Foreclosure Cleanup Business — How to Avoid Getting Burned On Invoices for Jobs Completed

Foreclosure Cleanup Business — How to Avoid Getting Burned On Invoices for Jobs Completed

Article by Cassandra Black

Foreclosure Cleanup Business — How to Avoid Getting Burned On Invoices for Jobs Completed

One major hurdle a smaller foreclosure clean-up company may have to overcome, if they are not prepared, is unpaid invoices from contractors who owe them for work performed. Here’s the gist of how a smaller company can become victim to unpaid invoices.

The foreclosure cleaning industry is still a relatively new business sector that has come alive within the last three years. Cleaning foreclosures, or REO trashout, involves the tidying up, clearing out and maintenance of homes that have been foreclosed upon. Duties involve everything from removing debris from properties, to minor repairs, inspections, securing of homes by boarding windows and doors and changing locks, to initial and ongoing lawn maintenance, roof repair, and more.

Property Preservation Companies vs. Foreclosure Clean-up Companies

Though larger property preservation companies, who often work directly with the United States Department of Housing and Urban Development (HUD), have been around for years, many of the smaller, less formal foreclosure trash out businesses are still in their infancy.

These larger property preservation companies get the majority of their work from HUD, via the organization’s Management and Marketing Contractors (“M&M Contractors”), who maintain and sell HUD-owned homes.

Property preservation companies seek out foreclosure clean up companies to assist them with clearing out, securing and maintaining these HUD homes throughout the nation. The number of homes that trickle down from HUD are in the thousands, especially in the turbulent, foreclosure-ridden real estate market today.

Hurdle for Smaller Foreclosure Trashout Businesses

One major hurdle a smaller foreclosure clean-up company may have to overcome, if they are not prepared, is unpaid invoices from contractors who owe them for work performed. Here’s the gist of how a smaller company can become victim to unpaid invoices:

A larger company will contact a smaller company and ask them to service a number of homes. The smaller company will perform the foreclosure cleaning jobs under terms that may state they will get paid within, generally 30, 60, 90, or even 120 days. In many scenarios, the larger company outsourcing the work to the smaller company will be waiting to get paid from a larger organization, bank, or other financial institution.

In a scenario gone bad, the smaller company will not get paid timely for the jobs completed under the work order request(s). And that smaller, often new business, will have expended time, energy and monies to complete the foreclosure cleaning work. They will have expended energy, time and money on supplies and labor. The work will be complete, but the small business will not have been paid.

More than one job on the books like this can cripple a smaller company’s cash flow and force them to close their doors before they are even solidly open.

Ways to Protect Your Foreclosure Trashout Business

But there are ways foreclosure trash out businesses can protect themselves. If you are a smaller company, here are some tips to keep your small business afloat as you vie for subcontracting opportunities with larger companies:

1. Negotiate, negotiate, negotiate. Payment terms are not set in stone. If a company’s policy on getting paid does not work for your business, don’t agree to it. Simple. You may lose that client, but you can’t work for free or wait forever to get paid. A few clients like this and you’ll be out of business before you know it.

2. Get everything in writing. If you have a “verbal” agreement with a company, you are taking a big risk in working for free. Document your terms in writing. This documentation can be via a formal contract or via a handwritten agreement that you prepare onsite. If a company asks you to sign their agreement, don’t be afraid to scribble in terms that suit you and scratch out and initial terms that don’t. Sure, you can sign their agreement all day long, but read every word and don’t be shy about adding and subtracting items so you are not taken advantage of.

Though most real estate professionals are just that, professionals, you have some piranhas out there lurking about, waiting to take advantage of unsuspecting new business owners.

3. Implement a late fee. If you agree to a company’s terms as it relates to how long you’ll wait to get paid (30, 60, 90 plus days), implement a hefty late fee and stick to it if the client is even one day late. Remember, you are growing a business that you want to be around for long time. So take a strong stance when it comes to getting your money.

How you begin is directly related to how companies will treat you when it comes to paying invoices. So be clear, firm, and if a company doesn’t pay you timely, be LOUD (translation: keep calling until you’re paid). Squeaky wheel gets the oil. Remember, get the late fee in writing at the beginning — don’t try to implement one after the fact — and stick to it. Don’t be wishy-washy on your company policy when it comes to your money.

NOTE: And there’s no rule stating you have to wait to get paid. Your terms can be the following: Payment Due Upon Job Completion.

4. Check the references of the company seeking to hire you. Yes; that’s right. You check the larger company’s references. Ask the primary contractor or larger property preservation company for the contact information of no less than three subcontractors with whom they’ve worked within the last six months. You call these subs yourself to see if they were paid timely by this company you’re considering working with. If the larger company questions you about this, let them know it’s your “company policy” to check references of new clients before you take on jobs.

5. Factor your invoices. Factoring is simply the selling of your company’s invoices for a percentage of the total due you so you don’t have to wait to get paid. If a larger contractor owes you $ 6,200, when you factor, you will sell that $ 6,200 invoice to a finance company (factor) for a certain percentage of the amount due you. The factor will pay you the $ 6,200 within a matter of days, minus their fee (a percentage of the invoice).

When you sign on with a factor, the credit of the larger contractors with whom you’re considering doing business will be checked; not your business’ credit. This is yet another reason you want to be sure you’re working with financially solid primary contractors. If you can’t factor invoices due you because of a larger company’s credit, your business will be greatly disadvantaged when it comes to cash flow.

For More Information

The above are some simple tips and steps to take to ensure you don’t get burned on invoices when you start your business. Find more information on factoring in How to Start a Foreclosure Cleanup Business (Stone Cottage Books). Much success to you with your foreclosure cleanup business.

Cassandra Black CEO of Foreclosure Cleanup, LLC, Atlanta, GA, an outsource and consulting firm, and author of several real estate industry publications. Visit Stone Cottage Books for more information.

Also visit the Foreclosure Cleanup Blog for Jobs & Contracts in the Property Preservation and Foreclosure Cleanup Industry.








Question by mkarias1: Can an employee request an employment contract? If so, can the employee’s attorney produce one?
My friend recently was offered a job at another firm (Company B). She has not told her current employer (Company A). When she does, she believes that her current employer will make a counteroffer as she is a valuable employee. She will ask for a promotion and pay raise but wants protection.
She is considering making Company A give her an employment contract for 1 year which guarantees her job (she cannot be fired or laid off) and protects her new salary (company has cut salaries for all employees).
I think this is a great idea but is it? Who normally puts together the contract? Should she let her employer produce one or have her attorney? Any advantages or disadvantages to this idea? thanks

Best answer:

Answer by brenda
I would hold the door open for her as she walks out if she did that to me.
She could ask that the pay is put in writing but in this economy when other employees are getting pay cut and laid off, she most likely will not get that. As for not being fired what if she just stops working her job well cause she has a no firing deal I can not think of any company who would sign that.

Give your answer to this question below!

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Posted by Mariana's Blog - January 31, 2012 at 4:41 am

Categories: Contract Jobs Disadvantages   Tags: , , , , , , , ,

What Kinds of CAD Jobs Are There?

What Kinds of CAD Jobs Are There?

Over the last decade, the Department of Labor has reported slower than normal growth in a variety of different fields in which CAD jobs used to flourish. The most noted area is drafting. While it was once done by a full time employee, the industry norm is now to have it done primarily by interns. Outsourcing has also been a concern in terms of slowing the job growth in several CAD fields. If you are trying to find out what kinds of jobs there are, then there are several different ways that you can approach this issue. Here is a quick look at some of the different approaches and how they will affect you and your findings.

By Platform

Currently, one of the most commonly used descriptions of a CAD job type is not what industry it is in, but rather what type of software is being used. This is because once you are well versed with a certain platform, transitioning from one industry to the next is fairly easy.

The trend across a variety of job search sites, even CAD specific sites, seems to note that AutoCAD, SolidWorkds, CNC, CATIA, and MicroStation tend to be the most sought after. AutoCAD appears to consistently be the top platform being used, and not by a small margin On many sites, the AutoCAD platform will have up to 10 times as many openings as the next closest platform.

By Industry/Classification

Another way to determine what types of CAD jobs there are is to look at the industry or classification of each open position. There are a wide variety of different industries that will need employees with in-depth CAD skills. The most popular industries tend to be civil engineering, engineering (general), manufacturing/operations, shape design & styling, and mechanical design.

While this is not the limit of potential industries, these classifications seem to consistently be the most popular. Of all of these primary options, general engineering tends to carry the most job openings.

By Job Type

A final way to determine what kinds of CAD jobs there are is not to look at what you will actually doing, but rather what “type” of job it is. In most cases, CAD jobs will carry a full-time position, however part-time and freelancing is becoming more popular. Along the lines of a full-time employee, using limited contracts has become popular as well. That means that while the position is full-time, it may only last 6 months or year. With the increased number of communication methods via internet, especially in regards to conferencing, independent contractors or freelancers are also an option that is becoming more popular.

It can be difficult to answer the question, “What type of CAD jobs are there”, because there are so many different variables that come into play. However, recently there are 3 primary criteria that are currently being used to describe the different types of jobs available. These criteria are what platform is being used, what industry it is in, and what type of job it is. While there are a wide range of additional factors that can be taken into consideration, these 3 seem to be most prevalent.

Find engineering and design Cad jobs near you

Question by alexandriahawthorne: What kind of jobs could an ex-felon get?
My bf gets out of prison in July and we’re trying to figure out what options he has for a job. I was thinking he could go to college for a certain trade or maybe vocational school. The only thing with that is dental assistant or medical assistant require background checks. What jobs don’t require a background check, are there any programs that could help, and should he just go to school until the felon is off his record? I think it takes 10 years for a felony to be taken off of a record in California.

Best answer:

Answer by Howard L
What skills does he have and how good is he at them? As an unskilled laborer the best he could probably hope for is physically demanding jobs that most people wouldn’t take.

A felony conviction never goes off your record if you served prison time. That only applies to people who received a sentence of probation and who successfully completed it.

What do you think? Answer below!

1 comment - What do you think?
Posted by Mariana's Blog - January 30, 2012 at 3:08 pm

Categories: What Kind Of Jobs   Tags: , ,

The Advantages and Disadvantages of Freelancers

The Advantages and Disadvantages of Freelancers

The disadvantages mirror the advantages in that; the compiled E-book doesn’t reflect you, or your knowledge. You may have saved some time, but the E-book may end up looking nothing like what you were hoping for, and the freelancer may still expect payment! I have been burned, and know several people who have also been burned, by freelancers who behaved less than scrupulously so be on your guard for any suspicious behavior. Specifically, if a freelancer asks to take the conversation off of the work brokers’ sites, watch out. Make sure all of your communications are based on the chat log on the site, for record keeping reasons.

Always ask for a portfolio on the freelancer. Most will post their work samples to a website so all you have to do is visit the site to see what they have done. If this is the case, you know you are dealing with a real professional.

Not all will do this and you shouldn’t discount any that do not. It is simply a very easy way to showcase their work, and allow you to see their work examples.

I would recommend hiring contractors from the country you are targeting for your products. In other words, even in the U.S. alone, there are many dialectic phrases and words that are only used in parts of the country. Make sure that you do not hire a person from Alabama to write an E-book you are planning to market in New York City. Although much of the language may be the same there could be some slight differences that you don’t catch that your readers may. An even better example is the English language.

I have had associate who have contracted, for cost reasons, Indian writers to write an E-book that is targeted for American markets.

Even though English is prominent in both countries, it really isn’t the same kind of English. The people of India speak The Queen’s English, while us Americans, we speak American English. Many of the phrases and vernacular are substantially different and may cause problems if different from your target audience.

When you contract out your E-book production keep in mind the going rate for E-book development is not the going rate. Simply because you “heard” of people having freelancers write E-books for $ 10 doesn’t mean you are going to get anywhere near that good of a deal. If you do, you may get what you pay for. Stick with that old adage and plan on paying about 2-3 dollars per page. That way you can expect that the freelancer will have some motivation for completing your E-book rapidly and will be happy to do it.

The remedy for a freelancer, who doesn’t do a satisfactory job, may not be as appealing to you as the broker site makes it sound. For instance, I contracted a coder to construct a fitness website for me. The coder was from The Netherlands and spoke fluent English. No problems there. The estimated cost for the website was $ 5000 and I deposited $ 1200 for the first phase.

He proceeded to construct my website from an HTML template which wasn’t agreed to. I pointed it out and asked for my money back, because any 6th grader nowadays could do that. He didn’t agree and we went to arbitration. After a few weeks of arbitration I agreed to pay the coder half of the deposit I put down with them and we went our separate ways. Him with my $ 600, and me without the website I contracted for. Learn from my mistakes and make sure maintain an air of accountability with your contractors.

Gavin J. King is the creator of get paid for writing ebooks and creates e-books designed to assist internet marketers increase their success. With a broad range of experience and knowledge to draw from his products and articles are helpful and enjoyable. Gavin J. King likes writing articles about dogpile pay per click and other web-based, worthwhile pursuits.

Question by Jordan Mardan: What myths about affirmative action do you believe?
Myth 1: The only way to create a color-blind society is to adopt color-blind policies.

Although this statement sounds intuitively plausible, the reality is that color-blind policies often put racial minorities at a disadvantage. For instance, all else being equal, color-blind seniority systems tend to protect White workers against job layoffs, because senior employees are usually White because of historical discrimination. Likewise, color-blind college admissions favor White students because of their earlier educational advantages. Unless preexisting inequities are corrected or otherwise taken into account, color-blind policies do not correct racial injustice — they reinforce it.

Myth 2: Affirmative action has not succeeded in increasing female and minority representation.

Several studies have documented important gains in racial and gender equality as a direct result of affirmative action. For example, according to a report from the U.S. Labor Department, affirmative action has helped 5 million minority members and 6 million White and minority women move up in the workforce. Likewise, a study sponsored by the Office of Federal Contract Compliance Programs showed that federal contractors (who were required to adopt affirmative action goals) added Black and White female officials and managers at twice the rate of non-contractors. There have also been a number of well-publicized cases in which large companies (e.g., AT&T, IBM, Sears Roebuck) increased minority employment as a result of adopting affirmative action policies.

Myth 3: Affirmative action may have been necessary 30 years ago, but the playing field is fairly level today.

Despite the progress that has been made, the playing field is far from level. Women continue to earn 76 cents for every male dollar. Black people continue to have twice the unemployment rate of White people, largely due to discrimination, according to data gathered by the EEOC.

Myth 4: The public doesn’t support affirmative action anymore.

Public opinion polls suggest that the majority of Americans support affirmative action, especially when the polls avoid an all-or-none choice between affirmative action as it currently exists and no affirmative action whatsoever. For example, a Time/CNN poll found that 80% of the public felt “affirmative action programs for minorities and white women should be continued at some level.” What the public opposes are quotas, set-asides, and “reverse discrimination.” For instance, when the same poll asked people whether they favored programs “requiring businesses to hire a specific number or quota of minorities and women,” 63% opposed such a plan. As these results indicate, most members of the public oppose racial preferences that violate notions of procedural justice — they do not oppose affirmative action.

Myth 5: A large percentage of White workers will lose out if affirmative action is continued.

Government statistics do not support this myth. According to the U.S. Commerce Department, there are 1.3 million unemployed Black civilians and 112 million employed White civilians (U.S. Bureau of the Census, 2000). Thus, even if every unemployed Black worker in the United States were to displace a White worker, only 1% of Whites would be affected. Furthermore, affirmative action pertains only to job-qualified applicants, so the actual percentage of affected Whites would be a fraction of 1%. The main sources of job loss among White workers have to do with factory relocations and labor contracting outside the United States, computerization and automation, and corporate downsizing. Two, are all Whites qualified for the jobs they hold?! No.

Myth 6: If Jewish people and Asian Americans can rapidly advance economically, African Americans should be able to do the same.

This comparison ignores the unique history of discrimination against Black people in America. As historian Roger Wilkins has pointed out, Blacks have a 375-year history on this continent: 245 involving slavery, 100 involving legalized discrimination, and only 30 involving anything else. Jews and Asians, on the other hand, are populations that immigrated to North America and included doctors, lawyers, professors, and entrepreneurs among their ranks. Moreover, European Jews are able to function as part of the White majority. To expect Blacks to show the same upward mobility as Jews and Asians is to deny the historical and social reality that Black people face.

Myth 7: You can’t cure discrimination with discrimination.

The problem with this myth is that it uses the same word — discrimination — to describe two very different things. Job discrimination is grounded in prejudice and exclusion, whereas affirmative action is an effort to overcome prejudicial treatment through inclusion. The most effective way to cure society of exclusionary practices is to make special efforts at inclusion, which is exactly what affirmative action does. The logic of affirmative

Best answer:

Answer by Mimas2009
The myth that Affirmative Action is not racist (it is racist)
and the myth that it is fair (it is not).

Sorry, but I do not believe your arguments, not for one bloody second.

Add your own answer in the comments!

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Posted by Mariana's Blog - January 30, 2012 at 3:02 pm

Categories: Contract Jobs Disadvantages   Tags: , ,

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