With the current Foreclosure Epidemic sweeping the nation, one industry that has boomed is the Foreclosure Clean Up Business. The Foreclosure Clean Up Business is a very needed service as so many of these foreclosures are left in dire disaray and desperately need to be cleaned up.
I frequently get asked, “How do I start a foreclosure clean up business?” Really there is very little training needed, however all the banks have specific requirement for their Reo vendors that clean up foreclosures. Two of the most important aspects to making a Foreclosure Cleanup Business a success is finding work and knowing how to price your Foreclosure Cleanup Bids.
Who do I contact to get work in the Foreclosure Cleanup Business?
You will want to target REO Agents “these are the real estate agents that list Reo Properties, try finding them on the Foreclosure Cleanup Network, it’s free and you can offer them your services, another resource is the Foreclosure Cleanup Directory, this is the #1 Directory the banks and asset management companies use. It is always recommended to be listed here. Use social networking websites such as facebook, twitter, linkedin, and more to connect easily with Reo Agents. You will need to register with all the banks and reo companies if you are looking to get work directly from the banks. All of them have a registration process, a simple reo vendor application can get you listed on their list of Reo vendors that they refer foreclosure cleanup work to. There is a list of Banks and Reo Companies online that you can download that we found, here is the link:
Where do I Find Foreclosure Cleanup Business Startup Information and Training?
One resource that we know of is this website:
They are very well known in the Foreclosure Cleanup Industry and have been around for a very long time.
How do I Price my Foreclosure Cleanup Bids?
Accurately pricing your foreclosure cleanup bid can be the difference between making it in the foreclosure cleanup business and not. When pricing your foreclosure cleanup bids, if you are doing work for an Reo agent-Offer them a discount-they will refer you foreclosure cleanup work over and over!! If you are doing work for the banks and asset management companies, try not to over charge-on foreclosure cleanup jobs that are over $500-the banks require at least 2 foreclosure cleanup bids-you do not want to overbid as you may lose the job. Refer to the HUD Guidelines-these are very detailed rates that the banks will allow for all the different services you intend to offer such as trashouts, rekeys, boardups, lawn maintenance, etc.
Free Information about the Foreclosure Cleanup Business:
One of the best places to start when considering starting a foreclosure cleanup business is the Foreclosure Cleanup Network and it’s completely free. Learn as much as you can about getting into the foreclosure cleanup industry.
Lastly, foreclosures are not going anywhere anytime soon and is a very unique business that virtually anyone can do and requires very little training. I hope this helps answer some of the questions surrounding getting into cleaning up foreclosed homes. Much success!