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
this. Combine the ability to be in on the Front End and to be able to participate with a prospective purchaser with respect to rehab and you get a match made in heaven.
Behemoths like Safeguard Properties (SGP) will never be able to successfully cross over. The viable hybrid, required by today’s Marketplace, is greek to SGP. SGPs Model was built upon Volume. Its antiquated technology could not sustain the nimble, aggregated data structures required to provide Real Time Assessments of Assets. SGPs loss of Major Portfolios alone convey this.
Wall Street is taking note of the Third Parties out there thinking outside of the box. When Firms come together with the Holy Grail Trifecta of Minority Owned, Women Owned or Veteran Owned — or any portion thereof — the parimutual benefit plays out across the Federal Contracting Arena.
The days of the Craigslist Contractor Hacks are soon to be gone for all intents and purposes. Regulations and in reality the ability to comprise a sentence grammatically correct ensures this. By proxy, the days of the Otherwise Unspecified Order Mills are coming to an end. This translates into an upside down position in Supply vs Demand.
You are generally able to spot the Otherwise Unspecified Order Mills by their lackluster badgering on Social Media and their Craigslist Recruitment. Make no mistake that within the Power Brokers discussions these people have already been identified as the sacrificial lambs for the Media.
So, where does your Firm play into this? I fielded my fourth call of the Holiday earlier this afternoon. With most of the National Order Mills to large to even bid upon Federal Contracts anymore, they are looking for solid Firms to enter into Agreements with. Oh, don’t act so surprised; don’t act so sanctimonious. If you believe Foreclosurepedia‘s Hand on the Pulse of the Industry does not include the Titans themselves then you probably do not belong here.
Foreclosurepedia brings to bear Consulting which encapsulates: Federal Contracting Experts, Social Media, Training and Certification, Website Presentation and Industry Partnership. The reality is that if you do not know if your Company has a NAICS and you are unwilling to establish everything necessary for such, Foreclosurepedia probably cannot help y0u.
The By Line for this is: The 20th Century called and it wants their Craigslist Hacks Back! The reality is that Financial Institutions are no longer simply looking at whether or not an Order Mill is capable of fudging Completion Ratio Reports. Financial Institutions want a Work Force which is homogenous and in compliance.
The free version is this: If you are going to succeed; If you are going to do more than pay your bills, you are going to Adapt — that is Improvise, Adapt and Overcome. Pop quiz sport: What side of the check writing do you want to be on come 2014? Drop us a line when you come to the Correct Conclusion!