3/5/2010 9:09:00 AM Midwest Metro rises with foreclosure trends
Charlie and Anne Nelson are continuing the growth trends of Midwest Metro, which they bought in 2008. The company works on foreclosed properties.
Here to Serve Inc. dba Midwest Metro
Address: 3777 N. State Highway H, Springfield, MO 65803 Top Executive: Anne Nelson, president; Charles Nelson, vice president 2009 Revenues: $4.8 million 2007–09 Revenue Growth: 98 percent Employees: 12 local; 75 field representatives
When Charlie Nelson projected where his company would go in 2009, he was way off – and he couldn’t be happier.
A year ago, Nelson predicted Here to Serve Inc., which does business as Midwest Metro, would see an increase of about 4,000 client orders from 2008. Orders actually grew by 18,000 compared to order volume in 2008, and the company ended 2009 with almost 40,000 client orders.
Midwest Metro’s 2009 revenues were $4.8 million, and Nelson, vice president, said the upward trend started early last year.
“We were running ahead beginning in February,” he said.
Midwest Metro works with about 75 field representatives, completing property preservation and real-estate-owned work for lenders after borrowers default on loans.
Property preservation involves securing and maintaining property as it goes through the foreclosure process on its way back to the lender, Nelson said. An “initial secure” job includes changing the locks, winterizing and evaluating the property’s status, from leaks, broken windows and mold to vandalism, missing fixtures, trash and hazardous materials.
REO work entails preparing a property so it can be sold, from cleaning and maintenance to lawn mowing and some rehabilitation.
In August 2008, Nelson and his wife, company President Anne, bought Midwest Metro from Bryan Cates, who founded the company in 2001.
The company added two full-time employees last year and expanded in the Chicago area and in the South, with operations now in Missouri, Arkansas, Oklahoma, Kansas, Illinois and Tennessee.
“During the year, we added two ZIP codes in the Chicago market, which is pretty significant, and we added ZIP codes in Memphis, so we’re in a new state,” Charles Nelson said. “We’re overwhelmed in some respects with the growth. We feel blessed to have the growth that we’ve had.”
Midwest’s business is tied to foreclosure rates, which also have influenced growth. According to RealtyTrac.com, an online database of foreclosure properties, reported foreclosure filings dropped nearly 10 percent in January, compared to December 2009, but they’re still 15 percent higher than in January 2009.
The January 2010 U.S. Foreclosure Market Report also showed that filings, including default notices, scheduled auctions and bank repossessions, were reported on 315,716 U.S. properties during that month.
Midwest Metro’s client list includes Wells Fargo, Chase, Citibank, Sun Trust and Bank of America, with which the company has a three-year contract.
“It’s a competitive business to be a vendor for these people,” Nelson said.
The key to handling Midwest’s substantial growth has been the company’s investment in Field-Comm mortgage field services software developed by Connecticut-based East Point Systems Inc. to handle high volume and help eliminate paperwork. In early 2009, Midwest Metro was one of three beta sites for the software and is now one of two alpha sites, meaning Metro has upfront input into changes and development.
“There are very few companies using the system as extensively into the field,” Nelson said.
When the Nelsons bought Midwest Metro, the massive amount of paperwork, especially from the field, was overwhelming. Having software that works both internally and externally is critical, Charles Nelson said.
The software eliminates the use of multiple proprietary systems, said Director of Operations Tyler Danalds.
“It’s allowed us to make enhancements with technology. It’s allowed us to bring on more staff and become a key player,” he said.
Still, Nelson is quick to attribute Midwest Metro’s growth to another important asset.
“We’ve got good employees. That’s key. I can’t stress that enough,“ he said. “The people we have internally and the field reps we have externally are the reason we exist.”
