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Old 04-27-2009, 09:14 PM   #1
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Question New cleaner of foreclosures

Aloha!! I live in Hawaii and there are a million foreclosures here and more specifically on my island. I want to start a business of cleaning and repairing foreclosures and vacation rentals. My questions are as follows: did you advertise and get your first job and then get materials and help or vice-versa? did you cold call for work? make flyers? get a business license? workers comp? bonded? insured? require that you're workers pay their own taxes? how do you figure materials in your bid? (is there an equation for how much cleaning product you will use) what was your first cleaning experience like? was it what you expected? mahalo (thanks in Hawaiian) for any and all responses.
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Old 04-28-2009, 09:52 AM   #2
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Welcome to the board Hawaiiangal

to answer your question(s) quickly, we got all of the business end settled first (license, insurances, etc) then we placed our ads and brought on the help as we were able to get more jobs.
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Old 05-01-2009, 09:04 PM   #3
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Thumbs up Best of Luck To You

I have been doing foreclosures, construction cleanups, move ins, move outs, and a few vaction rentals for years.
First get all of you business items in order. Ficticous name, business registration, insurance and any licencing you may need.
There is a HUGE difference in doing rentals vs. foreclosures. Most rental are not trashed out. But foreclosures can be an undaunting challenge.
If you are going to JUST clean the foreclosure, (not clean out) be prepared to show all of your business insurance and licensing to the bank or the realtor as they WILL require it. Foreclosures can be tricky. You may think you have seen "everything" when you go to bid - but the hidden items can be the worst.
If you are going to repair foreclosures, think about partnering with someone who has a construction background if you personally do not have a background in this area.
I have run into crazy things from dead animals, rodent infestation, etc. to the electric, water and sewer that cannot be turned on because of unpaid bills. I have encountered broken pipes, no light fixtures (all had been taken). So make sure you know what kind of situation you will be working in.
Also, with a foreclosure, your payment can be slow. In my business area, right now, the banks do not want to spend money to clean them up. They want to turn them over to a realtor and put no money into them for repairs or clean up.
I wish you the best of luck in your business endeavor.
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Old 05-08-2009, 02:26 PM   #4
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Thumbs up Goodluck

Get started with the legal side first.. business name, license, bonds, insurance, etc. Then look into advertising & equipments. Hiring you might want to do last. Initially for the first few weeks you may have to lend a hand here & there if you are starting ground up. Best of Luck!

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Old 05-08-2009, 02:29 PM   #5
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Also, you may want to start with perfecting one trade first. Whether it be cleaning or repairing.. then combine the 2. You may be in high waters if you try to tackle both at one time especially being a start up company.
Construction & Cleaning are two different trades!

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Old 08-23-2009, 04:17 AM   #6
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Default Excellent foreclosure training guide

Hello, I found this excellent foreclosure cleanup training guide with reo bank contacts, click on this text now.


Quote:
Originally Posted by hawaiiangal View Post
Aloha!! I live in Hawaii and there are a million foreclosures here and more specifically on my island. I want to start a business of cleaning and repairing foreclosures and vacation rentals. My questions are as follows: did you advertise and get your first job and then get materials and help or vice-versa? did you cold call for work? make flyers? get a business license? workers comp? bonded? insured? require that you're workers pay their own taxes? how do you figure materials in your bid? (is there an equation for how much cleaning product you will use) what was your first cleaning experience like? was it what you expected? mahalo (thanks in Hawaiian) for any and all responses.
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Old 12-04-2009, 04:26 AM   #7
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It isnít really hard to get started doing this; there are many jobs out there that just have to be bid on. You will deal mostly with banks and real estate agencies. You simply have to get your name out there and look for these homes that need to be cleaned, and trust me there is no shortage of them. I suggest a pickup, large flatbed trailer, numbers to all dumps/landfills in your area, and a business card to give to your prospective clients. Thatís it. And to tell you the truth, itís not bad pay. If you hook up you can make upwards of a couple grand a week.


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Old 12-04-2009, 09:37 AM   #8
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Thumbs up Good Book to Help you Start a Foreclosure Cleaning Business

There is an excellent book I bought called "How to Start a Foreclosure Cleanup-Property Preservation Business" It teaches you completely how to start and run your foreclosure cleaning business and where to get the contracts from. It even comes with the hud guidelines to help you price your foreclosure bids and the bank contacts to start getting work right away. Here is the website, http://www.listbankrepos.com
I would recommend it, it really helped us.

Last edited by dreamstinvestments; 01-18-2010 at 12:31 AM. Reason: misspelled words
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Old 01-18-2010, 12:43 AM   #9
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Thumbs up Starting a foreclosure cleaning business

Aloha, this is a great business, especially right now. I bought a good Foreclosure Cleanup Training Guide when we started that taught how and where to get the contracts, and how to market your business, here is there website: http://www.listbankrepos.com They also give you the bank contacts so you can get contracts right away. I highly recommend joining Instant Home Link, here is the website: http://www.instanthomelink.com I have gotten alot of contracts from this site, many REO Asset managers go on this website to search for Foreclosure Cleaning Businesses for their foreclosures. They even send a resume to the REO Asset managers every month showcasing your services you have to offer. This is one of the best places we have gotten contracts from. Good luck


Quote:
Originally Posted by hawaiiangal View Post
Aloha!! I live in Hawaii and there are a million foreclosures here and more specifically on my island. I want to start a business of cleaning and repairing foreclosures and vacation rentals. My questions are as follows: did you advertise and get your first job and then get materials and help or vice-versa? did you cold call for work? make flyers? get a business license? workers comp? bonded? insured? require that you're workers pay their own taxes? how do you figure materials in your bid? (is there an equation for how much cleaning product you will use) what was your first cleaning experience like? was it what you expected? mahalo (thanks in Hawaiian) for any and all responses.

Last edited by dreamstinvestments; 01-18-2010 at 01:02 AM. Reason: misspelled words
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