There is money to be made cleaning foreclosure properties, just look at all the ads on google, some are selling ebooks that will give a step by step on how to start cleaning foreclosed houses, apparently it is a business where you need to know who to contact in order to get foreclosure clean out jobs. Some have been working and cleaning foreclosures for a number of years now,
Real Estate agents cleaning out and maintaining foreclosures
so it is not a new business it has been around for a long time it just is something that more people are becoming aware of. So real estate agents want to know who can clean out foreclosed homes in their area, so they would be the first person you will want to contact in your city or town, because real estate agents will have a listing of foreclosed proporties as well as banked owned REO's.
You will need a big enough truck or bin to haul away all the trash that is left behind in these foreclosures, due to the smell and oder of decay and rotten food, it is not going to be all fun and play, if you are doing the work yourself or if you are hiring someone to come and do the hauling of the trash outs it is not a piece of cake it will take hard work and long hours, some of the things you will need to know is how much to charge per square foot.
Some foreclosure cleanup companies hire cleaning services to do the domestic cleaning and use laborers for the heavy lifting, such as vehicles, boats, campers that may get left behind during an eviction.
Recession proof business
When the economy is in a crisis many are looking for a recession proof business that they can do and get started with that will help them make money as well as finding good ways to start a business with little upfront investment, usually coming up with the capital for a business is why many will not want to get the licenses and insurance necessary to get the business running, you will need to pick a name for your business,
What is my website contact information?
You will need to have a contact such as a phone number or website so that people can reach you and leave emails, you could run a full page advertisement in a magazine such as small business magazine but you will end up paying thousands of dollars just to get customers or clients to buy your informational product. Once you have all you need to get started next thing is to contact real estate agents and real estate investors to find out which foreclosed homes in your area needs to be cleaned.
Many of the homes that need to be cleaned just need minor cosmetic work from landscaping, hauling away debris and regular domestic cleaning of walls, sinks, refrigerators or mopping and sweeping the floor, others may need replacement of carpet and if light fixtures are missing than there will be an extra cost to the lenders to get those things fixed,
if it is a foreclosure investor they may buy the home for low bargain or as is prices so that they can rent out the home monthly for rental income, with so many victims of foreclosure stripping the homes by taking out tubs, toilets and kitchen sinks to resell for money it has made it a real challenge to be able to get any money out of the foreclosures, the prices have dropped so low around $15,000 dollars in Atlanta, GA.
The agent was unable to find a buyer due to the home getting vandalized while it was going through escrow so the real estate investor decided not to purchase the home leaving it vacant on the market so that a property preservation company had to be hired to maintain the foreclosure so that it would not be left unattended, due to broken windows or missing parts of the home makes these a great find for the fixer upper types who know how to do most of the construction themselves.
The business opportunity is there for cleaning foreclosure properties but it pays to find out from those who have been working in the business for a while that way you can avoid many of the trial and errors of starting a home business cleaning foreclosed houses for banks.
Well the reason I even mentioned Las Vegas is because they have a high number of foreclosures, as well as many more areas in the inland empire, I was just reading in the news that some of the hot areas for foreclosure cleaners is in Florida, Miami, Las Vegas and the inland empire California, real estate investors are looking to buy homes at low bargain prices,
So all the banked owned properties that are selling for half off the going comparative market analysis are going to just put them foreclosures back on the market so that they can rent out the homes for a month rental income of over a thousand dollars. Just think all these real estate investors looking for REO 's and HUD homes are going to need to use foreclosure cleanup companies to maintain and get the house ready for resale. Even former real estate agents are starting to see the profitability maintaining foreclosed homes and providing property preservation services to mortgage lenders.
In the news they have reported that companies that are cleaning foreclosed homes have some how reached a golden opportunity of money falling from the sky, well I would have to think that it is not that easy to start a foreclosed home business, it may seem like it is an easy thing to do but actually the hardest part will be marketing your services getting contracts and finding reliable domestic workers to help with hauling the trash and the debris from the forclosures. So my advice would be to talk to companies that are cleaning out and maintaining foreclosures to find out how they go about getting work.
Then once you have done your research you will be better prepared for what will happen as the years go by and the industry gets more saturated with abandoned, vacant, foreclosed homes. many of which are being stripped of everything from light fixures to sinks, toilets and being sold for money.
How to find subcontracting work for your foreclosure cleanup business
If you are like me you want to make sure you keep busy, because the more work you can do the more money you can make, so first you will want to contact real estate agents, network with them and go to the real estate associations, check out a few meetings and take your business cards, let them know you will be able to help them with lawn care, lock changes, repairing broken windows and debris removal. Contact the HUD website to get a list of the large property preservation companies as well.
Both for HUD and VA homes as well as conventional foreclosures need to be serviced and you can do research to find out how to get contacts for cleaning HUD and VA foreclosures. Next you will need to come up with a price list so that you can know how much you should charge to clean foreclosed homes,
also it is good to get a list of HUD companies looking to work with you so that you can complete a full contact, HUD sells properties that you might want to buy go to their site and read how you can buy a HUD home. Then, check out the listings of HUD homes in your area.
If you think you want to buy a HUD home, you need to contact a real estate sales professional in your area who is authorized to sell HUD homes because your sales professional will submit a bid for you.
U.S.Department of Housing and Urban Development is a good place to find out more about the billions of dollars in grants that is being funded to help with the Neighborhood Stabilization Program, those who qualify are ones who purchase and rehabilitate foreclosed properties and resale them to low to moderate income families.
REO asset management and mortgage field services and property valuation providers is going to have a chance at applying for these funds. So as a small business owner you will want to contact and call them to find out how to get started and when they can subcontract out the work to you in your local area.
The types of property inspections include: occupancy inspections, initial vacant property inspections, vacant property inspections, voluntary pre-conveyance Inspections and eviction Inspections.You can use the HUD guidelines to figure out the pay structure for each, it can vary depending on who you work for. You will be verifying and determining occupancy most of the time. This is what you could expect to make per house:
To get the most out of this type of work you will need to hire help so you do bulk orders which is as many as a thousand houses to inspect at one time.and can include boarding, lock changes and yard work. Unless you are required to create your own form many property preservation companies will have their own inspection forms.
If you are doing everything from lawn maintenance to trash outs, pressure washing, gutter cleaning and repairs it will be important for you to learn how to price foreclosure cleanup jobs using HUD's guidelines. This will help you keep from just breaking even so you can actually make a profit.
What information do you need if you are interested in foreclosure cleaning, well first you will need to know where to find the business, how to quote the work and get business contracts. once you get the jobs you will need to know how to do the work,
What you will need, Paperwork to fill out, tools and equipment
if any special tools or equipment is needed as well how to handle the paperwork, there will be a lot of paperwork to fill out and if the invoice is not filled out correctly your foreclosure cleanup company will not get paid.
You may want to make sure you can get samples of invoices, quotes and logs so as not to miss anything important.
List of agents who handle REO properties from your city
If you are looking for agents who handle REO properties, real estate owned or banked owned properties you can get a free list for your city, then you can start getting your cash for cleanouts, I know it sounded catchy. Realtors and mortgage companies are not the only people who handle foreclosed houses.
Property Managers need help from cleaning services
Cleaning and maintaining foreclosures can be done for more than just realtors and mortgage companies the other types of businesses that need trashout services include property managers who have rental properties and commercial properties that need foreclosure cleaners and foreclosure cleaning services to clean out, cleanup vacant apartment buildings and business office buildings.
Home builders need help with newly constructed vacant homes
Home builders also have lots of newly constructed homes that are now vacant due to homebuyers not being able to get a home loan or credit to purchase the newly constructed housing tracts.
The increasing amount of houses in foreclosure is partly due to the slowing of housing sales and the impact of rising monthly mortgage payments of homeowners who took on adjustable rate loans and sub-prime mortgages.
High Mortgage Payments
More of the homes are out of reach for the average person who can not afford the high mortgage payments and the rise in unemployment makes it more likely that more people will enter foreclosure by the end of the year in such areas as Colorado, Nevada and Georgia, Texas and many more in California.
What needs to be done to these vacant forclosed homes or commercial property is the same they need debris removed, cleaned out, locks changed, windows boarded up as well as lawns maintained.
Getting Clients. Hire Workers
Getting clients in the foreclosed home industry is easier than you might think, your phone will ring off the hook and you will have to turn down business because you will have so much work to do. Hire people to do the cleanup work for you and you can just answer phone calls and do the paperwork.
You can also do joint ventures with other companies that are cleaning out foreclosed homes and share referrals so that both of you can earn more money in your cleaning foreclosed home business.
Joint Venture with other cleaning companies
Why this works so well is that it is easier when it comes to pricing your services, for pricing supplies of cleaning equipment such as bleach, degreasers, glass cleaners, chrome cleaners, mold and mildew, brooms, mops, gloves, buckets are all things that you will need to include in pricing supplies, buy some do some foreclosure cleaning jobs and then you will know how much you should be charging per hour.Foreclosure Cleaning Ebooks
You will find many ebooks online that will tell you they can help you get started cleaning up foreclosures and that you can make 25 to 400 an hour. Be cautious because not all the guides, advice or news is accurate and is just out to get a quick buck, do you research so you can find out the real truth and learn how to make money starting your own foreclosure cleaning business.Starting a Business in Real Estate Mortgage Services
If you have been reading the news then you probably are familiar with the foreclosure cleaning services that are startups for entrepreneurs looking for ways to make money cleaning out foreclosed homes,
Realtytrac has reported that foreclosures are up which means that there will be more foreclosure clean out jobs on the market and a growing need for foreclosure cleaners who know how to provide foreclosure trashout.
More foreclosures than there are cleanup companies
I am here to tell you that starting your own foreclosure cleanup company is not going to matter if competition is high, this is because the number of foreclosures is rising at an alarming rate, too many, too soon, lenders and mortgage companies are left trying to find enough workers to come and clean and maintain these real estate properties this is because the making home affordable plan will not work for all homeowners.
Foreclosure and Evictions
Understanding evictions after foreclosure , the subprime mortgage crisis is affecting more than just homeowners, many renters are also having to move as they continue to pay rent to landlords that are facing foreclosure notices, then the banks and property managers are giving out cash for keys, for those who need more time to find a place to live they can contact an attorney about rent control laws. Mortgage brokers can help with refinancing your home loan, chapter 13 attorneys can also try to help you file papers for bankruptcy which should be a last resort for you to consider. Mortgage negotiators help you establish a repayment plan with the bank, private financiers usually can arrange a new loan or seek to buy the house from you. Your mortgage holder will try to get you to reinstate your mortgage with mitigation services.