PK Management (PKMG), a Miami based Property Preservation Firm, was relatively unknown until about this time last year amongst Contractors whom read Foreclosurepedia. Pedro Kolychkine, owner of PKMG put the wheels into motion for PKMG around 2005. A simple Google Search of PK Management and Foreclosurepedia will cover what we have written along with our Podcasts over on the Foreclosurepedia Radio Network. This Article, though, is not so much about whom PK Management is, but rather how they have performed upon the US Department of Housing and Urban Development‘s Marketing and Management (M&M) 3.6 Contract.
PKMG is no stranger to US Government Contracting. Even before they were awarded the HUD M&M 3.6 Contract, PKMG was already performing services upon some HUD Contracts, US Environmental Protection Agency (EPA), the Federal Deposit Insurance Corporation (FDIC) and the United States Department of Agriculture (USDA). Working with Government Sponsored Enterprises (GSE) has been the work horse of PKMG for over a decade.
When I originally reached out to Craig Karnes, HUDs Director of M&M, I had identified several things I was concerned about as were other Contractors. First, the payment cycles approaching 70 days I felt would be both problematic and in direct contravention to President Obama’s Office of Management and Budget (OMB) Memorandum 12-16 issued by Acting Director Jeffrey D. Zients. The second and larger issue, I felt, was the dramatic drop in pay by way of comparison of one of the original HUD M&M 3.0 Contract Holders, A2Z Field Services. Karnes was gracious enough to facilitate a call between PK Management and myself.
That was a year ago. By in large, since we first reported on PK Management, there has been a stabilization for want of better words. I recently had the opportunity to follow up on my biggest concern, Time To Pay, and was pleasantly surprised that Pay is generally transmitted around the 30th of each month.
The next thing that I looked at was the maintenance of the HUD Properties. What many people do not know was that I played a roll in the initial intelligence gathering pertaining to three of the HUD &M 3.0 Prime Vendors and their Inventory migrating over into HUD M&M 3.6. With that said early on, many of the Rural Inventories within East Tennessee looked to be taking a hit; the reality was that Tennessee and Kentucky were in dire straights. Today, grass heights and exterior appearances looked on par with what we were doing for A2Z Field Services. So, that is a good thing. A couple of Inspectors have opined that there is a zero tolerance for safety hits and debris which is also a good thing as that is what the M&M is about; the M&M was never to be about screwing a Contractor for a cobweb.
Another tell tale sign that PK Management seems to be getting control of its Rural East Tennessee Portfolio is the fact that I have only had two Complaints from Contractors. Both have been settled amicably and were more dealing with Order Mills PK Management hired. When juxtaposed with the hundreds of Complaints I deal with pertaining to the Industry as a whole, that is a damn good thing.
So, PK Management’s first year out here seems to be better than I had anticipated. I think it is important to make points like this. FULL DISCLOSURE: I do not work for PK Management nor has PK Management provided any material for my unscientific review of them.
The bigger question is whether or not I would recommend PK Management for Contractors. I am up in the air about that because of one critical issue: Pay. If you are a Contractor whom has lower overhead like me — we own a farm and our own equipment — I would say yes. That is the reality, too, that this Industry was never to be a welfare line. Successful Contractors generally own their homes and equipment because they paid their dues.
If you have a $1000 mortgage or rent, 5 cell phones, eat out every day and don’t pack a lunch because it isn’t cool — no I would not recommend PK Management. The reality is that the Property Preservation Industry is beginning to implode. The huge profit margins on even the HUD M&M for Contractors are no longer there. It is not a debate.
20 Initials = around $4400 and 20 refreshes = around $1000. These are ball park numbers. So, that’s around $5500 a month. You won’t get rich; you will make a living. Do your work right; do it in a systematic way, and you are able to come out good. Have a ton of overhead and Order Mill out your work and you will fail.
Here is the reality: PK Management ponied up funds and infrastructure and that is why they were Awarded the M&M 3.6 and other Contracts. On the one hand, I can hate on that because I am jealous. While I am not intimating that my discussions about PK Management were based upon that, deep inside all of us are that way. My issues dealt more with the arcane; the legalese, which is lost upon most Contractors.
If the pricing is stable; if PK Management does not apply Draconian Charge Backs, it is probably the the new norm. I have spoken personally to Pedro Kolychkine, the owner and CEO; Albert Martinez, the COO; and Les Sternberg their current Compliance Manager (used to be Director of Vendor Management). Here is what I can say about them objectively: Albert and Les are consummate professionals. That doesn’t mean I liked or disliked what they had to say, that means I RESPECT what they had to say. The sign of a true business person is the ability to agree to disagree. Pedro and I only had one encounter, but I did not detect any malcontent.
I have no knowledge of their inner mechanisms. I never personally performed any work for them; however, if Les was in charge of putting together the Departments I will presume it is cut and dry. That’s what I like: cut and dry. I do not like grey area. Give me a task and tell me what and when it pays.
PK Management, from the Tennessee Portfolio perspective, would seem to get a clean bill of health in my humble opinion.