After a few months away from the active rain community, I have returned. Due to my daughter receiving her 2nd double lung transplant things have been crazy. We are now 6 months out and things are going well. Trying to get business that pays in today's market is something else, but the most important issue of 2008 has passed.
With more and more REO's becoming available the banks are beginning to have some issues in getting reimbursements out in under 30 days. In one of my earlier posts I cautioned on dreams becoming nightmares and a few of my friends that are in the St. Louis, MO. market that are now doing REO's are really having some issues. One fellow I know has almost 8k out in repairs, clean outs,etc to contractors that is up to 60 days waiting on reimbursements.
A while back I started all of my contractors on direct billing to the bank. Meaning that I have the bank approve all payments direct to the contractor and then have the contractor bill direct in the banks name. I still handle all the paperwork but when the bank is slow in issuing reimbursements the contractor has to make the call. I never ever reach into my own pocket to pay no matter how minor. With Banks selling to new Banks or even being taken over by another Bank, I don't want my money trying to find me.
So, hire contractors who know going in that the bank takes at least 30 days to pay with most at 45 days and that they will be getting paid directly from the bank. It will save you a lot of grief. And if your current contractor won't do it, there are 5 more out there that will.
By the way I've been working on a new website, check it out at http://www.theroyalmove.com and let us know what you think.
Frank J. Helderle
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