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.