Currently, foreclosures are one of the most profitable segments of the real estate industry. As a result, more and more business minded individuals are trying to start different businesses related to foreclosures may it be commercial or residential. One of the most lucrative ventures you might want to consider is a foreclosure cleanup business.
Here are some common questions asked by those investigating this wonderful business opportunity.
1. How Will I Launch My Cleaning Business for Foreclosures? This inquiry is wide-ranging that it’s improbable to comprehensively answer because your situation is disparate from other aspiring cleaning business owners.
For instance, if you want to enter the foreclosure cleaning business but you already manage a junk hauling enterprise, you’ll have to perform and exert less effort than a person who doesn’t have any tools, equipment, and vehicles that you have already.
However, you should still secure a license and insurance if you are very serious about getting hired for these services. Keep in mind that a foreclosure cleanup firm will work with banks, realtors, and mortgage companies.
If you are just new on the industry, it is best if you study the market first and research about different cleaning companies to determine what the necessary devices and know-how’s that you should acquire.
2. How Much Will I Charge My Clients for my Cleaning Service? Charging of your foreclosure cleanup business depends on several factors. The segments that you need to closely look at are the square footage, geographic location, repairs needed, length of time vacant, cost of materials, contractors and subcontractors, turnaround time, etc.
An important pointer that you need to remember is that it is practically impracticable to charge for a job without looking at the property initially. While most bankers, realtors, and other property owners wish to get your quote over the phone, this is not the best way to go since it can lead to trouble later. You are most likely to over or under-price your service through this. Thus, your foreclosure cleaning business will soon face doom.
3.Where Will I Find Clients of Foreclosed Properties for Cleanups? As stated above, your biggest clients will be real estate companies and realtors. Though, you might also end up doing business with individual homeowners, mortgage brokers, homeowners association, and real estate investors.
Promoting and marketing your services to whom is an integral part in the cleaning business for foreclosures. The other half is about how you can efficiently market them. You should learn the lingo of this industry, so you’ll not be branded as a novice that will kill your chances of closing projects that you’ll stumble upon.
The good news is that when you have established your business, and a realtor or bank loved your service; they will most probably hire you again and again when necessary. It all boils down to first impression and doing it like a pro the first time you hook with a client.
For detailed information on the best way to start a foreclosure cleanup business, I recommend you check out this detailed foreclosure clean out guide, that will teach you all you need to know – guaranteed, or your money back!