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REO Trash Out Business Guide Foreclosure Cleanup

Updated on March 3, 2014

Lawn Care & Cleaning business tips

First you will need to know that some companies will require that you get licensed, bonded and insured before they will set up a contract with you.

Also it is important to note that along with cleaning you may be required to do rekeying, documentation, winterization and demolition. The more you are able to offer in your business the better opportunities you will have, which means more money in your pocket.

Exactly what do I need to start a foreclosure cleaning business?

Pricing, bidding and giving out estimates, how should you handle this when you are called for a job, most experienced companies will give a quote once they see the type of property and the amount of trash that needs to be removed.

Realtors and REO departments of banks will need estimates before they can hire you so keep a general job rate until you are actually hired for the work. Size of lot, amount of cleanup and turn around time is important in determining how much you will actually charge.

Iif you have asked this questions many times, one of the top entrepreneurial opportunities has hit the home foreclosure crisis, financial industry experts agree that the millions of delinquent mortgages will continue to climb.

Foreclosure Cleaning Business Plan

You will need to be a licensed company first before you can start to get any contract work no matter if you are an Appraiser, Termite and Pest Control Company, Building Contractor, Plumber, Electrician, Roofing Company, or Lawn Care Company.

When you start a business most of the work you wil be able to outsource by hiring painters, electricians, carpenters, locksmith etc.

Knowing about cubic yards and dump requirements will help when it comes to pricing your services as well.

Hiring workers to help with cleaning out foreclosures

Foreclosure cleaning companies will continue to profit into the near future, as long as the recession continues to put the economy in a state of financial crisis, banks will need those who can come and help get real estate back on the markets for resale.

Many are looking to clean foreclosures for a living, they even set up a corporation for their business due to its low cost startup and the continued demand for the services.

With unemployment rates at a national high many are looking at starting their own businesses.

It is the small business of choice for those who are downsized from other industries and sectors such as finance or construction.

Housekeeping Home Cleaning Services

start a business cleaning trashed out foreclosures
start a business cleaning trashed out foreclosures

Duct Mold and Carpet Cleaning Needed

In your business you want to make sure that you have a cleaning, house, office, commercial and residential service to offer your local area.

Many housing authorities around the country started to receive government stimulus money that are ideal for foreclosure cleaning companies and other real estate services companies such as appraisers, termite pest control companies, building contractors, plumbers, electricians, roofing companies, and lawn care companies.

The kind of equipment needed for cleaning foreclosed homes

You will need a dumpster as well as a cleaning supplies, it will help to have construction repair tools as well as landscaping equipment

.Use free Classifieds to get workorders

Many have found that placing an ad on a classified site on the web works well, try using Craigslist, Backpage, UsFreeAds, Recycler, InetGiant, or oodle.com

Government Contracts and Foreclosure Listings

Learn about available government contracts in your area and become a foreclosure listing agent for increased revenue.

To find government contracts to bid on you can prepare a request for proposal that qualifies you with multi-agency jurisdictions for most city and state public notices.

You can find them in your local newspapers or magazines where outside contracting is part of the agencies who help small business owners with the U.S. Federal Government guidelines for bidding on contracts and work.

As a foreclosure listing agent you will be able to connect with those in the industry such as bankers, property owners, brokers and landlords for sub-contract jobs.

Certification and training is available for those looking to become a commercial foreclosure agent by marketing and selling distressed properties for increased revenue.

Listing real estate owned properties is in high demand among investors and home buyers, many of which are assigned to asset management companies who contract out real estate agents for Broker Price Opinions to evaluate the comparative market analysis for foreclosed homes by the lender.

To get started you will have to register with companies that provide the list to BPO companies, Reo listing agents and Asset Managers.

List of Property Preservation Companies

  • American Property Management, Inc.
  • Corporate Asset Management LL
  • Cyprexx Service
  • Default Services, Inc.
  • Field Asset Service
  • First American Field Services
  • First American REO Servicing
  • FirstService Corporatio
  • Five Brothers Mortgage Services
  • Fontaine Inspections Inc.
  • Lender Processing Service
  • LPS Field Services
  • M&M Mortgage
  • Maxim Enterprises
  • Mortgage Contracting Services
  • North American Property Preservation
  • Now Property Preservation
  • REO Allegiance
  • Safeguard Properties Inc
  • Sierra Field Services
  • SingleSource Property Solution
  • Southeastern Asset Services
  • Spectrum Field Services Inc
  • Trinity Field Services
  • Wolverine Real Estate Service

Working part time cleaning foreclosures

If you are working full time and would like to clean foreclosures on the weekends this is a business that offers that opportunity.

All you will need is to contact asset management companies or real estate investors who have a list of foreclosures that need to be cleaned and maintained.

Depending on the condition of the property, most jobs can be done in one day.

Being prompt and offering quick service is what will keep your clients coming back with referrals.

Make sure to have someone who can answer the phone calls you will receive because marketing your foreclosure business is crucial and availability will be what makes your business stand out from the rest.

How to recycle and go green with your foreclosure cleaning business

Most of the items that you will be cleaning out is debris and trash that needs to be removed.

Sometimes you will find items that can be recycled and reclaimed or repurposed.

Saving the environment by green cleaing and not filling up the landfills with green materials is how you can add a little difference to what you do.

Warmer climates make for the best in dealing with keeping expenses low.

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  • profile image

    danigenise 5 years ago

    I have been trying to start an foreclosure cleaning business. I have all of my paper work, my company is LLC and I have insurance but I have no contracts. How can I find foreclosure homes to clean, and who can I contact about cleaning the homes in baltimore md. Please email me at danigenise73@yahoo.com

  • profile image

    Tricountypms 5 years ago

    Its not that easy as it looks. I got all my paper work and licenses and still no business. Maybe I'm doing something wrong. I dont know. I live in fort lauderdale and I know there are business over here. Any ideas rajsoogrim@hotmail.com

  • profile image

    billionairideas 5 years ago

    I am looking into starting this business in California. My aim is to help felons and other people that need a second chance at life find a job and provide for there family. There is very little information on what i should pay my employees, and the basic amount i should charge the banks when bidding. would anyone have any information on this? Should i operate as a sole propiertiership or an llc? what are some of the pitfalls that i may run into? and last are people really succesful in this venture or is it something where it really is connections who you know and its closed off to most and limited to a very few business who are established in this field? please email and thank you for any and all suggestions

  • profile image

    mds 6 years ago

    T be sucessful in this business you have to sign up with foreclosure companies, REO/BPO companies all over the nation. not just in your area. These companies have homes in foreclosure nation wide. You have to sign up with at least 100 companies. Follow up in a week to see if you were approved or not. 2-3 weeks business will start pouring in. Do background checks in how they pay etc

  • profile image

    outdoord 6 years ago

    Hello, I am looking to start a clean-out business in central Washington State & would appreciate any Do's & Don'ts that anybody has. Thanks for your time. outdoord @ outdoordph@gmail.com

  • profile image

    SPD 6 years ago

    Looking to get started in the business in the atlanta area if anyone has some helpful tips please contact me. DECSPD01@AOL.COM

  • profile image

    Gaston  6 years ago

    I looking into starting my Foreclosure business in San Antonio, TX. I already have applied for my business license and need any information on how to get my clients. Please email me gastongrios@yahoo.com

  • profile image

    Damien 6 years ago

    I am 18 yrs old & im getting involved in this business. Could somebody plz give me info and tips I would need to get started thanks.

    dbus1228@aol.com

  • profile image

    Steven D. 6 years ago

    Yes, good information here but I've been trying to get involved in foreclosure cleaning for about a year now. I had ONE realtor call me and I did a free bid, but then he came back and wanted me to basically cut my bid in HALF and then wait for 60 days for a payment. NOT happening! I've heard horror stories of people getting involved in this, then not getting paid by the realtors. Good luck to you all, I'm still waiting for the right "connection" in this.

  • profile image

    Barbara 6 years ago

    If their is someone in Tampa bay area that needs help with cleanout business please contact me by e-mail. I have ten years new construction cleaning experience. barbarabarbett@yahoo.com

  • profile image

    ese 7 years ago

    pls someone shud reach me on eseogbebor@yahoo.com on startg a foreclosure cleanup in nigeria.

  • profile image

    brenda 7 years ago

    pls i want to start a foreclosure company here in nigeria,can someone give me tips or link me up or better still partner with me here

  • MasterSteamClean profile image

    MasterSteamClean 7 years ago

    I am a tampa carpet cleaner / made service and also use a craiglist add for spreading the work, A call few minutes ago as well. This is a useful post ,

  • BrainSpace profile image

    BrainSpace 7 years ago from North Carolina

    Try Craigslist. I posted a short simple ad stating I do foreclosure cleanouts. So far Its been two weeks and I have gotten two calls from property preservation companies so far.

  • profile image

    LS3 7 years ago

    I think your right Bill, Because I have been trying myself.

    No luck at all. Any one already in the business that need some good help with trash outs or lawn service in the atlanta area e mail me at lscleaningservice@live.com.

  • profile image

    bill 8 years ago

    i have been trying this clean out business for 3 years. No LUCK..you got to know someone, the real estate companies do it or thier families because they are not selling property so this is thier money cow and no one else can move in.