As a small business owner you will need to contact real estate agents, landlords, banks and property preservation companies, to negotiate bids for various foreclosure cleanup jobs. How much you charge will be determined by what type of work your company will be performing for the various businesses. Each cleanup such as lawn work, tree trimming, sheetrock repair, carpet removal and interior cleaning prices will change depending on how big the property is and how long it will take to finish the job.
How to estimate the cost of a cleanup job
If you go online you can get an estimate on how much has been paid on previous work orders with similar companies offering the same services as yours, for example if you are doing a full interior cleaning of all rooms in the house or you are requested to re-key the doors. repairing a broken screen door or removing debris from the yard, this could cost anywhere from $1000 dollars to $3,000 dollars to complete. The key is to underbid your competitor inorder to get the work orders but at the same time you want to make money from your foreclosure cleaning business.
Remember you may to rent equipment and hire subcontractors to help get the work done, painting the interior of the house can run up the price of the bid if you are taking care of water stains on the ceiling in the living room and kitchen and hallways, it is determined by the square footage of the entire home. It may be necessary to take a look at the house and determine what can be done before actually putting in your bid for the job.
Many foreclosure cleanup companies today must offer all services to lenders to get the job, so if you currently only specialize in a certain area you may want to expand to include: lawn maintenance, trashouts, pressure washing, gutter cleaning, repairs, and painting. Millions of adjustable rate mortgages in the millions are causing homeowners to default on their monthly mortgage payments. So it is important to price your services so that you are able to receive a profit from your work. It starts by doing your research and learn how contracts work, who gets paid and when, as well as how to win a contract on a real estate bid, that is why using the HUD pricing guidelines gives an estimate that property preservation companies can use.
Price foreclosure cleanup jobs with HUD Guidelines How its done
First of all it is important to note that the tables list the maximum amount HUD will generally pay which could end up being considerably less. If you are a subcontractor for the job your pricing may be different than if you are the main foreclosure cleanup contractor for property preservation that the lender has chosen. It can be a little frustrating especially if you over bid and lose the contract.
Frequently Asked Questions in the Foreclosure Cleanup Business
Cleaning residential and commercial properties can be really lucrative is done right. Many want to know how to get started in the business but it actually depends on if you are already offering junk removal services or if you are needing to rent or buy equipment to do the cleaning. If you are not licensed or insured this is one thing you definitely want to do first. You will be working with real estate agents, banks and mortgage companies.
When it comes to knowing what to charge is determined by a variety of factors when it comes to finalizing a rate for your service, such as geographic location, square footage, length of time vacant, repairs and cost of materials as well if there is a need to hire subcontractors. It will take seeing the job site first to accurately determine how much to charge.
HUD Foreclosure Listings
Finding clients is another common question, you will want to start with the homeowners association and market to real estate investors, individual homeowners, mortgage brokers, who will offer repeat business to your company if you learn the right way to be a success in this industry.
Most building cleaning workers work indoors, but some work outdoors part of the time, so don't under price your work.
Cleaning homes is very hard physical work and you didn't get into this business to work for nothing, you can find information online about how to get a commercial cleaning job as well as breaking into commercial cleaning takes diligence and persistence for getting a job cleaning houses,
you an also find cleaning jobs in London where they can list night cleaning jobs, evening cleaning jobs, part time cleaning jobs, full time cleaning jobs.carpet cleaning jobs, and domestic cleaning jobs. It all depends on what your goals are.
You can also contact developers and landlords who will be renting property to those who are no longer homeowners.
Prevent Foreclosures, Shortsale
One of my friends was able to stay in their home by offering to pay rent to the investor who bought the home in a short sale.
How a short sale is handled in real estate is that for owners who can no longer afford to keep mortgage payments current the alternatives to bankruptcy in foreclosure proceedings is when you decide to accept less than the total amount due also known as discounted payoffs,
Lenders will require a letter of authorization and you will need preliminary net sheet, proof of income and assets as well as a hardship letter.
When it comes to copies of bank statements it is important to also have a comparative market analysis to get the highest home value possible by looking for past sales and pending sales in the market.
Those who are not looking for a new way to produce profits from the sale of foreclosures will still need to find a way to maintain properties that are left abandoned or vacant in the local cities and counties in the region.
You have a choice and a option when you are deciding on what types of services you can provide in your local community, some of the larger property preservation companies have the responsibly of many counties and regions which pose a challenge when trying to get the work done in a timely manner,
You would do best by contacting them and offering your services as a subcontractor that way you can just concentrate on one area at a time and you will not end up being overwhelmed with tasks.
REO cleaning and junk removal cover such things as:
Trash out REO Clean out
Pickup Service, Foreclosure Clean out
Storage clean out
Real estate clean outs
Having the right kind of equipment is essential. A large dump truck and dumpster to put the items in, also a contract with the dump. If you offer a Full Service Property Maintenance to the REO Broker, Banking, Mortgage and Foreclosure Industries, you can earn upwards of $100,000 or more a year. Income can vary depending on the following criteria:
if you have the right kind of insurance and business licenses, check with the small business administration and ask what is required so that you can quality for bidding contracts from national corporations that provide property valuation services.
If you want to start your business cleaning forclosures you will need to get a free list of Mortgage Loan Providers, and REO Asset Management Companies and REO Asset Companies.
Foreclosure asset managers will give you the REO listings, contact these companies directly and get the inside scoop on how to get started in your foreclosure clean out business
Learn how to clean and maintain foreclosures, start making money now with this business opportunity, real estate agents, brokers, mortgage lenders, banks have too many foreclosed properties and they need your help.
Cleaning out foreclosures will help you start a recession proof business that is lucrative and there is more work everyday.
The new stimulus package the new administration has passed will not help everyone who is facing foreclosure. Some will get help with paying their mortgage but many will not qualify for the plan to lower the average homeowner's mortgage payment, The goal of the plan is to lower most homeowners' mortgages .How the new foreclosure crisis will help you make money with this business opportunity
If you need help starting a foreclosure clean out company the first thing you will need to do is get a list of asset companies and banks that will contract the work out to you. Real estate agents have lists of foreclosures that need to be cleaned out trash out service from recent evictions.
The Neighborhood Stabilization Program will provide grants to states and local city government, nonprofits who purchase and rehabilitate foreclosed properties for resale so you will want to start a cleanup property preservation service in their local city or county.
Once you have your proper license and insurance the next step is to decide what to charge for your services, some things to consider when deciding on how to set your rates.
The following is a list of banks and lenders that have REO properties, you can contact them to offer your services:
21st Mortgage Corp
Bank serving South Eastern US, merged with Regions Financial Corp
Bank Of America
BB&T (Branch Banking & Trust)
Reo Property in 23 states, mostly Eastern & Southern, Midwest, TX, & CO, updated bi-monthly
Bayview Financial REO
Reo Property mostly in SouthEast states, FL, AL, GA
Chase Bank Nationwide REOs
CitiMortgage Nationwide REOs
Compass Bank REO Properties in AL, AZ, CO, FL, NM, TX
Countrywide Home Loans Largest Nationwide Originator, 1000s of REO properties nationwide
Downey Savings and Loan 325 listings in CA, 35 in AZ, a smattering in other states
Fannie Mae Lots of REO property nationwide
Fidelity National Financial
Business Opportunity to Make Money Cleaning Forclosures