NACHI Factoring: Instant cash when you do an inspection.

I do not need it for my home inspection business, but I could really use it for my dead beat tenants in my appartments. Last year I had four that I had to go to court and get a judgemnet to pay back rents and damages. My current collection company gets 50% of what they collect. but they do get it and half is better than none.

Will, are you sure FREA requires payment before the inspection?
I know they require a signed agreement before and they need your current agreement each year.

Like I said earlier, it’s a great marketing tool - to advertise that I will wait till closing on 1031 exchanges. and, we’ve got gobs of them here.
So, I add a few bucks on top - so what?

Russ

Russ, if that works for you, then go for it.

I have no idea what a 1031 exchange is, so it’s lost on me. I was just trying to comprehend why someone would be willing to forego (or upcharge) $50 when Paypal is so easy and immediate.

If it invoves being paid as a closing cost, I guess I can see that. I am not that patient.

OK, 1031 in a nutshell:

You live in PA, & can sell your house for $550k.
You want to move to Knoxville, Tn, and can buy 2.5 houses for that.If you sell your house & buy there, you get hit with taxes.

Instead - and this means good timing, all around - the Title Co holds onto your 550 and transfers it to the sellers in TN. You never “see” or hold the $. Meanwhile, you have a new primary residence, an income home, and 1/2 of another income home, paid for. No cash, no taxes. Everybody (incl HI) gets paid at closing.

We see a lot of Calif to Idaho transactions like that, here.
I’m sure there are more details to add, but that’s the RD Condensed Book Version!

Russ

First of all, it is not a collection service, it is a factoring service. A big difference. By your posts, some of you appear to think I was talking about a collection service.

For those of you who espouse the “no money, no inspection” philosophy… this is perfect for you as there would never be a situation where there would be “no money.” Instead of “no inspection,” you could do every one of them and get paid instantly.

I would go as far as saying this would most benefit those members who say “no money, no inspection.”

Anything in the state of Illinois that is over $300.00 bucks is considered theft and can be turned over to the authorites

That still may not put $255 in your pocket, Joe . .

Fortunately, in 3 years, I only had 1 bad check.

I sold the report at a discount to the Seller - it was the path of least resistance . . .

Russ

Again, we are not talking about a collection service. This is a factoring service for members who insist on getting paid on or before the inspection. A factoring service would permit them to work for any and every “No payment, No Inspection” client, and get paid instantly, instead of turning down that work.

Ok…I guess if you want to bend the actual meaning of “no money, no inspection” to suit your needs, you can.

I think that there probably are not a lot of cases where a guy had to turn down the inspection for lack of funds, but I am sure it has happened. In these cases, Paypal or wireless credit card acceptance would have accomplished the same goal (performing the inspection and being paid) at a far lower pertentage of loss (15% is a lot).

Both systems allow you to accept a debit or credit card, so there is no excuse for not paying on the spot. This results in instant payment and a much greater profit yield (3% fees compared to %15).

Also, what is a “factoring service” as opposed to a collection service. If the onus is still on us to chase down the payment, then this is just a high interest, short term loan.

In the case where you get paid at closing, specifically in the transaction you desctibe because of the tax implications, I could understand the usefulness of this.

As a method of payment on a general basis, I can only see it being better than accepting credit cards (via any method) in a complete emergency and total breakdown of all other processes. Good planning and communication prevents the need for last minute financial problems.

I wasn’t trying to be overly blunt when I said ‘no money-no inspection’.
Yes that kind of philosophy can cost an inspector *some *work. I work on C.O.D. which is my personal business decision. I process credit cards on my cell phone for the “absentees” and the fee is almost nothing.

Erol Kartal
ProInspect

That’s what I was getting at, Erol. Well said.