GreenClean

We just got a foreclosure home to bid and clean!

Can anyone help me with details of what to include and what others are charging?

Thanks,

Michael
Green Clean

t.peterson

Many are just move out cleanings, but some however are trash outs that require you to have to remove left possessions, trash, etc.... prior to cleaning.

I would recommend that you walk thru the job prior to billing it so that you know for sure what you are getting into and are able to price accordingly

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suzikg

Definitely do a walk-thru and "estimate" the time you think it might take. And emphasize the fact that it is an estimate. Make sure you look at the oven, fridge, kitchen cabinets, bathrooms for lots of crud.

i've never done a trash out but have done many that had issues I didn't notice during the initial look.

As far as price, I charge a minimum of $250 for these depending on the size of the space and amount of work involved. I've gotten $500 for some of the rougher places.

These jobs are tough but I love them because there is always a dramatic difference between the before and after.

Just figure what you are willing to work for an hour and go for it

suzi g

t.peterson

I agree with you there I love the sense of accomplishment when a trashed out home looks pristine and gleaming when we finish as well

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monica_rmr@yahoo.com

Hi, my name is Monica Romero,
I've been doing this cleaning houses for over 4 yrs. I have recently started cleaning foreclosed houses for a REo company but the pay isnt all that much since I'm a single parent of 4 girls..
I'd like info. on how to start this on my own.
I do have all the experience and supplies ( trailer,workers) which include my dad whos been repairing houses for over 30+ yrs.
I do have pics of my work since I had to e-mail them to the lady who I cleaned for..
BUT what do I do to get my own clients and where do I start ??
need to do something now !!
do i have to be licensed and bonded??
do I just have to promote myself??
But where??
do I need my own website?? how do I do that??

Barry M

There is nothing like the feeling of accomplishment especially when it's your own business.

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foreclosure-cleaning

It's all relative to your area, Michael. If you're dealing with the bank, expect to be paid less for the foreclosure cleaning job than if you're dealing with, say, a new buyer who just closed on the home.

dreamstinvestments

Go to this site: click here! They have an excellent training guide with the hud guideline tables to help you price your bids. Good luck

foreclosure-cleaning

As the owner of a Foreclosure Cleanup company in Atlanta, Foreclosure Cleanup, LLC, we get many calls from small businesses asking how to price services. There are many soft factors, as well as hard and fast factors, to consider. We put together an e-book: "Pricing Guide for Foreclosure Cleaning & Real-Estate Service Businesses: How to Price Jobs for Profit" that goes into great detail on how to charge. HUD's pricing charts are not only revealed (HUD will only pay larger contractors a certain amount to perform certain services in certain areas of the country), but we go into greater detail telling you when and how to take those charts into consideration, when pricing everything from debris removal to lawn care to pool cleanouts, etc.

Looking at the HUD charts alone will only confuse you, but if you figure out where you are on the totem pole in getting paid, dissect your company’s ideal profit structure (which we discuss in detail) you can learn how to accurately price to win more contracts. We put together the first HOW TO on starting a foreclosure cleanup biz; this invaluable pricing guide is another valuable tool to keep you pricing “profitably.”

Good luck with your business.

Cassandra, Foreclosure Cleanup, LLC

dreamstinvestments

For trashouts, banks usually follow the hud guidelines very closely, take lots of pictures and include them with your bid, go to this website: http://www.listbankrepos.com They have a good Foreclosure Cleanup training guide, it comes with the HUD guidelines and the bank contacts so you can get more contracts. Congratulations on your first bids!!

dreamstinvestments

I forgot to mention this, we belong to http://www.instanthomelink.com REO Asset managers frequently search here for vendors to clean out their foreclosures, we have gotten many jobs from here and they also send our resumes directly to the REO Asset Managers every month. I highly recommend joining here!!

foreclosure-cleaning

Tons of free info out there on starting a foreclosure cleanup business. Do a little online research, come up with your pricing and set up shop.

Foreclosure Cleanup, Atlanta

Home_Cleaning

Hey, thanks for the link for the training guide. I really appreciate it.
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Home Cleaning

MoMoody

I started a foreclosure clean out biz and have been trashing them out now for a week. I know I'm new at this and will take me some time but how can I clean these faster than what I'm doing? My contact said that a two man crew can clean out two homes in one day. Thats removing all debris and cleaning bathrooms and kitchen, sweeping, mopping, vacuuming, cleaning appliances, replacing bulbs, light switches, cleaning ceiling fans and light fixtures, windows with inside track, lawn cut, not to mention all the photos they want me to take in the process, and taking it all to the dump. Its taking me and my friend at least 10 hours to do all this cleaning. The only way I can do two houses is if I dont sleep. And with the money they are paying me, its just not worth it right now. Can anybody give some advise on what the banks really look for in a cleaned out house? Any pointers on how I can clean them out faster? Starting to think if I should have spent my money on a different biz. Thanks.

foreclosure-cleaning

Hi, it may be time to bring on some temporary help. Consider finding some manual laborers to help you with the debris removal; also, consider bringing on some interior cleaners at a fair hourly rate. You may make less off each job but you will be GROWING in that you are managing the jobs and you will be able to take on more homes. Working with banks, your profit comes when you start getting volume. It sounds like you're "growing!" Work with it, that's good stuff. Time to get from behind the broom and get in the management seat. Again, good stuff! Congrats!

Cassandra

dreamstinvestments

If you are looking to get more foreclosure cleaning contracts, register your business everywhere with all the banks and reo asset management companies. Here is a website where you can get a list of over 1200 Foreclosure Bank Reo Departments, Reo Asset Managers, & Reo Asset Management Companies and their complete contact information. http://listbankrepos.com/Reo-Asset-Managers-List.aspx Then, sign up with them all.

If you need to learn how to price your bids/jobs. Most of the banks use the hud guidelines to set their price limits, you bids can be higher but you have to back it up with lots of pictures. Here is where you can get the hud guidelines:
http://listbankrepos.com/startaforec...recleanup.aspx

Also, you can get foreclosure cleaning contracts from real estate agents by contacting them on the Foreclosure Cleanup Network, it's free to join and network too. http://www.foreclosurecleanupnetwork.com

fremontreo

Bank cleaning? Well its not necessarily "all roses" since they banks pay schedules are designed for you to "go broke" and not make any "profit". Just the facts. The cleanout business is only for the few that will fail or is able to survive for the 2-5 years to get enough "in" with a company to go into the repair/rebuilding side of the business. That is where the P&P companies that have been in existence for longer than 5 years normally ends up. We have been in the REO/Foreclosure business for 14+ years and learned a long time ago the "cleaners come and the cleaners go". Normally a life span of the cleaners is less than 1 year since by that time all the $$ is long gone.
To trully be profitable get together with a company that has been servicing Foreclosed Properties for many years and hang on to the "coat-tails" and learn the trade and make $$ while doing it.
As far as cleaning? Most only want a "broom swept" condition which is only a light sweeping/wiping of all surfaces and get the heck out of there. In fact most homes sell faster and for more $$ dirty than clean. Buyers think they get a better deal on a dirty foreclosed home than a clean one I know it don't make sense but ask the knowledgeable realtors and let then give you their thoughts.
Priceing? We will not touch a initial cleanout (no matter if there is only a little debris) for less than $800.00. A crew of 2 must gross over $500.00 per day (after landfill and gas expenses) or they fail.
Theres a free lesson.
Good luck.

foreclosure-cleaning

I agree in part with the previous post, but as a Realtor, Investor and Landlord, I RESPECTFULLY disagree with my colleague when they say buyers feel they are getting a better deal if a home is in bad shape -- ESPECIALLY IN THIS MARKET! I have been on the buying end of REOs, on the selling end of REOs, and on the toilet-bowl-face-down, cleaning end of REOs. Homes need to be in TOP shape to sell -- even at fire-sale prices... I agree with the portion of the post that references pricing. We cannot monopolize and say that we will not touch a home (cleanout) unless it is priced at so-in-so, but I do believe, as an industry, we have to price to make a profit -- otherwise, what's the point. My response to clients who say, "I can get XYZ Company to clean out the home for X-dollars," I say, "Go for it!" You have to do your research and price so you can make a profit in this industry, which of course has thin profit margins (it's manual labor and I don't know of a "foreclosure cleanup" union. (If you do, please let me know.) But if you're smart in your pricing, you can make a decent, steady living (which means you SHOULD turn down slave labor rates). Foreclosures will be around for a loooong while; and even after the hot term ("foreclosure") is not in vogue, so to speak, in our industry, real estate will AWAYS need our services, plain and simple: cleaning, lawn care, repairs, debris removal, painting, gutter cleanouts, pressure washing, etc.). If you want this business, go for it! And don't spend a dime on anybody's product (including ours) until you read all the FREE info out there. Our company has put out tons of FREE articles -- because I eat, sleep and breathe real estate -- still the fastest way to wealth in our country -- for my generation and the next... just a little guts is all it takes... If you want it, move naysayers out of your way and go for it!

Cassandra

fremontreo

Nice post but I will disagree. Fannie Mae put out a memo to realtors, asset managers and some of us Sams Vendors that a house that had a "clean out" completed netted $412.00 more than a house that was not "cleaned out"...
Fact is that overall a house not cleaned out and no cleanout fees paid out will net the bank/mortgage company more than 1 that is clean.
This does not include the exterior work or mowing. Who knows since I'm sure every market is different.
Example: today we completed carpet cleaning with our truckmount on 2 properties and the realtor had been recommending to remove the carpets...not now
Sometimes making the property look "new" does help but price is the final for the decision making....
Also, Union? its coming according to a lot of P&P contractors who have been getting "polled" by the Laborers Union..it will happen...Good? Bad?
Don't know on that one.

dreamstinvestments

When we started out we weren't really sure how to bid our jobs too. There are several factors to take into consideration. It really depends upon how much square footage the property is and how big of a job it is, but majority of the national asset management companies and banks use the hud guidelines to set their prices, I highly recommend getting them, it makes bidding and pricing your foreclosure cleaning jobs a lot easier.

Here is the link where we got them
http://bit.ly/hudguidelines