Property Preservation - What does it entail?

Record numbers of houses have been foreclosed on, or owners have just stopped paying the house loan, and walked away through the past few years. Generally, the dwellings sit empty in a nationwide market where very few people are buying. As a result, demand is up for property preservation companies who can secure and clean up a property and landscape so the residence is safe and looks maintained.

A preservation company provides the expertise to get an abandoned house ready to sell, so the lender can recoup its losses as fast as possible. When the company comes in, it ensures the home and any surrounding areas, including pools, are correctly secured. Next, they remove debris so that the home can be cleaned up and made more appealing to prospective buyers. Finally, the preservation company maintains the house and yard while the bank tries to sell it.

Usually, property preservation companies first obtain the property by changing the locks and installing deadbolts as needed. Any windows or doors that may be damaged or absent are covered with boards, instead of being replaced at this time. A lock box is often installed to allow authorized personnel access to keys. If the property has a pool, it is secured to avoid injuries.

Junk removal is usually the biggest part of the preservation company's job. Personal items that have been left behind are taken to a storage container, where they're kept for a period of time, then sold if they have not been reclaimed. Garbage is cleaned out of the house. Any automobiles left on the premises are removed based on the mortgage holder's directions. Unsafe wastes on the property must be dealt with and taken away in accordance to strict local regulations.

Additional services provided by property preservation companies can include preparing the property for winter weather. This generally includes steps that are taken to insure that pipes won't break or burst in cold temperatures. A number of steps are followed to be sure that water has been drained from all the pipes in the house, lines are capped and the main water supply is shut off.

A preservation company also offers lawn upkeep and swimming pool maintenance according to directions given by the mortgage holder. Finally, when the house is ready to be put on the market to sell, the company can fully clean the inside rooms so that it's ready to be shown again by realtors.

Since the demand for property preservation companies has risen so fast in the last few years, now is a good time to look into starting a preservation company. Anybody interested in this type of work needs a business license and general liability insurance. Once those are acquired, the company is ready to start work. A business owner just starting out should think about looking for potential clients among smaller, locally owned real estate agencies, lenders or banks.

Lots of property preservation company owners say that, after a while, they have developed a viable and growing business venture. As the economy continues to struggle and the real estate recession continues, it looks as if there should be plenty of work for preservation companies for years ahead.

America's Infomart is a premier property preservation and property maintenance company. For all their services, visit AimYourWay.com.

The Property Preservation Business - Good Move?

So is getting into the property preservation business a good move? There are a lot of good reasons why getting into the property preservation is a smart move but all I can say is that is one of the best businesses you can start today. I will give you a list on some of the good things about starting this business.

1) Its Cheap

This business does not require a lot of capital. You can even try renting the supplies needed and start the business immediately. If you even get some good training from experts in the field, you can start foreclosure cleaning jobs in a few weeks with very minimal capital.

2) There is a huge demand for this business

It is estimated that there will be over 2 million foreclosed houses by the end of 2010. This means that there will be millions of clients nationwide. Even in your neighborhood, there are a lot of foreclosed houses which you can do business with. With a surplus of foreclosed homes that needed to be put into marketable conditions, the current property preservation companies cannot handle the surplus. Thus, this industry offers so much potential and opportunity.

3) You can work a good amount of money

When your company has already a good track record, through reliable services, money can come very easily in this business. You will see that there will be numerous banks, companies, and real estate owners calling you for your services. You will find yourself getting projects whole week long. of $900 to upwards of $10,000 per property to clean out, repair, and maintain before they get ready to put it into the market. You try to do the math, you can really generate a lot of profits this way.

4) The industry will just get bigger

Aside from the already influx of houses that need property preservation services, the amount of foreclosure will just continue t explode. As the economy is still in recession and more and more people continue to become unemployed, more real estate home owners will have less capacity to get their payments. This is a sign that more homes will become vacant in the coming years.

6) Its easy work.

This kind of service is not that hard to master. You don't need to have any degree in college or any field of master. All you need is the right determination and you can succeed in this kind of business.

Indeed starting a property preservation business is one of the easiest and most profitable businesses there is. If you want to start earning big by starting your own company, I recommend you get in this industry. It's cheap, profitable, has high demand, and the work is not that hard. Anyone can succeed in this industry and given enough training and starting on the right track, you can have a money generating machine by simply maintaining and cleaning foreclosed properties.

I highly recommend to anybody that's actually serious about starting a successful foreclosure cleanup business to read this

Foreclosure Cleanup Businesses

Due to the massive increase in foreclosures across the US in the last couple of years, the economic crisis has opened some incredible opportunities for those wishing to earn a healthy sized income. Opportunities within the foreclosure industry range from foreclosure cleanups, to high-end financial transactions involving the buying and selling of foreclosed properties.

If you're wishing to start a profitable business within the foreclosure industry, there are a few tips you need to know. Firstly - and contrary to popular opinion, banks take little enjoyment from foreclosing on peoples homes and evicting tenants. If not from an ethical perspective then from a monetary standpoint, since it costs the banks a lot of money to handle foreclosed properties.

In the event that the bank has to foreclose on a property, an opportunity is created for cleanup and property preservation companies to get the houses ready for sale. Most foreclosed properties are not always left in the cleanest of conditions - which obviously makes it difficult for banks to try and sell them. If you're looking into starting a Foreclosure Cleanup Business, click the link for my other article.

Foreclosure Cleanup Businesses - Are They Businesses That Last?

A common worry among people “kind of thinking about” starting up a Foreclosure Cleanup Business, is that there will only be huge profits to be made during an economic crisis - since foreclosure rates are always highest during a recession. Undoubtedly, there’s more work to be had by foreclosure cleanup businesses during a recession, however, the companies that follow the principles laid out by Les Tyler for example, thrive successfully regardless of the economic situation. If you start a Foreclosure Cleanup Business hoping to make a quick buck - you may very well make money in the short term, however, it’s unlikely that you'll thrive once the recession passes. If you don't build a business on principles of great customer service, a strong work ethic and establishing stong business relationships with clients, your company will simply fizzle out when the economy stabilises. If you want to start up a Foreclosure Cleanup Business, then NOW is the time to do it. Also, If you wish to start up a foreclosure company that lasts beyond a recession and easy money, then I highly recommend reading this.

Having Patience In The Foreclosure Cleanup Business

One final point is regarding patience. Many people get into the Foreclosure Cleanup Business with an instant gratification mindset. Although there’s few costs involved in starting a Foreclosure Cleanup Business (see Foreclosure Clean up Business Costs here), it's not a get rich quick scheme! There's plenty of money to be made, but it still takes time to build a the business up. Those that come into the Foreclosure Cleanup Business with patience and a long-term perspective, always come out on top of those that want easy money and become frustrated if they’re not millionaires within a month. This holds true in the achievement of just about any endeavour. Just think if you come into this industry with a patient attitude, the hordes of competition that jump on the bandwagon and quit in frustration will leave more work for your company to take up.

Foreclosure Cleanup Jobs - How To Get Paid On Time

Foreclosure cleanup jobs can be relatively easy to secure, given the current economic crisis and the virtually untapped nature of the foreclosure cleanup business. Foreclosure cleanup jobs can involve general tidying, maintenance of properties (grass cutting, weeding and clearing gutters), removing waste, minor to major repairs, changing locks and other specific requests made by clients.

Often-times when a foreclosure cleanup business is in its infancy, a lot of jobs can be provided in the form of subcontracts from larger property preservation firms (since they receive the bulk of larger contracts). Larger companies may outsource jobs to smaller foreclosure cleanup companies to compete services on properties. The problem for smaller foreclosure cleanup companies, however, is that the larger property preservation firms can withhold money until they get paid from the client (banks, lenders etc) for the jobs completed. Obviously, this can present a massive problem in regards to cashflow for the smaller cleanup companies, since the money is passing through two hands instead of directly from the client.

If you're starting a foreclosure cleanup business and are looking for foreclosure cleanup jobs, I've put together a few tips that can help safeguard you against late or non-payment of any subcontracted cleanup job.

Negotiate Foreclosure Cleanup Job Payment Terms

Discuss and agree on payment terms with any company prior to starting any jobs. Typically, payment terms can be anywhere between 15 to 90 days from date of invoice (depending on the nature of the jobs). Most large property preservation firms will state their payment terms are company policy and nonnegotiable. So you’ve got a choice, you can argue your case for shorter payment terms or you can walk away from the cleanup job. However, you’d be surprised how often a little arm-twisting can help change these “nonnegotiable” terms when you stick to your guns. This is really your call, however, you're not a charity and no small foreclosure cleanup business can afford to do jobs for free - for very long at least. If you take on too many subcontracted cleanup jobs from companies that don't pay on time, you'll find yourself out of business before you've even got started.

Get your Foreclosure Cleanup Jobs In Writing

A subcontract works agreement or a contract signed by both parties is essential. You need the specifics of the jobs to be completed and also the payment terms in writing. If you carry out jobs via a verbal agreement, you're taking an enormous risk! You need to document your terms in writing and have their company sign it. If the organisation that is contracting your company asks you to sign their own agreement, read it thoroughly and do not be afraid to dispute any terms you don't agree with.

Add Late Fees as Part of the Foreclosure Cleanup Contract

If you stipulate late payment fees as a term in your signed contract with the company. You are within your rights to employ those fees should the company fail to pay within the agreed terms. Obviously charging late fees or involving solicitors can damage company relationships, however, if there’s no reasonable explanation for a late payment then it's something you will need to consider. Before getting to that stage, become a pest - this means picking up the phone and phoning every day until you get an update on payment. You can hire a credit controller to do this also, although for a new foreclosure cleanup business that may be a bit of a luxury. You can send payment reminders to the companies that owe you money, if that doesn’t move things along, have your solicitors send standard 7 – 30 days until legal proceedings letters.

Foreclosure Cleanup Jobs - Doing Your Homework

It’s perfectly acceptable to request references from any property preservation companies that wish to hire your company for job. You can always state that it's part of your company policy. Ask for three or more references for companies they've subcontracted jobs out to in the last six months. You can check with those subcontractors to see if they were paid a timely manner.

Using Factoring Companies for Foreclosure Cleanup Jobs

In this day and age, many smaller foreclosure cleanup businesses are starting to use factoring companies. Factoring companies essentially purchase your invoices for a percentage of the overall value due. This way you can get money straight away and it becomes the factoring companies responsibility to chase the invoices for payment. For example, you do jobs for a client and invoice them for $5,000. Instead of waiting 30 to 90+ days for payment, the factoring company will buy the invoice from you (minus their fee) which may be 5% for instance. So the factoring company purchases your invoice for $4,750 and you get the money within days of completing a job, as opposed to potentially waiting for months. Obviously this is your call again, since you’d lose out on $250 to get paid sooner rather than later. This really depends on how much cash-flow will be an issue for you, the type of clients you do jobs for and your relationships with them.

I highly recommend to anybody that's actually serious about starting a successful foreclosure cleanup business to read this

Hiring Staff When Starting a Foreclosure Cleanup Business

When starting a foreclosure cleanup business, you will almost inevitably reach a point in which you need to hire a cleanup team to help you. As efficient as you may be as a person, the stringent deadlines set by clients are enough to overwhelm even the hardest of workers.

I've put together some tips for working with your foreclosure cleanup team effectively. When hiring new employees into your foreclosure cleanup business, it's essential to find people that are on “the same page” as yourself. Reliability, attentiveness and a level of professionalism are all requisites of the job.

Dealing With Your Foreclosure Cleanup Team

When working with a foreclosure cleanup team - especially a new team - it's essential to show them around each property and point out every job that may be overlooked easily. A great tip is to leave a to-do list for your team so they can check off every job you assign them, this way there's no confusion as to who’s doing what and you can personally inspect the work afterwards.

Staff Management In Foreclosure Cleanup Business

If any of your team members have “half-assed” the jobs you've assigned them (or they've overlooked anything completely), then you will need to approach the team member/s responsible for the jobs in question. It's necessary to make sure you don't come across as nitpicky. If your team begin to think you’re being “nitpicky”, they will most likely begin dismissing or resenting the things that you tell them to do. When you need to approach any of your team over any issues, make sure that you also highlight the positives of their work. In addition, It’s necessary to ensure your team fully understands the importance of your companies reputation for excellent work – also how it affects securing foreclosure cleanup contracts in the future.

Feedback When Starting A Foreclosure Cleanup Business

Ken Blanchard once said “Feedback is the breakfast of champions.” Well this is true of both your employees and yourself. Obviously feedback from your clients (banks / lenders etc) is imperative, however, feedback from your team is also important. You should let your team know that you're open to any ideas they may have in regards to Improving the effectiveness of your business. This allows every member of your team to work in unity with one goal and gives everybody an opportunity to contribute, as opposed to having your team feel like they're mindless drones with no further value to your company.

Positive Reinforcement Of Foreclosure Cleanup Team

It's important to positively reinforce excellent team performances i.e. if all of your team meet every criteria on the to-do lists you’ve set in a time-efficient manner. You can reward staff with bonuses, so long as they don't become an expectation (as they are with bankers!), otherwise a bonus loses its value as an incentive to do a good job. Early finishes, flexibility with working hours and positive appraisal are great ways to keep your team motivated and striving for excellence, however, these are incentives for excellent performances and should not be taken as liberties. It's important when devising your own incentive scheme to ensure that your team can't “cut corners” in order to receive bonuses. This may take a little trial and error or planning on your behalf.

Respect In Foreclosure Cleanup Business

I’ve stated previously that it’s important to be approachable in regards to feedback from your team. However, It’s also important to maintain a level of professionalism. Never let your positive incentives for a job well done be misconstrued as you being a “pushover” that can be taken advantage of. It can be a delicate balance, however, it really just boils down to being fair, honest and flexible when you’re team are performing well, and not as flexible when they’re slacking off. Remember that respect is earned not bought, and just because you’re paying your teams wages does not mean you automatically have their respect. 

I highly recommend anybody that's actually serious about starting a foreclosure cleanup business to read this. Or at least starting a successful foreclosure cleanup business that will last i should say.

Costs Involved When Starting A Foreclosure Clean Up Business

One of the best things about starting up a foreclosure clean up business is the small start-up costs. They say that “out of every crisis comes great opportunity”. Well due to the current economic crisis, there’s a great  opportunity to make money “The foreclosure clean up business”. There's never been a better time to get involved in the foreclosure clean out business, so if you're thinking about starting your own foreclosure business - the time to act is NOW! There's almost an unlimited amount of work to be had in the industry. Banks / lenders are desperate to find reliable foreclosure clean up companies to carry out work, and they're playing handsome amounts of money to get it done.

I've listed below a few costs associated with starting your own foreclosure cleaning business.

Foreclosure clean up business cost 1 - Transportation

Having access to a suitable vehicle in the foreclosure clean up business is obviously of unparallelled importance. You're going to need a vehicle that’s capable of containing all of your cleaning equipment, tools and anything else you may need during the clean up process. Personally, I recommend hiring or acquiring a second-hand pick up truck - preferably something economical and reliable. You will ideally need a vehicle large enough to handle any removals from properties. If you have enough space in the vehicle you can make less trips, so you save time and make more money by getting jobs done quickly.

Foreclosure clean up business cost 2 - Equipment

Depending on the type of jobs at hand, it may be become necessary to buy or hire certain cleaning equipment. If you have a lot of tools or equipment lying around your own garage, then obviously you can alleviate some of the costs by using those instead.

Foreclosure clean up business cost 3 - Insurance and Legal Entity

It is highly advisable that you create a legal entity, for example an LLC (limited liability company). These are easy enough to make and can be done so through sites such as Legalzoom.com

Having insurance is also a MUST, most lenders / banks will simply not give you the work if you're not insured. You also need a cell phone so clients can get in touch if you, however, phones are fairly inexpensive these days.

Foreclosure clean up business cost 4 - Knowledge

Abraham Lincoln once said “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” If you want to thrive in the foreclosure clean up business, you will need to sharpen one tool in particular – your mind. Those that plan, prepare, work on their knowledge of the foreclosure industry and see “the big picture”, are far more likely to succeed.

If you want to separate yourself from the crowd and make real money, then you need the knowledge to get you there. Those that rise above the competition use this Click here to find out more.

Foreclosure Cost Saving Tip

If you're thinking about the long-term, then I advise purchasing any equipment you know you're going to be using a regular basis. If you don't have the spare income to outright buy equipment straight away, then renting equipment for your first few jobs is fine – you will have enough money soon enough!

If you do need to rent any supplies, I recommend visiting your local hardware store or searching online for equipment prices. If you know how much equipment costs to buy outright, then you can avoid being taken advantage of in rental costs.

There really isn't a better time to take advantage of the money to be made in the foreclosure cleaning business. Those that have access to the best knowledge can produce the best results and make the most money. If you’re interested in starting up a successful foreclosure clean up business, then you need to use a resource that the most successful foreclosure clean up business owners are using. Click here to find out more

Starting a Foreclosure Cleanup Business

5 Tips You Need To Know When Starting a Foreclosure Cleanup Business

The foreclosure cleanup business has been praised as one of the greatest industries to start out in as per the USA Today article, "Trash-out firms clean up in foreclosure biz."

If you're thinking about starting a foreclosure cleanup business, I've listed five things to consider before heading in.

When Starting A Foreclosure Cleanup Business Get Licensed

Become Licensed, bonded and covered with Insurance. Clients will expect any company they contract for foreclosure cleanup jobs to be licensed and insured. If you fail to get your cleanup company licensed and insured, it's likely you'll fail to receive any jobs.

Many banks and companies require a "1 million dollar liability insurance plan". A good insurance firm will be able to advise you on exactly what you'll need.

Foreclosure Cleanup Business Contractors

When starting a foreclosure cleanup business, you will need the expert services of numerous skilled tradesmen, e.g. electricians, painters, plumbers and so forth. Before you start up your business, line some up within each trade. If have any reliable tradesmen as friends, employing their services may be beneficial depending on your relationship. 

Even if you're qualified within any of these specific trades, things can and will become  hectic. Due to stringent client demands, you will need to outsource work at times.

Who To Hire

If you need to Subcontract work out, do so to skilled tradesmen who are also licensed and insured. If you seek the services of a plumber for instance, the client may well require the plumbers official certifications to assure all work has been completed by a licensed tradesman.

Expect the Unexpected When Starting a Foreclosure Cleanup Business

In the foreclosure cleanup business, you never know what to expect when you enter a property. There may be fecal matter on the walls, wildlife, pets left behind, needles on the floor or even angry tenants that have refused to leave.

Safety Comes First In The Foreclosure Cleanup Business

• Under no circumstances enter a home for the first time on your own.
• Wear gloves in “less than pleasant foreclosure cleanup jobs”. knock on doors and even shake fences before entering a property (there might be aggressive dogs left behind, or owners for that matter!).
• Remain vigilant at all times - you need to be alert and on guard. You don't know what you may come across in one foreclosure job to the next, so don't become complacent and assume you "know it all" after your first couple of jobs.

Estimating Foreclosure Cleanup Jobs

Banks and financial agencies count on speedy results. Often, they will want you to get started as soon as possible after a proposal is accepted. That is why when you're preparing a estimation, keep some of the following things in mind.

•     Your own personal schedule
•     The number of contractors you'll need to complete the job
•     The schedules and workloads of the subcontractors you intend to hire

Logistics can be a headache in the foreclosure cleanup business - especially when using subcontractors. You need to try and do business with the same subcontractors frequently. The more work your company provides the same subcontractors, the greater the chance they'll give your jobs precedence over others.

When Starting a Foreclosure Cleanup Business Hire a Good Receptionist

Many people underestimate the importance of a good receptionist. However, the person answering the phone can make the difference between landing a $5,000+ contract, and nothing at all.

When banks and financial institutions phone companies for foreclosure cleanup jobs, there’s rarely a second chance given. The banks may be looking through a phone book or searching websites for foreclosure cleanup businesses. If your business fails to answer the call or conveys a poor attitude, you will fail to get work – it’s that simple.

Therefore, if you decide to hire a receptionist get somebody that's pleasant, trustworthy and professional. In addition, pay him or her well and let them know how important they are to the company. They are the first point of contact for your cleanup business.

Are you serious About Starting A Foreclosure Cleanup Business?

Succeeding in the foreclosure cleanup business can take hard work to start with, as does any business. However, the rewards can be phenomenal. Also once you get to the point in which you’re contracting most of your work out – it becomes almost effortless. It's an industry that requires relatively little start-up money and no degree etc. It’s just a straightforward way to make money and that’s why I love it.

If you’re serious about starting a foreclosure cleanup business, then you need to get serious about where you learn how to become successful. To do that, i highly recommend listening to industry expert Les Tyler - more info here.