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Roofing Credit Problems

 
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Old 10-02-2008, 09:42 AM   #1
 
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Roofing Credit Problems


Has anyone else run into problems with your customers wanting to hold on projects due to the uncertainty of our economy. I have had a few customers wanting to wait or atleast until they get a letter in writing from the bank that their loan was approved. I also have had projects cancelled due to the economy and credit concerns.
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Old 10-02-2008, 10:03 AM   #2
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Re: Roofing Credit Problems


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Originally Posted by roofpro350 View Post
Has anyone else run into problems with your customers wanting to hold on projects due to the uncertainty of our economy. I have had a few customers wanting to wait or atleast until they get a letter in writing from the bank that their loan was approved. I also have had projects cancelled due to the economy and credit concerns.
Have you been paying attention to the
news lately?

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Old 10-02-2008, 10:09 AM   #3
 
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Re: Roofing Credit Problems


That was the reason for my question!!!!!!!!!
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Old 10-02-2008, 09:47 PM   #4
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Re: Roofing Credit Problems


Hello,

Not to be an A** but you could tell the customer your quote is only good for X amount of days. If they wait your price could go up.

Something to think about.


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Old 10-03-2008, 05:41 AM   #5
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Re: Roofing Credit Problems


All the time. They know my prices go up, but that's life. I have 6-7 clients that do partial projects and some have lasted over 7 years. Makes for steady work.
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Old 10-04-2008, 08:33 AM   #6
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Re: Roofing Credit Problems


The greatest selling feature I have right now are rising costs. I.E, if you do it next year, it's probably going to cost more (the average bungalow around here has consistently cost about an extra $1000 every year for the last three or four years). This usually gets em signing the dotted line .
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Old 10-04-2008, 09:37 AM   #7
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Re: Roofing Credit Problems


Quote:
Originally Posted by roofpro350 View Post
Has anyone else run into problems with your customers wanting to hold on projects due to the uncertainty of our economy. I have had a few customers wanting to wait or atleast until they get a letter in writing from the bank that their loan was approved. I also have had projects cancelled due to the economy and credit concerns.
It's all over the news. Homeowners with established HELOCs are signing contracts with contractors, the work begins and the check they write to the contractor bounces due to the HELOC being frozen and the homeowner not knowing about it until they go to use it.

Quote:
Is Your HELOC In Danger Of Being Frozen?
If you have an open home equity line of credit you were counting on for renovations or other projects, you might want to read CNN Money's article about how lenders are freezing them around the country. The main triggers for HELOC freezing are credit score changes and a rapid drop in home value in your area.
Quote:
HELOC suspensions
Countrywide, the nation's largest mortgage lender, is suspending withdrawals from some borrowers' home equity lines of credit (known as HELOCs). The company said about 122,000 borrowers nationwide would be affected.

An internal memo is posted at the Mortgage Lender Implode-O-Meter. Perhaps the most interesting line:
This is not unique to Countrywide and our competitors have implemented similar initiatives with their HELOC customers as well.
Keep reading for details:
Home equity lines work like credit cards -- you can borrow money up to a certain limit. But unlike credit cards, the loans are backed by the value of the home. Home values are falling. Countrywide is concerned that it won't get its money back.
Quote:
HELOC Jeopardy


There have been a handful of incidents where lenders are “freezing” existing Home Equity Lines of Credit (HELOC). This means that if you have an available balance to draw on from your HELOC, your lender will not let you do so. This is happening in California and the Bay Area.
Tighten up your sh*t and keep on top of everything right now.
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Old 10-04-2008, 09:47 AM   #8
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Re: Roofing Credit Problems


Quote:
Originally Posted by Mike Finley View Post
It's all over the news. Homeowners with established HELOCs are signing contracts with contractors, the work begins and the check they write to the contractor bounces due to the HELOC being frozen and the homeowner not knowing about it until they go to use it.

Tighten up your sh*t and keep on top of everything right now.
That's what I was talking about.
It helps to be aware of one's environment,
and this has been pretty obvious for a
good while now.
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Old 10-05-2008, 07:21 PM   #9
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Re: Roofing Credit Problems


Thing are lookingbad here . I sold two jobs last Sat and 900am monday the HOs called to put a stop on the jobs . I dont no how we will work if people cant get cash from the bank ?
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Old 10-05-2008, 09:30 PM   #10
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Re: Roofing Credit Problems


Just a suggestion....I thought of it myself, but I can't get far enough ahead.

Why not become the bank yourself. Try to get enough out of them as a down payment and use it for materials. Do this on every other job. Have them, then, make payments to you every month. You could possibly have monthly income for years to come without even working. It would be tough for the first year or so, but would pay off in later.

Any thoughts on this??
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Old 10-06-2008, 03:43 AM   #11
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Re: Roofing Credit Problems


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Originally Posted by MJW View Post
Just a suggestion....I thought of it myself, but I can't get far enough ahead.

Why not become the bank yourself. Try to get enough out of them as a down payment and use it for materials. Do this on every other job. Have them, then, make payments to you every month. You could possibly have monthly income for years to come without even working. It would be tough for the first year or so, but would pay off in later.

Any thoughts on this??


Thats a great freekin ideal in my book. But then i'm not in the business.

Also don't be suprised if your line of credit decreases on your credit cards. It doesn't matter if you pay on time or not. In the event that happens your fica score will change no fault of your own and then your car insurance will go up. A car insurance preminum is based on several factors one of which is fica score.

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