was not able to follow through with actions. It’s imperative that those who are in the field in my name reflect my values.

Important as strong character is to me, I’ve recently added a more material requirement for myself when handpicking contractors. And, this has to do with the money they have at their disposal.

Yes, money. MONEY!!! It’s all about the green! Mwwuahhh!!! Mwwuahhh!!!

Not true.

The REO industry is filled with vendors who used to do something else. General contractors who have not had a single home to build in a really long time are coming into it. I was introduced to a person who at one time was a lawyer and now is running an REO workshop. Ex-realtors. All-purpose handymen. Unemployed people. The word has gotten out that REO is a good place for those who are in-between jobs or out of a job or retired to exercise an entrepeneurial spirit and a little elbow grease. There is money to be made because of the overwhelming volume.

The negative aspect of this when I am approached by someone who wants to work for me is they usually are not well-funded. They come into the business with very little capital (as I did). The difference between them coming in with little to draw upon vs. me starting with little is they are the ones who are required to purchase materials to complete the project, pay fuel expenses and pay their helpers. I sit at my laptop most of the time, and spend relatively little to operate. Which makes me feel warm.

In the beginning, I wanted to hire everyone who was hungry. As I was able to experience the thrill of turning hard work into a nice income, I felt a desire to help others have that chance. Equal opportunity.

Now, I see it differently. And it’s this way because I am going in a certain direction with Integrity REO Solutions. The payment cycle seen in the industry is difficult for those who are not well-funded. 45-60-90 day wait times for payment suck for some people. But I have found those who are prepared well for these turn times are larger, stronger, and less worried about their financials.

When I partner with contractors now, I work with those who are well-funded. Those who have enough money to complete multiple large projects for me without tapping out. Those who won’t pressure me about payment after a couple of jobs. Those who won’t delay a project because they see their resources dwindling.

Hiring only well-funded contractors gives me the flexibility and stamina I need to stay around for a while. Money is not all important to me, but I do need those who work with me to have some. Enough to invest in many projects to get many more.


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