One of the biggest Trends we are monitoring are the Mergers going on in the Mortgage Field Services Industry. Dynamic or otherwise, Mergers are always something to pay close attention to. One of the recent Partnerships we are following involves a Real Estate Firm and a Property Preservation Contractor. A Maxim I always bring to my Consulting with Clients is, Get Real or Go Home.
Each and every day, Contractors are requested to go in to an Initial Inspection and document, from top-to-bottom, the Asset. The pricing on this ranges from $5 - $25 and the reality is that as an Inspection, per se, it has no value. As a Broker Price Opinion (BPO), it is priceless!
The reality is that Contractors in the Industry are but cogs in the Wheel of Commerce. Like that Wheel or not, it spins to the Tune of those capable of Playing the Music. The Financial Institution needs to know what an Asset is worth and then must document that value through a plethora of paperwork. Then and only then is the Financial Institution able to move the Asset from the Unproductive or Toxic Debt Line Item to the Credit Line Item.
The foregoing paragraph is really a simplification of a very complex issue; however, it serves the purpose of layman's terms. What I am driving at is the simple fact that until recently many of the Brokers and Contractors out there have presumed that their only streams of revenue are conditioned upon the grace of Work Orders issued out by National Order Mills.
I disagree. The status quo of the Industry; the quid quo pro is beginning to be challenged by entrepreneurs whom have decided to think outside of the box. Companies whom singularly might not have stood a chance at competing are now realizing the strategic value of Partnerships to compete in an ever changing Marketplace.
Brokers have a unique relationship with Financial Institutions in that they actually sell the Assets. Herein lies the problem: For the Broker to enter into the Fray they must have a Proxy. No other nice way to put it and remain legal. Partnership allows for
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