In today’s world, we can see that there are many ways you can earn a good income apart from taking up a job and working for a company. Starting up your own business is one of those ways to begin a new way to earn a living.

Among the various businesses that we can do to earn a respectable living, starting up a foreclosure cleaning business can be a very good idea. Knowing which business to start is more important than knowing how to start it. The type of business that you can handle should be your choice.

Make the right choice by starting a business that demands less capital investment at the initial stage. Spending more and gaining less can lead you to loss and falling into debts.

Thousands of people, tired of their unsatisfying jobs, have taken initiatives to start a foreclosure clean-up business to get paid. First of all you need to have a clear concept about what a foreclosure clean-up business is.

A foreclosure clean-up business is related to cleaning up a particular place after it has been vacated by the occupants. If you have to run a foreclosure clean-up business you will need to make contacts with banks, companies and industries and tell them about your services and rates.

These banks and companies will hire you to clean-up the property they own anywhere in the city. All you have to do is get there, clean it up and take your pay. They you pay your workers the amount promised and have to keep the profit.

• What Should You Know Before Starting up a Foreclosure Clean-up Business?
• How Much do Foreclosure Cleaners Make?
• How do I Start a Foreclosure Cleaning Business?
• What is Foreclosure Cleanout?
• Can You Make Money Doing Property Preservation?
• How do I Get a Contract With a Bank to Clean Out Their Foreclosures For Them?
• Foreclosure Cleaning Business Plan
• Pros And Cons of Starting a Foreclosure Cleanup Business
• Foreclosure Cleanouts Pricing
• Foreclosure Cleanup Job Vendor Applications
• Foreclosure Cleanup Business Startup Information
• Bid on Cleaning Foreclosed Homes
• Cleaning Foreclosed Homes For Banks
• Foreclosure Cleanup Business License
• Foreclosure Cleanup Listings
• Foreclosure Clean Out Forms
• Foreclosure Clean Out Services
• How to Make $500a/week Cleaning Out Foreclosures
• Can You Make Money Buying And Selling Foreclosed Homes?
• How Much Should I Charge to Clean a 300 sq ft House?
• How do I Get Clients For my Cleaning Business?
• What is The Cheapest Way to Buy a Foreclosed Home?
• Can You Flip a Foreclosed Home?
• Why Are Foreclosed Homes so Cheap?
• How Much Should I Charge to Clean a 5 Bedroom House?
• How do You Price Cleaning a House?
• How do I Make my Cleaning Business Successful?
• Do Banks Negotiate on Foreclosures?
• What Are The Risks of Buying a Foreclosed Property?

What Should You Know Before Starting up a Foreclosure Clean-up Business?

These are the few important things you will need to know about starting up a foreclosure clean-up business:

1. The Basics: The most important thing to have before any business is a certain sum of money to invest. You need to invest the money on land, labor, materials, etc. In a foreclosure clean-up business you will first of all need a license.

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Remember that your clients are companies that are insured and licensed, therefore they will look to hire businesses that are licensed so that they feel secure working with them. Give your business a name and get it registered and licensed.

You might also need to get it bonded and protected and insured by a reliable insurance company. There are chances you won’t receive any well paying orders if you fail to get a license for your business. Second thing is to find employees.

You will need to hire people to work for you in the clean-up business. You will need to get yourself trained first and then make sure you find a way to get your employees trained as well. This is so that you don’t have to face the fate of losing further orders from the customer who trusted you.

If you need to compete and stand out from your competitors, you will need to know everything they know and be better than them. About the people that you will need to make a good team, you will need a good receptionist, electrician, painters, plumbers, mechanics, and mostly all rounder laborers.

You will have to consult with consultants supplying human resource. You will then hire these people recommended to you after you interview them. These can be professionals, contractors or simply people looking for jobs. Then pay them daily or monthly, as per your choice.

2. How to Hire/Whom to Hire: The next important task is hiring the right people for the job. Who to hire depends upon the level of work you have or you expect to have. We judge the level by the pay. If a company is paying you more than you expect them to, you need to fulfill their expectations too. Hire experience persons in this case, especially for these companies who demand quality work.

You can hire teams or individuals looking for work. Be sure to hire licensed people for major tasks, for the minor ones like individual clients looking for foreclosure clean-ups for their homes, you can hire freshers to gain experience. Don’t compromise on quality and dedication and do not think of paying your employees less because yours is a new business and a lot is gone into it.

Your employees do not about that, all they care is a good pay so that they can keep working for you. You pay well they work well, you pay less they do not perform and look for better jobs and ultimately your business doesn’t grow. On the contrary do not also waste it all on employees; if you save by hiring less experienced people and train them, the better for your business.

3. Aggressive Marketing: Marketing is the most important factor for the success of a business. Your business is a lonely bush amid trees unless you market it to make it known. You need to make this bush look beautiful and attractive so that people wish to have it in their own homes. First of all talk to a good marketing team who can ensure results within weeks.

Your business should come with a blow to the public. It should be presented as the next big thing in the town. You will need to keep aside a specific amount only for marketing because it is what gets you the orders. Unless you get the orders you cannot make a first impression. What you need to do apart from hiring a marketing team is be ready for the outcome.

Be ready with your license at display, it will surely be asked for. Be ready with a business card to offer when people come to your office. Be ready with a team to introduce in case you have to and most of all hire a good receptionist.

Male or female is not the point, you receptionist can be young or elderly but must be well experienced in handling the job of taking and making calls efficiently. It is on the phone and e-mails these days that most of the talking happens and you can’t afford to lose customers because your receptionist is a fresher and is on training.

4. What To Keep In Mind: Keep your concepts clear about the work. Nobody likes cleaning up dirt while packing other people’s things and carrying them out of a place but when it’s a job it’s a job, you have to do it. Brief your employees about the fact that the houses, areas, places they go to clean will be unexpectedly untidy and unclean and this is exactly why your business has been hired.

Motivate your team not give up on stains and stinks. The house could be filled with dirt, feces, dead animals and smell. Not always is the house vacated before you enter it. Many times you will find tenants not yet left the house. They can be hostile towards you. You might find pets left behind which might attack you.

You will need to provide your employees with the equipments that will help them to breathe and be safe in places like these. Most of the houses are not so bad, it is only in the suburbs and amid jungles you might find houses that are dangerously filled with dirt and harmful insects.

In any case you need to see that your workers are safe and are given everything they need to clean every possible foreclosure no matter what you’re being paid for it, try to make an impression so that the client doesn’t hesitate in paying you and you’re offered more work by the same client.

Charge less to gain customers and perform well to gain their confidence. Yours is a new business so you first need to build a name for your business only then you can demand amounts that will earn you large profits.

5. The costs: To start a foreclosure business you don’t need much. All you will need to spend for is equipments, printing business cards, and marketing before the business is commenced. Paying the employees and for the rent of the office comes after a month has passed.

Registering and licensing may take some time and money but that is essential and equal for every business. Let’s consider all the costs clearly and accurately. Starting with the most important; equipment cost. Equipments can cost you a lot if you do not purchase them from a wholesaler. You will need to spend on equipments so it is better you contact the wholesale market for it.

You can also purchase second hand equipments to cut the cost. Look around for websites selling second hand cleaning equipments. The second cost that will hit you is the transportation cost. You will need a vehicle. You can either purchase this vehicle or hire it. Keep in mind to take in a vehicle that is not too big nor too small, you don’t need a stylish vehicle here, it can be second hand that doesn’t matter but it should be able to go safely into tiny, narrow lanes.  

This vehicle should be like a small pick-up that can carry your tools and equipments that you will use in the process of cleaning up. After the clean-up this vehicle should be able to take away things that you are told to deliver and also hold your equipment and the workers.

The other cost is of the training and time spent in training. You have to be the best to gain good orders. You will need to spend for enough knowledge about which equipments to use and how and where to use them effectively. This is though a good way to start before jumping into it with no knowledge.

6. About Foreclosure Clean-Up Jobs: There is a dead-heat competition going on in the foreclosure clean-up business, yet due to less time and adequate resources, cleanup companies have to give up on orders. This leaves away jobs for others looking for them. Your business will gain from this overflow of jobs.

Thousands of house owners are being asked to vacate their houses due to people not being able to clear their mortgages and loans taken from banks. The banks ask them to vacate the house and you’re hired to clean-up the foreclosures. There are therefore great opportunities if you plan to start a foreclosure clean-up business to get paid.

Without worrying you’re sure to have clients contacting you once your company is registered and licensed. All you have to do is have aggressive marketing done and hire the right people. Banks and Companies are always on the lookout for better service at lower costs.

What happens with established clean-up businesses is that they have gotten a name for themselves and they charge more than they give. This should not be the case with you as you’re only a start-up for the first few years and you need to concentrate on getting orders more than getting paid. For them who believe in working with full dedication there are jobs always available in the market.

7. Deliver the Best: Where your business will be in the next five years from the start is all upon how you work on it. How hard you work on it, how dedicated you are towards it. After knowing the pros and cons of the business you need to ask yourself if you still have interest in the business.

Lastly, the most important function you need to perform is delivering the best to your clients. When you take up a job, try your best to immediately start up with working on the project. Any delay may cause the client to discontinue with you in the near future. Delays may also lose you the job in your hand. The turnaround has to be instant and active.

A positive attitude towards even being paid low can impress your client and you grow slow so you mustn’t plan to leap to high in the beginning. Make sure you aren’t only trying to make money but a career and a future out of starting up this foreclosure clean-up business to get paid, and be paid well for your hard-work.

How Much do Foreclosure Cleaners Make?

Often weekend work is involved and some properties require a lot of work before they are in selling condition. However, the jobs pay well, often averaging between $500 to $2,500 per house. Another way that foreclosure cleaners make extra money is by selling things that have been left behind by the previous homeowner.

Foreclosure cleaners often earn a whopping $500 to $2,500 per house that they clean.

Secondly, how do you clean an abandoned house? When residents leave a foreclosed home, they may abandon furniture, leave trash or destroy parts of the property.

1. Determine whether you need a license and insurance.
2. Consider whether to take “before” pictures.
3. Evaluate the condition of foreclosed homes.
4. Remove the junk.
5. Inspect the water, plumbing and electricity.

Also asked, what is foreclosure cleanup business?

There are companies springing up across America called Property Preservation Companies, whose core business is the cleanup of foreclosure properties. Their services include interior cleanup, yard cleanup, hauling of rubbish and debris, lock changing and other general cleanup of the home and yard.

How much should I charge to clean foreclosed homes?

Direct Foreclosure Cleaning Costs Total: $650 And, let’s say you plan on doing at least one job a week, starting part time. So, your indirect costs per month are $166 ($2,000 / 12 months). So your indirect cost for each job is $41.66.

How do I Start a Foreclosure Cleaning Business?

You really don’t need much to start your own business. A business name, phone number and maybe a simple website are it requires. Once you are ready, start bidding on cleaning foreclosed houses to banks!

In the years immediately following the Great Recession of 2008, U.S. residential foreclosures soared, reaching an all-time high in the fourth quarter of 2010. This created various business opportunities, foreclosure cleaning services among them. By 2016, however, the housing market had substantially recovered, and foreclosures reached all-time lows.

These days, about all you really need to start a foreclosure cleaning service are business cards, a cellphone and a variety of good business connections. Think of yourself as a specialized foreclosure cleaning contractor. You’ll hire suppliers of every service that the foreclosure cleaning process requires.

In most cases, as you’re starting up, you’ll need several suppliers of services in each category. From each, you’ll get a competitive bid. These might include trash haulers, cleaning services, locksmiths, handymen and independent construction contractors.

It’s a good idea to line up these service persons before seeking business. You never know when you’ll need to give an estimate or make a bid.

There’s no one best way to get your business started, but try these:

• Attend foreclosure auctions. Every winning bidder is a potential customer. Distribute your business cards, and talk to as many of the winning bidders as possible, briefly explaining what you do. If you have a well-written single-page handout with quoted kudos from past clients, all the better. 
• Search for real estate agents who specialize in foreclosures. Go online and query “recent foreclosures [your city or geographic area]” and “real estate agents selling foreclosure properties [your city or geographic area].” Phone them and offer your services.
• Phone local banks and ask to be connected with a bank officer handling foreclosure sales. Offer your services.
• Contact the seller and offer your services whenever you see a property with a foreclosure sign.

Closing the Deal

When you’re selling anything, closing the deal is paramount. If the foreclosing party offers you a flat rate before you’ve seen the property, say something promising without it being an actual promise: “Look, that’s sounds good to me, and I think I’ll take it. Give me an hour or two to inspect the property, and then I’ll confirm the deal.” If the amount offered clearly isn’t adequate, don’t turn it down; make a counteroffer.

Once you and the client have an oral agreement, give that client a written letter agreement confirming the deal. With foreclosures, it’s a good idea to have the letter state that you are relying on representations made by the foreclosing party that they have a legal right to enter the property and dispose of any remaining goods and that you are acting on behalf of the foreclosing party.

What is Foreclosure Cleanout?

A foreclosure cleanout is exactly as it sounds. It refers to cleaning out foreclosed properties, usually involving the removal of old furniture and appliances as well as junk and other types of debris left on the property by the previous owners.

Foreclosure cleanout services are usually needed when a property has foreclosed, but it can also apply to vacant or abandoned properties. This type of service is also not exclusive to single-family homes or townhomes. Just about any type of property or unit can benefit from a foreclosure cleanout, including condominiums, apartments, and even commercial establishments.

A foreclosure cleanout is similar to an estate cleanout as well, but they are not exactly identical. Whereas the former is a term typically used when it comes to foreclosed homes or properties where a tenant has been evicted, the latter refers to cleaning out estates normally due to the death of the homeowner.

An estate cleanout can also happen if an owner wants to downsize their estate due to any number of reasons or because of a divorce settlement.

Can You Make Money Doing Property Preservation?

Property preservation companies are responsible for managing the needs of a foreclosed residential or commercial property. They provide services such as renovations, maintenance, or repair, and cleaning services, just to name a few.

As someone who wants to venture into a property preservation business, it is essential to know the possible challenges you may face. At the same time, you will also learn how to manage the pressure on doing the job. As such, here are some reasons why property preservation is a profitable business.

Increasing the number of your properties will increase your profit as well. Every additional property that need servicing will fall towards extra revenue. Keeping properties in good shape will help them retain their value. Properties in tip-top status will also reduce tenant maintenance calls.

Property preservation is a tough but profitable business. The challenges in this industry are quite normal and some are fairly easy to resolve. A lot of entrepreneurs in the field of property preservation to turn around these challenges and earn a profit instead. Property preservation business requires dedication and hard work. 

Remember, the more properties that you handle, the more revenue you can expect. Training your employees isn’t also a problem. Just be open to any workshop or seminar so they can improve their skills or you can opt for an Outsourcing company. Property Preservation is indeed a lucrative business once you do it through the right measures.

How do I Get a Contract With a Bank to Clean Out Their Foreclosures For Them?

When a bank forecloses on a house, the bank takes physical possession of the house and all of the previous owner’s belongings must be removed. Banks do not handle this themselves, but before you can get a contract providing clean out services for a bank’s foreclosures, you need to understand who hires the contractors and what they expect.

REO stands for “real estate owned” and is the section of the bank’s operations responsible for dealing with homes that have been repossessed and are being held by the bank. These properties represent a significant loss of income to the bank, and they normally want to sell them as quickly as possible.

New properties in the REO department are those most likely to need cleaning out, and contractors who can provide quick action and fast turnaround on new holdings will get the bank’s repeat business.

Clean Out Basics

When you start a clean out business, you need to have a good understanding of what you will be expected to do. Bank REO officers will be certain to ask you what your services cover. In most cases, when banks are seeking someone to handle cleaning out a foreclosure, they want someone who will completely clean out the inside of the home, including closets, cabinets and drawers.

Everything has to go, whether it is trash, abandoned furniture or something in between. When you talk to bank personnel, be clear that you provide complete clean-out services, and be prepared to provide a time frame as well.

Make sure to clarify clean-out needs. Are you simply removing all items in the house, or does the bank want a service to also clean floors, walls, windows, etc. Be prepared to be responsive to the bank’s needs.

Business Permits and Requirements

A bank won’t work with you unless they are sure that you comply with all laws and that you have adequate insurance. The U.S. Small Business Association has detailed permit information for each state, or check with the county or city office that issues business permits in your area for more information.

The bank’s REO officer will also need proof of liability insurance that will protect the bank in case you damage the home, and the bank may also require you to have workers’ compensation coverage if you have people working for you.

The amount of insurance required varies by area, so check with a knowledgeable business insurance agent in your state to make sure you have enough coverage. A bare minimum amount of coverage is $250,000, but the bank may require you to have more.

Approaching Banks for Business

Once you have everything in place, contact the REO officer at banks in your area. Make an appointment to talk to her personally, so that you can get to know her. Find out what the bank’s needs are and discuss how you can help to fulfill these needs.

Be prepared to show them what you can do that the others cannot do, whether it is to provide the same service at a lower price or offering additional services, such as carpet cleaning, at the same price point.

Provide the REO officer with your business card and with flyers showing work you have done in the past, as well as any references. Some banks will have you sign up with them online, where you can list the specific services you offer as well as the various zip codes where you are willing to work.

This can work well if there is not much competition, but a personal visit to the bank will help to set you apart from the others. Continue to contact the bank REO officer on a regular basis, about once a month, until you are offered a contract or given a flat refusal.

Foreclosure Cleaning Business Plan

As you work on foreclosed homes and see what is needed for a superb job well done cleanup, you will begin to build your formula and processes of what you actually use and what you may not need. With your cleaning services only offer what you can afford to deliver.

In the beginning, when you are renting use the profits of each job to save some for your own tools and equipment such as ladders, seasonal tools, outdoor equipment, and anything else you know you can make use of. Look around for the best prices online and offline. Search around your local area tools stores and I’m sure you can find some quality used tools still durable and long lasting.

Is Subcontracting Part of Your Foreclosure Cleaning Business Plan

As you grow, how will you leverage? If you are a lead generating machine then use the helping hand of a subcontractor to get jobs done without accruing too much costs. Play the foreclosed cleaning business system safely especially if you just cannot get the job done due to lack of tools or resources.

Reach out to proper experts in the plumbing, electrical, repair, and painting business for extra help and outline your terms and percentages for each contract if you cannot handle the business.

Take Your Online and Offline Marketing Seriously

Now that you have figured out your tools of the trade the marketing begins. In today’s world, marketing online and offline while combining the two can create a serious buzz around your foreclosure cleanup business.

Everyone who you are going to do business with in the cleaning of foreclosed homes niche will be constantly searching month after month for who to hire to clean up the vacant foreclosed homes. As you begin to build your business on the cheap write down your goals and how you will get there so every foreclosed home cleaning job counts.

So for a business owner that needs foreclosed home business, their duty is to focus on improving the visibility within the search engines for more targeted qualified business. Realtors, bankers, and investors is who you are targeting and that’s who is searching online daily, so be sure to follow these helpful tips so you can gain more contracts and build yourself residual income.

Pros And Cons of Starting a Foreclosure Cleanup Business

There is a lot of information out there about starting a foreclosure cleanup or REO trash out business, but what about the not-so-pretty side of the foreclosure cleanup industry?

Here are some pros and cons to consider from someone who’s already out there:

PROS

1. Easy, low-cost startup. Foreclosure cleanup is an easy business to start. At first, all you will need to do is a little initial research; get your license, tax ID, and insurance; and order some business cards.

You can start small, offering services such as lawn maintenance and interior cleaning. These will only require minor equipment that you may already have in the garage or at home. Once you are established, you can go ahead and buy more and more equipment as necessary. The foreclosure cleanup or REO trash-out business is an easy startup with minimal cash outlay, but be prepared for some hard physical work along the way.

2. You are your own boss. This is a business, not a job, and it’s up to you how much and how fast you grow it. You are the one in charge. The foreclosure business is constantly changing, and it’s up to you to adjust your business accordingly. You can grow slowly and handle everything yourself – with help from family and friends – or you can outsource to other companies and grow quickly.

3. You can “factor” your invoices. This means that instead of waiting to get paid, you can sell your invoices to a company who will do the waiting for you. They will pay you the value of the invoice within 24 to 48 hours, minus a certain percentage that they will keep as their fee until they are paid themselves. Be aware, however, that approval for factoring is based on the credit of the company who owes you the money, not your credit.

4. You don’t need any office space. It is easy to start a foreclosure cleanup or REO trash-out business from home, and as your work is mainly in the field, this can be a relatively small area that will have very little impact on your home space.

5. You can remain profitable even after the 2008 foreclosure crisis is over. Choose your business name carefully, and don’t restrict yourself to only foreclosure business. When foreclosure work is slow, your existing client base will use you for property preservation and maintenance type services for their regular, non-foreclosure properties. Real estate is dependable. Yard maintenance, minor repairs, cleaning, and debris removal services will always be in demand while houses are being bought and sold.

CONS

1. One con is waiting to get paid. Many banks can take up to 90, or 120-plus days to pay a simple invoice. If you don’t have the cash flow to bankroll a job, and you’ve decided not to factor (sell) your invoices, this wait can be crippling for a small business.

2. Your business depends on the efforts of others. As your business grows, you will need to outsource, but if people don’t show up on time or do a bad job, it’s your business image that will suffer. If someone gets injured on a job, it’s your insurance that will be paying for it.

3. You won’t get rich quick. The foreclosure cleanup business is one that grows over time with repeat customers. It is important to position your business well from the outset so it can thrive after a foreclosure crisis. You don’t want clients to only associate you with foreclosure – you want to be doing repairs for them at new listings as well.

4. You need to be organized. Foreclosure cleanup is heavy on paperwork. If you’re doing things right, you’ll have all kinds of paperwork to deal with such as contracts, receipts, property stat printouts, invoice sheets, and more. You need to stay on top of this paperwork if you want to retain control of your business.

5. It is hard work. Foreclosure cleanup is manual labor, and the work can be back breaking. This is especially true in the beginning when you will be doing most of the hard work yourself.

Foreclosure Cleanouts Pricing

There is no universal dollar amount that answers this question. Every company or professional service charges differently, and it really depends on the services included. Some companies offer packages, while others use an a la carte setup.

Another factor that can affect the cost of the foreclosure cleanout service is the size of the job. If the foreclosed property is rather large and there are many items to remove, expect the price to be higher.

The same goes for if there are a lot of damages to repair. On average, though, a foreclosure or vacant house cleanout can cost you anywhere between $110 to $650 for basic services.

Foreclosure Cleanup Job Vendor Applications

The property preservation business can be a rewarding career that pays well if you take an appropriate path. Options include working for asset management companies or running a firm that contracts with HUD, lenders, realtors or investors. Here are details on how to become a property preservation vendor.

Here’s an overview of a plan to start a preservation company:

1. Check the state and local license requirements in your area.

Not all states require licenses. Property preservation in itself doesn’t require a license, but the jobs you do might: general contractor licenses, plumbing licenses, roofing licenses, electrical licenses, etc.

Some counties/cities will require local licenses as well (i.e. a local contractor license as opposed to a general contractor license). Some states require things like mold certifications. So do a little research as your very first step before actually deciding to jump into the industry.

2. Check out the competition.

There are a lot of preservation companies around, and you don’t want to be covering an area where there are 500 contractors who just get a handful of work orders a month. Assess whether there is a competitive opportunity for you in your area.

3. Apply for property preservation contractor positions

Pro tip: you can get job alerts from your area by signing up to our preservation vendor directory. Most preservation businesses who are just starting out won’t go directly to a “national”, due to the large amounts of paperwork and the required investment to actually execute jobs that might be out of their league.

So to begin with, you might want to look at who the regional preservation companies are, or maybe even smaller, family-run / mom-and-pop property preservation businesses and see if there are any positions open with them.

4. Go through the hiring interviews.

There will likely be an interview process that you must go through before you actually sign a contract. Hiring companies will require that you hold certain types of insurance (including work compensation insurance if you have any employees or people helping you part-time) and apply for certain licenses, but most of them won’t require these things before interviewing you, so you don’t necessarily need to purchase anything before the interviews.

5. Apply for all relevant licenses, insurance types and certifications.

Review what you learned in step 1; at this point you’ll need to actually apply for these! How much will this cost?

6. Purchase some property preservation supplies.

Especially PPE (personal protective equipment). As a property preservation specialist you’ll be exposed to abandoned properties, run down houses, hazardous trash, and you need to take care of your team.

Even simple things like mowing the lawn can be -to an extent- dangerous, and you need to be covered. Your insurance company will certainly appreciate it, let alone people who are working with you. This is an important point, and ignoring it might expose you to legal liability.

7. Go through training.

The good news is that many hiring companies, especially larger regional, state-wide or national preservation companies have very standardized training programs and detailed onboarding processes for vendors where you’ll be taught how to proceed with different field services and what’s expected from you.

Most of them use their own software or computer systems where they manage work orders and you’ll be required to submit proof of your work through these. So training also entails getting to know and operate these systems.

Foreclosure Cleanup Business Startup Information

A foreclosure business actually has several forms but the simplest is the foreclosure cleaning business because it is very easy. Because of the fact that there is a high rate of foreclosed homes in the entire nation, these properties need to be maintained, repaired and cleaned up for resale.

To get started, you will need the following equipments that can contribute to your success in this business: fax machine, copier, scanner, digital camera, clip board, internet connection, computer and cell phone.

After knowing the things and equipments that you need, proceed to the next step by developing a well-organized business plan. In order for you to create an excellent business plan even though this is just your first time to draft one, you can visit a reliable website just like score.org.

Next, you need to decide on the business formation which you will use such as Corporation, LLC, Partnership and Sole Proprietorship. To make the clients know what kind of business you have, you must also indicate it in your chosen business name.

Aside from being catchy, you must also see to it that clients will easily remember it. It will be the REO Agents which will send you more work. To make everything in legal order, you also need to completely file all the required forms and documents.

Next, you need to get a business license from the Country Department or from the local city. This won’t cost you that much because it is just less than $100. After the business license application, you need to open up a business account.

You must also do the best that you can to get the excellent deals. So, you need to get more quotes for your liability insurance. A bank contact list is also needed for you to save a huge amount of your money and time.

By getting a REO Bank Contact list, that can only be the time for you to have your business registered with lots of banks to be their vendor. Zip codes are also very necessary to be included because this is the manner of assigning of the REO Asset Managers.

The work order will be sent through email so you need to always be on the lookout in your inbox. Being on time and doing the job well can lead to more work and green bills as well.

Bid on Cleaning Foreclosed Homes

Don’t bid on cleaning foreclosed homes until you have reviewed the properties you’ll be working on. Unfortunately, it is not unusual for banks, buyers or real estate agents to understate the amount of work needed to clear out a property. When considering a property bid, take into consideration the size of the property itself as well the nature of the property that needs to be cleaned or removed.

For example, if you will be hauling out large appliances, such as refrigerators, stoves or washing machines, you will need a larger crew and perhaps special equipment for removing these items safely. You will also need to consider what junkyards or recyclers will charge you for disposing of these items.

Other considerations include the number of crew members you will need for the job, the length of time that it will not only take to complete the job but also transit time to and from the job site as well as waste disposal facilities.

Cleaning Foreclosed Homes For Banks

The commercial cleaning industry provides opportunities to perform services for a variety of clients. Owners of medical facilities, car dealerships, office buildings and banks rely on commercial cleaning services to keep their businesses looking good and free of excessive debris that can cause germs.

Banks are desirable cleaning accounts because in most cases there are fewer employees and a smaller area to maintain compared to other types of commercial businesses. Outsourcing has become a practice for banks that plan to reduce costs and these trends increases the opportunities for janitorial firms to procure more cleaning contracts.

Market your cleaning services to local banks. Distribute promotional materials such as flyers, brochures and postcards to banks in your market area. While mailing these items can save time, consider walk-in presentations to promote your commercial cleaning services.

Your marketing material should highlight services that would increase the aesthetic appearances of the bank such as window cleaning, dust removal and floor care.

Make an appointment to speak with a bank’s branch manager. Small banks will typically give the branch manager decision-making authority. Approach smaller banks or credit unions that have fewer than five locations to obtain your first few appointments.

Additionally, you should speak with the branch manager where your business bank account is maintained about cleaning services. These engagements will give you details of the general cleaning expectations for banks and increase your confidence to approach larger banks.

Sell your commercial cleaning services. Each appointment that you set up involves precious time that you and a bank manager have reserved to discuss commercial cleaning services. Your job will involve securing a contract for services needed by the bank. Emphasize your ability to deliver exceptional cleaning services that will be performed as scheduled.

Get your commercial cleaning contract signed. Ask for an opportunity to provide the desired services. The banker’s acceptance of your cleaning services should be documented. A contract that details all aspects of the services to be performed and the expected compensation will provide clarity for you and the bank.

Ask for referrals. In nearly every industry, managers are aware of subpar facilities. Ask your banker and others about bank lobbies that could use improvements. Visit these locations and speak with the branch manager about your cleaning services. Offer a trial service or special discount if necessary. Present your proposal to get a signed commercial cleaning contract.

Foreclosure Cleanup Business License

Foreclosed houses are often left in less than optimal condition by their previous tenants, and banks pay generously for the TLC needed to render them suitable for resale. The licensing you need to start a foreclosure clean-out business, also known as a trash-out business, is minimal.

Tough economic times are known for leaving hardship in their wake, but they can be good news for entrepreneurial handypersons with a sense for opportunity.

Business License and Tax ID

You need a license to operate a business in all parts of the country. According to the U.S. Small Business Administration, you can find out what kind of license you need and apply for it, by consulting the office of the county clerk. In addition, you’ll need a Federal Tax Identification Number, especially if you plan to hire employees.

The number, known to the Internal Revenue Service as an Employer Identification Number, can be obtained directly from the IRS through its website. Even if you don’t have employees, you must obtain an EIN if you operate your business as a partnership or corporation.

Consider a Contractor’s License

Most foreclosed homes require, first and foremost, cleaning and trash removal, but there are often a number of maintenance and small construction jobs that must be done before the homes can be resold. These tasks may include rekeying the locks, fixing broken doors or windows, painting and basic yard maintenance or landscaping.

While major repairs aren’t usually in the purview of a foreclosure clean-out operation, many offer routine maintenance and small construction jobs as part of their service. These small handyman jobs usually don’t require a contractor’s license, but if you have one, you’ll be able to tackle larger jobs and offer a more comprehensive service.

Waste Disposal and Permits

In most communities, you won’t need a permit to dispose of trash, although you should remember to factor disposal fees into your operating costs. Some states, however, require a permit for the transportation of hazardous materials, and you may need such a permit to haul old cans of gasoline, kerosene, paint thinner and other flammable or toxic materials left behind in the house.

Moreover, you may need a separate permit to dispose of these materials. Consult your local waste authority to find out what permits are required in your area of operation.

Bonding and Insurance

Most banks won’t work with a foreclosure clean-out company that isn’t bonded and insured. Insurance not only protects the bank from liability in case of accidents and injuries that happen while you are working on their property, it also protects you.

Moreover, during the course of a clean out, you may inadvertently throw away something of value, and you should have insurance that protects you from legal actions to recover damages for such an event. Your insurance should also protect you against liability if the house gets damaged while you are working in it.

Foreclosure Cleanup Listings

Foreclosure is a process whereby the lender (bank) takes back a housing property to settle for the owner’s debt. Most times, investors take loans from financial institutions, like a  bank, to invest in real estate properties based on an agreement.

When the investor fails to fulfill his end of the deal, the bank takes back the house and puts it back on the market. This is how they get their money back from the investor.

As a cleaning company, getting in business with realtors who work hand-in-hand with banks can improve your outreach.

We will now talk exclusively on foreclosure cleanup listings, how to get cleaning contracts from listings

After an investor breaches the bank’s agreement, the bank takes control of the property and puts it on the market. That’s a green light for cleaning companies to approach the bank for cleaning contracts.

However, many people lose the contract because they are unaware of the requirements.

You need to understand who is in charge of the foreclosure listings, what they check (their requirements) and how to go around it.

What are REO Properties?

“REO” is an abbreviation for Real Estate Owned. The bank has a section dedicated to handling foreclosed properties. The bank has lost some money, so they are hoping to get it back very fast. 

The REO department is in charge of the foreclosed housing properties. You are likely to get a cleaning contract from the REO department. These pointers may give you an edge while negotiating a foreclosure cleaning contract 

• You need to understand the bank wants to sell the houses quickly, so they are looking for a cleaning company with a fast turnaround time.
• The REO department is looking for a crew whose services will include a deep cleaning of the entire property.
• Be ready to offer the total cleaning package. That includes labor, deep cleaning, and so on. The REO department wants a cleaning company that is ready to work extensively. 
• Get your business permit and insurance. A bank will never work with a company that doesn’t have a business permit or coverage. A business permit indicates that you are allowed to offer cleaning services in the state. A coverage shows that your business is covered peradventure you damage something while cleaning.
• Lastly, approach the bank with a professional guise, showcasing your flyers and past jobs as reference.

Foreclosure Clean Out Forms

Normally, the bank will take steps to clean and secure the property until a real estate agent can succeed in selling the house. Unfortunately, not every banking institution puts forth the same efforts at cleaning and oftentimes the task is passed on to, or left up to, the agent.

When a home is left in a clean and debris-free state, the cleaning often requires little more than sweeping, dusting and possibly mowing the lawn. This is assuming, of course, that the foreclosure and sales process is completed within a relatively short period of time.

However, the reality is that the foreclosure process can take upwards of two and half years. In fact, at the end of 2017, the process was averaging almost three years, or 1000 days. And during this time, while not all those homes are vacant, many of them are.

This means that the property really needs to be maintained and periodically cleaned until it is able to be put on the market.

Here is a handy foreclosure clean-out checklist to aid in the process for those who find themselves needing to undertake that task.

One of the best things about this type of project is that there are many professionals available to assist in the work.

For the cleaning portion it is not at all unusual to hire professional firms specializing in foreclosure and estate clean-outs. It is crucial to thoroughly vet your final choice, however, as this industry has been unfortunately plagued by a number of “bad actors” that have caused many problems for banks and real estate professionals over the last 10 years.

The outside of a property is just as crucial as the inside when it comes to proper presentation of a home for sale. Many competent landscaping and lawn maintenance companies are usually available if and when there are substantial outdoor areas to be cleaned and “spruced up.”

Finally, there is likely to be junk that has to get hauled away.

In some cases, there may be excessively large items or volumes of trash, old furniture and household goods, or other junk that requires a team of professional junk haulers. 

Foreclosure Clean Out Services

The foreclosure cleaning process generally involves a thorough inspection of the property to determine the scope of the job. This inspection will also allow the professionals to prepare the right tools and equipment.

After that, the planning phase will begin. This phase involves carefully laying out the work that needs to be done per room as well as planning out strategies for waste disposal.

Then comes the cleaning out proper. At this point, professionals will clean out the foreclosed property according to the plan previously set. Usually, large and bulky items are the first to go, followed by general junk and other trash. If at all necessary, the cleanout service will also involve removing old materials such as flooring, carpets, walls, doors, windows, and other fixtures.

After that, any minor damages will be fixed and interior cleaning will take place. This entails vacuuming, dusting, and mopping, as the removal of debris will likely produce a lot of dirt and dust.

Following interior cleaning, exterior cleaning and yard work will then occur. If included in the services, fixing structures such as roofs, decks, sidings, and fences will happen last. Keep in mind that the exact services will depend on the company you hire to clean out your vacant property.

Foreclosure cleanouts are comprehensive and involve the removal of a variety of items, including but not limited to the following:

• Appliances
• Electronics
• Furniture
• Mattresses and other upholstery
• Trash
• Yard waste
• Construction waste
• Hazardous waste
• Any other items or debris

How to Make $500a/week Cleaning Out Foreclosures

Those looking to start a foreclosed home cleaning business need a flexible schedule. Banks often need cleaners at a moment’s notice and work needs to be completed on a strict turn-around.

Often weekend work is involved and some properties require a lot of work before they are in selling condition. However, the jobs pay well, often averaging between $500 to $2,500 per house.

Another way that foreclosure cleaners make extra money is by selling things that have been left behind by the previous homeowner. You obviously want to check with the client, but often times they’ll ask you to clear out anything left behind in the house. It’s your choice whether to dump the stuff, keep it, or sell it.

The good news is that you don’t need much to start this type of business. All you need is a telephone number where you can be contacted and some cleaning supplies. The crux of business success is getting jobs. To accomplish this, you’ll need to do a bit of networking.

The best place to network is with real estate agents who specialize in selling real estate owned properties. They aren’t too difficult to locate. Simply call up local realtor offices and ask for the agents in charge of selling foreclosures. It might take some selling to get listed their cleaning vendor list, but if you have a competitive price and flexible schedule, there is no reason you can’t make in-roads.

While realtors are your best bet, you can also advertise on websites that have cleaning service directories. Also, it can be useful to contact local banks directly and reach out to real estate law firms. All this doesn’t guarantee that you’ll get cleaning jobs, but banks won’t know how to reach you if you don’t advertise.

However, with payment of $500 per house, you won’t need many jobs to earn a little extra money.

Can You Make Money Buying And Selling Foreclosed Homes?

Those foreclosure programs you see on TV make the foreclosed housing game seem way more exciting and entertaining than it actually is. But, if they’ve convinced you it’s an easy way to make money and you’re looking to take a shot at it yourself, there’s a lot you need to know.

Buying, renovating and selling a foreclosed house is incredibly profitable for some, but be warned—it’s a complicated process, and the potential to lose a lot of money is very real.

So how can you buy and sell a foreclosed house in such a way that it’s likely to be a profitable venture?

Know market values

Your entire foreclosure adventure will rise and fall on your knowledge of the market area where you’re purchasing the property. The more you know about values in the area, the greater the likelihood of success.

A foreclosed property has two values—the purchase price you’re likely to buy the house at, and the market value that the finished property is likely to sell for. The difference between the two will determine how much money you should spend on rehabilitating the property, and how much profit you can expect to make on the trade.

There are different ways you can make this determination. A quick method is to use online resources, such as Realtor.com and Zillow.com. Both sites provide a “high altitude” look at the value of a property, or at least the general neighborhood.

That’s a good starting point, but you’ll have to drill down deeper, eventually. If you plan to make an offer on a foreclosed property, you’ll have to have a more accurate picture of what the specific completed value is likely to be. The best source for this information is a trusted real estate appraiser. With just the address, an appraiser can determine final market value based on sales of comparable homes in the area.

This is not a formal appraisal, since the appraiser will not be inspecting the property. However, you’ll want to develop a relationship with an appraiser who can provide you with quick summary values that can help you determine if a property you’re interested in is a solid deal.

Appraisers normally charge between $300 and $500 to do a full-blown appraisal. But you can likely get an appraiser to provide summary reports at a greatly reduced rate.

Buying and selling foreclosures profitably is not as clean or easy as they make it look on TV.

Do your research and make any advance preparations. If you want to try your hand at a foreclosure but don’t feel entirely ready, consider taking in a partner who has experience in previous deals.

Foreclosures can be incredibly profitable, or they can turn into unmitigated financial disasters. What you do in advance can make all the difference.

How Much Should I Charge to Clean a 300 sq ft House?

House cleaning costs vary depending on numerous factors like the home size and the level of cleaning required. The national average is between $150 and $250 for this service, with most homeowners paying $221 for a standard one-time clean of a 2,000-square-foot home.

House cleaning companies typically charge per hour or provide a total quote based on the number of rooms in your home. Others charge per square foot, and the more square footage to clean, the more you will pay. The price is also influenced by the type and intensity of the cleaning required.

Home Sq. Ft.	Standard Cleaning	Deep Cleaning	Move-in/Move-out cleaning
1,000	$80 to $100	$150 to $200	$160 to $210
2,000	$130 to $170	$220 to $260	$230 to $270
2,500	$150 to $200	$240 to $290	$250 to $300
3,000	$180 to $220	$290 to $340	$300 to $350
4,000	$240 to $300	$340 to $390	$350 to $400
5,000	$270 to $330	$380 to $440	$370 to $450
6,000	$300 to $350	$440 to $490	$450 to $500

How do I Get Clients For my Cleaning Business?

Starting/buying a cleaning business is both exciting and scary, but the scariest part is figuring out how to get house cleaning clients, and then retaining them.  The good news is that your cleaning business already has a specific clientele you can appeal to, and there are more avenues than ever for advertising and communication.  

Before you get started, there are a few things you should know about how to get clients for a cleaning business. 

Developing a Marketing Plan

Knowing how to get clients for a cleaning business takes strategy.

First, figure out who you’re trying to reach and what precisely those people want.  Then consider the best avenues to reach those people, whether through newer means, like social media, or just putting up flyers at your local deli shop.

Cleaning businesses have specific clientele, which can include corporate companies, event centers, busy families, and homeowners.  If you create a Facebook or Instagram business page, you can create affordably-priced ads that cater to any of those specific groups. 

Be sure to take a simple approach to each ad you create.  Focus on main selling points in one ad, and focus on customer testimonials in another; the more clear-cut, creative, and simple your message, the better.

How to get cleaning clients also means printing business cards, especially if you plan to attend conventions or fairs.

Customer Referrals

Asking for a referral might be daunting, but it’s a surefire way of how to get cleaning clients fast.

Here’s a secret on how to get commercial cleaning clients: don’t try to be a salesperson.  Just be human.  We all need help sometimes, and there’s nothing wrong with asking for a favor as long as you are polite about it.

Referrals can come from anybody you know, such as friends, family, even old clients.  But you have to solicit them actively.  Knowing how to get commercial cleaning clients means not waiting for someone to find you and possibly refer you.  The easiest way to get referrals is to ask previously satisfied customers.  They can refer you with confidence, and also detail what your service does best.

Similarly, you can use these referrals to create testimonials for your business’s website.  The more positive reviews you have linked to your website, the more likely it is that a potential customer will look into your services.  

Coupons/Discounts

Most people will not try out a product or service if they have to spend a lot of money or time.

How to get cleaning clients to try your service means offering a coupon or discount every so often.  

Companies will typically offer a discount for a customer’s first service. Not having to spend as much money as a regular customer can make a new customer feel special and more inclined to try it.

Lots of businesses also employ the “buy one get one free” or “bring a friend” discount, which encourages people to bring their friends, doubling the number of customers.

Recycling Marketing Campaigns

Some customers are attracted to companies that support worthy causes, such as recycling.  Cleaning companies use materials, like plastic and certain chemicals, that can potentially damage the environment, which is why most cleaning companies promote using environmentally friendly cleaning supplies.  

A cute environmental slogan might also be how to get commercial cleaning clients.  If a cleaning company can keep a building clean, then they–and their customers, possibly–can help keep the planet clean too.

Such a campaign could coincide with Earth Day every spring.  You could host a charity event or sponsor a local fun run to not only celebrate the holiday but encourage the participants to consider fun ways to help the environment.

Optimize Your Website Content

Knowing how to get cleaning clients means first deciding who your ideal client is.  Then figure out what questions they might have and how you can provide the best possible answer.  Google Analytics and other SEO tools can help you narrow down what keywords will lead potential customers to your site.  You want to be the expert in your field, with the answers your clients need, so do your research.

Make sure your website is easy to navigate and invites users to interact with it.  If you have written content, like blogs, keep it friendly and concise.  Most businesses will link to their best testimonials, and also have a few eye-catching graphics.

Social Media

Having a robust online presence is also how to get cleaning clients fast.  A website that gets customers’ attention and explains your services is essential, but social media can sprinkle those services all over the Internet in fun and different ways.

One advantage of social media is the plethora of communication avenues you can utilize.  You can video-blog about your daily business routines on YouTube or share pictures on Instagram, Facebook, Pinterest, or Twitter.  Since most social media outlets have a direct-messaging feature, you can also directly reach out to your followers and vice versa.

Keep in mind where you think you can best reach your clients.  If most of your clientele is not using a particular social media outlet, it might not be necessary to create a page there.

To keep your online presence fresh, decide how often you want to post new content.  Some businesses ambitiously upload new pictures, videos, or blogs every day, while some might do so only two or three times a week.  Either way, regularly uploading new content keeps your business fresh in your followers’ minds.  

Setting up Facebook ads is also a great way to expand your reach and grow your business. Here are some of the best Facebook ad ideas to help you get started.

Building a Professional Network 

It’s one thing to know how to get cleaning clients fast, but another knowing how to build a professional network, which you’ll mostly accomplish by meeting people face-to-face.  Going to conventions and other networking events is an excellent practice for building business relationships.  Plus, you can ask questions and maybe hand out business cards.  

Such events call for professional, formal attitudes, which can be scary.  But remember, you’re presenting yourself as an honest and genuine business owner–just like everyone else at the convention.  If you look at everyone like human beings with expertise to share, rather than a means to an end, you’ll have an easier time connecting with them.

Maintaining a professional network is like keeping a group of friends.  You should stay in touch every so often and continue to treat them as people, rather than just connections.  For example, when you reach out to someone for a favor, don’t leap into demand mode.  Send them best wishes, or your hope that they are well–any message that shows you care.  The same principle applies to your customers.

What is The Cheapest Way to Buy a Foreclosed Home?

When a home buyer or investor wants to buy a cheap house, it’s easy to assume they can find a foreclosure for a deep discount. However, that impression can be somewhat false, especially if the bank has a different idea of what’s “cheap,” as they want to get as much as possible from the sale.

If you’d really like to find a house that is cheaper, there are some places you can look besides realtor listings, such as sheriff’s auctions, estate auctions, private auctions, or directly from the bank.

Buy at a Trustee or Sheriff’s Auction

You can find notices of auctions online and in local newspapers. There are a number of websites that post information on auctions, and some might offer free trials. You typically pay in full at public auctions and buy the home in “as is” condition. Smart buyers will pay a title company to do a preliminary search prior to bidding.

If there are liens such as taxes, delinquent homeowners association (HOA) dues, or superior loans, those encumbrances stay with the home. There could be a number of professionals and investors at public auctions who can reduce your chances of winning a house.

Buy a Cheap Foreclosure at a Private Online Auction

Auction houses generally advertise online and in newspapers. These auction outfits might have marketers traveling around the country holding auctions at various venues. A private auction house often will let you obtain financing to buy a cheap foreclosure. You can also bring a buyer’s agent to represent you.

Some auction companies will let you inspect the foreclosures prior to bidding. However, you should be prepared to set a limit and be careful to not get carried away by the excitement created during the bidding process.

Buy Directly From the Bank

The best way to eliminate most of the competing buyers for a cheap foreclosure is to contact the bank directly. Banks are often willing to give a break on the price if a buyer or investor buys more than one home in a bulk-purchase package.

What you will find more often than not is that the bank does not want to sell to you. If the home is not on the market, but it’s bank-owned, it’s probably because there are tax advantages to the bank not to sell it.

Some banks maintain a list of foreclosure homes online that are available to buy. Buyers can also check the U.S. Department of Housing and Urban Development (HUD) website for a list of HUD-owned homes.

Foreclosures Listed on a Realtor Site

You can buy a foreclosure generally for much less than its original loan balance, especially in a declining market. However, that doesn’t mean that the bank will sell the property for less than market value. The market value might be 50% less than the last time the home sold, but that foreclosure price will generally reflect the value of the comparable homes around it, less the costs to fix it up.

The truth is that it’s rare to find a cheap foreclosure listing in the Multiple Listing Service (MLS). Every so often, if you’re lucky and fast enough to write an offer, you might be able to buy a foreclosure for a little bit under comparable sales, but bargain-basement deals are typically not listed in the MLS.

That’s because banks, like any other seller, want to make as much money as possible. They hire real estate agents to prepare an estimate of value and tell them how much they can get. The agent takes the condition of the home into consideration and names a price. Then, other agents in the MLS compete to buy that home for their buyers.

When buyers compete, multiple offers are the result. Multiple offers tend to drive up the price. To find a cheap foreclosure, buyers need to reduce the competition by exploring the alternatives.

Buy From Federal Agencies

You can also buy homes directly from various federal agencies, such as the Internal Revenue Service (IRS), Veterans Affairs (VA), and Federal Deposit Insurance Corporation (FDIC). You can search for homes that federal agencies have listed and learn about auctions they hold. The Department of Housing and Development has a search tool for finding homes, and you can place a bid using the site.

Can You Flip a Foreclosed Home?

Buying a flipped home can be a great way to get a property that’s been freshly renovated and updated. And foreclosed homes can make for a great flipping opportunity. They also represent a risk, however, as they can be a tempting opportunity for dishonest investors to try to make a quick profit. Be sure you do your homework about any property before you buy.

Don’t be lured by a fresh coat of paint, shiny new appliances, or slabs of granite on the counters. A foreclosure flipper home can have plenty of things wrong with it under the surface—things that you may not discover until it’s too late to do anything about it.

When an investor picks up a bank-owned home, either by buying that home in a bulk purchase directly from the bank or by bidding on the home at an auction, the foremost thought in that investor’s mind is making a profit.

But when you see the home for sale, you’re looking at its aesthetic value and how that home fits your parameters. Because of its emotional appeal, you might not notice construction defects that the seller is trying to slip by you.

Why Are Foreclosed Homes so Cheap?

One undeniable benefit is that foreclosed homes almost always cost less than other homes in the area. This is because they’re priced by the lender, who can only make a profit (or get some or all of their money back) if the home gets sold.

A foreclosure is a home that’s under the control of a bank. People foreclose on their homes when they can no longer make their payments. In most cases, foreclosed homes are much cheaper than other homes in the area, and you can sometimes find a good deal. However, these homes also often have severe damage and structural issues and are usually sold as-is.

Get in contact with an experienced real estate agent if you want to take a risk on a foreclosure. Your real estate agent will help guide you through the foreclosure process, because most banks don’t sell to individual buyers.

Get an appraisal and inspection once you find a home you’re interested in. You’ll also need to secure funding with a mortgage preapproval. Follow up with your lender and agent to finalize the sale once the results of your inspection look acceptable.

How Much Should I Charge to Clean a 5 Bedroom House?

Charging a flat rate can be tricky when you’re cleaning houses of all shapes and sizes. That’s why some cleaners set their home cleaning services price list based on a room rate.

The term “room rate” most often refers to the number of bedrooms and bathrooms, not the number of actual rooms in the home. That said, you can definitely calculate a rate based on actual rooms if you’d like!

When you’re deciding how much to charge for house cleaning per room, use these numbers as a starting point:

The average room rate for a one-bedroom, one-bathroom home is $75–110, plus $25 for each additional bedroom and $10 for each extra bathroom.

So if you assume a starting rate of $95 and you’re cleaning a three-bedroom, two-bathroom home, a reasonable rate could be $160 for a weekly cleaning job.

If a home has more bedrooms, it may have a larger kitchen and living space, too. Keep that in mind when you’re calculating room rates for homes with four or more bedrooms.

How do You Price Cleaning a House?

Before you start thinking about exact numbers, it’s important to think about the most common factors that will influence your house cleaning costs:

• Labor: How many workers do you have and what are they paid? Factor in your hourly rate for your team’s labor, even if you’re currently a team of one. Multiply your hourly rate by the number of workers for that job, then add 18% payroll on top. That’s your bare minimum amount, without even factoring in overhead costs and other factors.
• Overhead and profit margin: What does your cleaning company need to survive and profit? This covers taxes, fuel, cleaning insurance, supplies, advertising, and all other business expenses. Once you know your hourly rate, add at least 50% to cover overhead and profit margins (which should be 20–35% on its own).
• Home size: What size of homes will you be cleaning? This is usually determined by square footage or the number of bedrooms and bathrooms. The larger the home, the more you should charge for your house cleaning service.
• Home condition: How dirty is the home right now? Get photos or do a walkthrough to find out. The worse the home’s condition, the more cleaning it’ll need—and the more you’ll want to charge for your time and effort. You may want a higher rate if the client has pets, too, since this could mean you have to come more often or clean more carefully.
• Home location: Where is the home? If you have to travel a fair distance, you’ll need to charge more to cover travel time and fuel. You can also schedule clients in the same area on the same day, or use route optimization to cut down on drive time.
• Local demand: What’s the going rate in your region? Your rate should be unique to your business, but some areas do have a higher or lower going rate based on how much demand there is for cleaning services. Use the local rate to make sure you aren’t over or undercharging.
• Ideal client: What type of client do you want to work with? If you’re working in a lower-income area, premium pricing won’t get you far. On the other hand, lower rates in a high-income area could mean you’re leaving money on the table. Make sure to charge right around the rate that your client is willing to pay.
• Type of cleaning: What services will the client need? Basic tasks like vacuuming and dusting (especially if you’re doing them every week) won’t take as long as a more thorough one-time deep cleaning. You’ll want to charge more for services that take more time, effort, or supplies—or specialty services that your competitors don’t offer.
• Cleaning frequency: How often will you be cleaning? A one-time deep clean needs plenty of time and elbow grease, especially if it hasn’t been done in a while. If you’re cleaning regularly, though, you won’t have as much work to do because you’re in maintenance mode. The more time and effort you invest, the more you should charge.
• Experience level: How long have you been professionally cleaning? If you’ve been in the industry for a long time, you can charge a premium for your reputation and know-how. If you’re less experienced, you may have to wait to charge that higher rate until you have the experience to back it up.

Note: If there’s a cleaning contract involved, try to do an initial cleaning before signing on the dotted line. This will show you how much work to expect each time. Otherwise you could be locked in at a lower rate or longer cleaning time than you planned for!

How do I Make my Cleaning Business Successful?

If you’ve already opened your cleaning business and bought your house cleaning insurance, you’ve taken a huge step forward and that deserves a big thumbs up. But now, you might be wondering how to make your business grow to become a success in the industry.

Your potential clients have plenty of house cleaners to choose from, so you want to make your business stand out from the rest! Here we’ll look at a few tips to help your house cleaning business flourish.

1. Offer Personalized Service and Fair Prices

Spend some time giving free estimates. This will help you see a potential client’s home to work out how much time it will take to clean. Don’t charge the same price for a large house and for a small apartment. Clients will go running to a cleaner they believe is giving them a fair deal. Sit with the client to find out what they want.

According to surveys, customer experience with a company has a huge impact on how likely they are to be repeat customers, and that holds true for you, too.

Sitting with your clients to understand what is important to them gives them this personalized service and shows that you care about them and their needs, allowing you to develop a pricing plan that is fair to them and worthwhile for you. And when you need to raise your prices? They’re more likely to understand.

2. Manage Your Time Carefully

To be a success, you need to fill up your schedule. Working on your time management will benefit both you and the customer, as expectations are clear and match reality. Schedule your jobs in a way that allows you to fit more than one job in each day. Slots starting around 10am won’t leave you enough time for an afternoon customer as well.

On the other hand, starting at 8am will allow you to finish by lunchtime and go to another customer afterwards–or even take some much needed time off. It also means that your customer won’t have to have their entire day blocked off. Always be on time and efficient to keep to your schedule and keep your customers satisfied.

3. Find Your Niche

In a crowded market, it can be difficult to make a place for yourself. Spend some time looking online at reviews and social media to see what clients wants and what competitors are offering. Then, create a niche for yourself. Perhaps you guarantee all of your products will be environmentally friendly.

You might be able to offer flexible scheduling, such as evening or weekend time slots. Perhaps you work more on marketing with a weekly newsletter or blog posts with free cleaning tips, introductions to your cleaning staff, and product reviews. Having a niche will give you a unique place in the market.

4. Use Quality Products

Cheap products may save you money to begin with, but using more expensive quality products will help you attract a unique clientele that will benefit your business in the long-run. Using non-toxic and ecologically friendly products is better for the furniture and doesn’t leave any irritating fumes or smells around the home.

These safe and healthy alternatives are better for both your cleaner and the client. Keep learning about new products through suppliers, from industry publications or from trade organizations to stay on top of your game.

5. Treat Your Employees Well

Your employees are key to the success of your business. To offer a cleaning service that stands out, you need to attract the best and most professional cleaners. Some ways to encourage your employees to stay with you include:

• Spend time on training; show them how to clean windows, scrub a sink and more
• Don’t micromanage – show trust and respect once you’ve trained them
• Offer perks such as paid sick or vacation time to employees have shown their loyalty
• Provide bonuses for quality work

6. Spend Time on Marketing

Don’t become complacent once you have a solid client base. You need to spend time on marketing to ensure you always have new clients. There are many ways to advertise your business to the right markets. These include:

• Networking – Networking may not cost money up-front, but it can lead to business opportunities immediately or down the line. Let people know what you do.
• Contact real estate agencies or home builders – Make contact with companies who might refer you to others. This gets you right out in front of the competition with a potential client before they are even in their home.
• Advertise around the community – This is a great way to find local jobs. Put up flyers, pay for ads in local brochures or magazines and get your name out at local community events. This will help you build brand recognition.

7. Focus on the Business Aspect

Building a successful house cleaning business is not easy, in terms of the cleaning itself or the business aspect. Businesses need to be run professionally to be successful. For your house cleaning business to grow and expand, you need to take care of much more than just cleaning.

Make sure you have a business plan in place, that you’re filing taxes as you need to and that you have the house cleaning insurance you need to grow and thrive.

Do Banks Negotiate on Foreclosures?

Negotiating on a foreclosure allows a homebuyer to obtain the best possible deal. If he intends to resell the home for a profit, he may negotiate a low price for a fixer-upper house, invest in remodeling and modernizing the home, then sell it for a profit when the real estate market strengthens.

Keep in mind, however, that investing in an inexpensive home in a high-crime neighborhood is not likely to pay off. Purchasing the lowest-cost home in an expensive neighborhood may yield higher profits.

The lower a buyer can negotiate the foreclosure, the lower his monthly mortgage payments will be. Negotiating a lower price also brings homes that were previously prohibitively expensive into a buyer’s price range.

Banks are willing to negotiate foreclosures because they are losing money on the property when it sits vacant. They want someone to live in the house and to pay for the loan. According to Foreclosure Help, banks are so motivated to get foreclosures off their books that they will even help buyers finance the foreclosure.

They will provide appraisal information and inspection reports. Banks can negotiate directly with buyers without the assistance of a real estate agent. Because they own the property, banks can set the price for any value they deem acceptable.

What Are The Risks of Buying a Foreclosed Property?

There’s no question that there are risks involved with buying a foreclosed property — thus the great potential for deals. Knowing there are risks can actually be a good thing: The difference between knowing what your risks are and not knowing could be the difference in whether you make or lose money on the transaction.

Once you know the risks and have plans in place to adequately deal with worst possible scenarios, you have a better chance of making, not losing, money. It’s better to know what those risks are than to be blindsided.

1. The house is in bad shape

Foreclosed homes are sold “as is,” meaning that if repairs are needed, they haven’t been done. If homeowners are in such dire financial straits that they can’t pay the mortgage note, they’re probably not keeping up with repairs and maintenance, either.

Of course, the house might not be in bad shape, but if you buy at auction, you probably won’t be able to know for sure, since many auctions don’t allow buyers to inspect the home first. If you buy from the bank, you might have a better chance of inspecting and previewing the home before you buy, depending on the deal.

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But, unlike a traditional home sale from a seller where you can ask for seller concessions or for the seller to make the repairs, with a bank-owned property (REO), you’ll be responsible for any needed repairs.

Possible issues with buying a foreclosed home that could prove to be big expenses include:

• Additions to the home that are code violations.
• HVAC that no longer works.
• Nonworking appliances.
• Leaky roof.
• Water damage.
• Structural issues (foundation, crawl space, basement, slab, framing, walls).
• Bad plumbing.
• Termites.
• Faulty wiring.
• Mold.
• Insect infestation.

2. The house has been vulnerable from being vacant

A foreclosed home has probably been sitting vacant for quite some time. And that isn’t good for many reasons. Vacant homes are subject to vandalism, theft, squatters, and water and fire damage. The longer the home you’re interested in buying has been sitting vacant, the more likely it will be for damage to have occurred.

3. You could pay too much

If you only consider the price of the home and not the repairs involved, you could easily lose money on the deal. Investors need to consider the after-repair value (ARV) of the home as well as the acquisition cost. (More on that below.)

4. The buying process can be difficult

It can take longer to buy a foreclosed home. Instead of dealing with just the seller (and perhaps their agent), you are now dealing with a bank. Sometimes banks can drag the process on longer than a typical closing from the homeowner.

5. There could be outstanding liens

Homeowners who can’t pay their mortgage might have had other issues regarding home expenses. They might not have paid contractors, resulting in a mechanic’s lien being put on the home, which you will likely need to pay if you buy the home. You also might need to pay property taxes or homeowners association (HOA) dues if those are outstanding.

6. Others are interested

Whenever there is a great deal, you can bet that you won’t be the only investor interested. You will likely be competing with experienced or institutional real estate investors for a good deal.

Conclusion

In the beginning, your primary time and effort will be spent on marketing your services.

Once you begin to obtain jobs, there will be physical work involved such as the actual cleaning, as well as climbing stairs, moving large items such as furniture and appliances, and possibly removing items like carpet or flooring tile.

In any case, provided that you have a flexible schedule and are willing to get your hands dirty, your business can be up and running within a very short period of time.

Regardless of whether you start a foreclosure cleaning business as a part-time or a full-time endeavor, once your company is under way, you are likely to make a great deal of income.