Anyone doing business with this group. If so, have you had any problems with getting reimbursed for expenses.
You need to be a member of REO Pro Network to add comments!
This reply was deleted.
Anyone doing business with this group. If so, have you had any problems with getting reimbursed for expenses.
You need to be a member of REO Pro Network to add comments!
Replies
My partner are currently working over 20 files in various stages with Dakota. Reimbursements seem to vary for us. It depends on the asset manager and the amount. The larger amounts seem to take much longer. Currently, we have a CFK we have been waiting on for a couple months. Simple reimbursements for property preservation come quickly for the most part. It seems they may have hired a bunch of new asset managers who are inexperienced. If you are dealing with one of the seasoned managers they are a good company to work with.
I do agree it is a nuisance to have to get repair bids for EVERY property. The majority of the properties aren't worth putting the time and money in. It's hard to get contractors to keep taking time to bid jobs; we both know it's going to be sold As-is. I think it's better to sell it fast, cash, As-is and move on to the next asset, let the investors take the risk and make their money fixing it up. We have yet to have to pay for major repairs and be reimbursed. The last time they decided to fix one up, we requested a draw. They paid half upfront and then the other half upon completion, with a detailed photo addendum of course (lol)! The problem we ran into is that I'm not sure if that contractor will work with us again because it took over 45 days for reimbursement.
In my opinion they are a good company to work for. I think REO in general has it's associated headaches, reimbursement is just one of them!
What company or group are you talking about?
I have a different experience with Dakota, both for billing and also as a caution - red light item.
I have had two properties with them in mothballs for quite a while - almost a year for one property. It seemed that neither property was a priority to them. My reimbursements for utilities have been very slow, 90 days and over. I have completed inspections, done cash for keys (which they paid up front), and more time-consuming things all in good faith.
Two weeks ago I was asked to get renovation bids for the properties, which I thought was progress and movement, at last. One bid was approved, and I advised the contractor. The job approved is for a little over $11k. I emailed my contact at Dakota and also asked for the direct payment information since this is a capital repair and it exceeds my company allowable.
Today I was preparing the bid summary sheet for the next property, and the lowest bid amount is for a little over $33k. I went to upload the summary and I found that I was locked out of my Dakota properties in res.net.
It turns out that the properties were reassigned because I indicated I would not be able to pay out of pocket $11k on capital repairs. I spoke with the asset manager for both properties and she was very nice, but she stated that some agents are fronting hundreds of thousands for capital repair bids, and that they expect agents to pay for repairs to their properties up front and then wait for reimbursement.
I'm not too proud to say that there's no way I can front $44,000 for repairs to someone else's properties and then wait for reimbursement. Whoever can, more power to you, I have other things to do with my money.
When I thanked the asset manager for the opportunity to work with them, and told her I would be turning off utilities, etc. so the transition to their new agent would be nice and clean, she said she would "try to get (you) paid for those". That doesn't exactly make me feel confident.
Bottom line: Expect 90/120 days for reimbursements, and if they ask for renovation repairs they are expecting you to pay for those repairs directly and wait for reimbursement. If you don't have a lot of liquid cash to tie up, or don't want to tie up your liquidity in that way, I recommend you step away from them.
I agree w/ you 100%. I worked Dakota for 2 years spent a $157,000 and only sold 5 properties. After I reviewed my year end numbers I decided to give back 12 properties. Their client wants construction bids on every single property and then they price them way too high. I tracked all the listings we sent back and none of the prices have been reduced and they are all still active..... What a waste of time. If you want to make money in the REO this is not the company to work for.
I have been trying to get setup with this company; do you have a good contact email for an asset manager? Please advise, thanks! Have a great rest of the summer selling season!!
I have worked with Dakota Asset in the past year and currently have a listing with them. Good company to work with.
I work for them. They have always paid timely. You have to enter bills via LPS and Res.net in order to get reimburse. They pay via ARC. Good company.
Thanks Charles. They do seem like a good company and no problems thus far. I'm out pocket a good bit and over 45 days. Writing more checks now and getting in deeper so I really was trying to ease my own mind.
When asking about a new or newly inquired about company, please tell us what they have asked you to do, what their expressed reimbursement procedures are, etc.
I do not have any experience with this company.