Buying an existing business

transistor

transistor

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Sep 30, 2007
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We are EXPERTS in understanding the 3 way relationship between the homeowner and the insurance company insuring that our profit margins are the highest in the industry. Obviously we will not provide details here, but suffice it to say we have found a void or hole in the system that we have been able to benefit and profit from enormously
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I know a guy with a roofing company, he worked at one for about a week and realized he could do it on his own and make much more money. He started with like $7k and made $15k his first month. Just hire somebody to handle the insurance side, get some commission based sales reps to sell or wait for a storm that causes widespread roofing damage, then just grab a bunch of day laborers who have worked in roofing before and you're ready to go. Easier said then done of course, but you get the idea.

As for the ATM business, my friend looked into that but most of those are fake lead gens used to sell clickbank type junk. If you have your own business you can make some decent side revenue with your own ATM machine but if you're acting as a broker and trying to lease your machines on property you don't own you're going to be facing some fierce competition. I don't know about other areas but around here it's very rare to see a non-bank branded ATM machines except for inside of independent gas stations, liqueur stores, payday/check cashing stores, or pawn shops but if you look at the businesses that are for sale in those categories they all mention making money off the ATM machines so they probably have a direct deal with better terms and payouts than any soccer mom turned ATM leasing agent could offer.
 
1st business - "We are EXPERTS in understanding the 3 way relationship between the homeowner and the insurance company insuring that our profit margins are the highest in the industry. Obviously we will not provide details here, but suffice it to say we have found a void or hole in the system that we have been able to benefit and profit from enormously, as seen above in our financial figures"

Sure great bargain at $1mil+ if you are into insurance fraud... Either that or this "legitimate hole" they found yet cannot speak about, is closing very soon.


Business 2 - That's $117k gross income; you have to pay for phone lines or wireless at each location ($50-100/month), then you have to pay a percentage of your income to each store per month, and finally you have to STOCK the machines with YOUR OWN MONEY. (you also better become licensed to carry a gun, since you are going to be traveling around town with large sums of money to stock all of these machines). So really, after all this is said and done, you are realistically looking at $40,000 gross income per month max. That is assuming none of the machines break down and you don't have to pay $2000- $3000 for a new machine and or $300-500 in repairs to have a technician come out,ect.
 
imbo55 said:
Business 2 - That's $117k gross income; you have to pay for phone lines or wireless at each location ($50-100/month), then you have to pay a percentage of your income to each store per month, and finally you have to STOCK the machines with YOUR OWN MONEY. (you also better become licensed to carry a gun, since you are going to be traveling around town with large sums of money to stock all of these machines). So really, after all this is said and done, you are realistically looking at $40,000 gross income per month max. That is assuming none of the machines break down and you don't have to pay $2000- $3000 for a new machine and or $300-500 in repairs to have a technician come out,ect.
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The roofing company is just a storm repair contractor, they have no "loop" hole. They've just learned how to professionally negotiate insurance claims to maximize the claim value without committing fraud. Nothing special there however, any one thinking they are going to just jump into the insurance restoration game and make a killing has another thing coming. You can't learn in a year everything you need to know about handling insurance claims, meeting with adjusters, understanding policy language, claims handling practices, dealing with mortgage companies loss payee departments, and a whole slue of other things.

Is it a profitable business "insurance restoration" your damn right! Profit margins are substantially higher "IF" you know what your doing, if you don't you can loose your shirt, shoes, and pants.
 
dcodex said:
The roofing company is just a storm repair contractor, they have no "loop" hole. They've just learned how to professionally negotiate insurance claims to maximize the claim value without committing fraud. Nothing special there however, any one thinking they are going to just jump into the insurance restoration game and make a killing has another thing coming. You can't learn in a year everything you need to know about handling insurance claims, meeting with adjusters, understanding policy language, claims handling practices, dealing with mortgage companies loss payee departments, and a whole slue of other things.

Is it a profitable business "insurance restoration" your damn right! Profit margins are substantially higher "IF" you know what your doing, if you don't you can loose your shirt, shoes, and pants.
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This. I've done sales for roofing contractors and insurance company inspectors come and diagnose the roof damage before they will approve paying for it, to eliminate opportunities for fraud. The roofing contractor can't just send a bill to the insurance company. If the homeowner has let the damage go too far, the insurance co. won't pay for it. If the estimate from the contractors is too outlandish, the insurance company won't approve it.

In their business listing it says:

Growth/Expansion: In 2009-2010 we cash flowed over $1.3MM on over $8MM in gross sales. WE need to get back to this level in 2013. Over the years we have developed many tools in our "special" presentation to the insurance company on why they must pay our prices. Which in almost all cases are substantially above industry standard.
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Back in 2009-2010 the insurance companies were shelling out more money because they weren't looking closely enough at all the claims before approving them. If their model is so unique and awesome compared to other roofing companies, why hasn't their gross been 8 million+ a year every year since 2009-2010? The part about how they're gonna convince the insurance companies with their "special presentation" why they must pay their prices is a joke to say the least. They use the word "special" 5 times in the listing, I think that should speak for itself to intelligent buyers.
 
Well its obvious they've used the works special a little to frequently but I suspect the special secret ninja tools they are referring too is the latest technology that roofer can use to integrate services like Eaglview measurements and Xactimate insurance claim estimating software that produces a scope of loss and a repair estimate without having to climb and measure the roof. There's also newer software applications that are available but I'm under an buddy NDA agreement with my client so can't mention it publicly.

The last two storm seasons, (2011-2012) have been rather light so many insurance restoration contractors struggled to find suitable storms if they had a larger organization.

The numbers stated for the business aren't that good anyways.

Why did you leave the sales position? Good salesmen in this field can easily earn 200k + in a single storm season which is typically May-October.

Also who's fault is it that the insurance companies supposedly paid out more money due to poor claim handling practices?

eVandals said:
This. I've done sales for roofing contractors and insurance company inspectors come and diagnose the roof damage before they will approve paying for it, to eliminate opportunities for fraud. The roofing contractor can't just send a bill to the insurance company. If the homeowner has let the damage go too far, the insurance co. won't pay for it. If the estimate from the contractors is too outlandish, the insurance company won't approve it.

In their business listing it says:

Back in 2009-2010 the insurance companies were shelling out more money because they weren't looking closely enough at all the claims before approving them. If their model is so unique and awesome compared to other roofing companies, why hasn't their gross been 8 million+ a year every year since 2009-2010? The part about how they're gonna convince the insurance companies with their "special presentation" why they must pay their prices is a joke to say the least. They use the word "special" 5 times in the listing, I think that should speak for itself to intelligent buyers.
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