I left you a website that provides all this information in detail below-this will greatly help you
You will need to start your business, business name, business license, general liability ext. here is a website that provides all the steps and information you will need to get started

Hi Dan,

Ton of FREE info and advice specifically for foreclosure cleanup start-up businesses at the link below. Everything from licensing and insurance, where to get clients, starting your business on a budget, etc., is discussed.

Good luck to you with your new foreclosure cleanup business. Remember, it's not a fast buck and you need to be in it for the long haul.

Cassandra, Foreclosure Cleanup, LLC, Atlanta, GA

Mike, you;ve noticed the same thing I have. There are several of these guys that take turns placing the same basic message at the top of each message forum they lurk on so that they look like a new message. Oh, and they delete their last message to try and complete the fraud. But it is always to the same website where you can buy their information.

Very unethical. They are also spamming a question regarding getting reo business. Interesting how often the same writer is often on both forums at the same time. Hopefully Trulia will put a stop to these spammers.

dear trulia,

you need to figure pout how to put a stop to this spammer and the two spammers who always reply to his question.

just remove the question already.

Sorry, my mistake. The national company is Safeguard, not Safeco.

They do alot of work throughout the US so they are a good one to sign up with.

Steele

I am a long time REO agent here in the Twin Cities. Today lenders fall into two categories. They use a national service for all their work, who in turn hire local people to do the various jobs (including cleaning and trashouts) or they put the listing agent (like myself) in charge and that person hires out the work. Right now it is about 50/50 with the lenders I am working with.

Two of the big national firms are Cyprexx and Safeco. You can google them. I believe that they do take online applications. While you don't need to be licensed in Minnesota it would be good to be bonded.

Otherwise you can research who the top REO agents are in the area and personally solicit them. Email or letter is best. Most of these guys have work crews that they regularly use but you might hit them at the right time and place and get in. Be aware, however, that billing is often on a 30-45 day cycle. If you can offer to wait for that timeframe to be paid, you will look much better.

Good luck.

hey trulia...y'all need to tidy up the process here...this spammer is relentless.

juts put a filter on that disallows dreamstreet...see below

Those agents that handle foreclosure properties are normally the ones that will give out that work so I would suggest contacting local real estate offices and talking with the agents handling them. Some agents also look for someone that will winterize the property too. I haven't heard of you needing to be licensed or bonded. I hope this helps.

Lots of very good advice below addressing starting a business and finding leads for your business.

One critical item, though, hasn't been discussed. That's your pricing--what you charge. I've posted before here (and written books on general janitorial/custodial pricing--not a plug since some are out-of-print, but you can search Amazon for more info) on that topic, so I'll keep it brief.

Ignore any advice to "charge $x [often around $1] per square foot." Bad, bad advice. Your price depends on two primary factors: (1) your hourly rate, and (2) how long it'll take to do the job.

First element: Hourly rate. What is your time worth? $10 an hour? $20? $30? $40? Don't sell yourself short. Plumbers, electricians, auto mechanics, and others aren't afraid to charge what they think they're worth. You shouldn't be, either.

Second element: Number of hours required. First, you may work faster or slower than your competitors. That's OK. Second, some jobs will be easier. Some will be more difficult. You've got to factor in the length of time for each job.

Then you multiply hourly rate times number of hours. Let's say you figure it'll take you (or you and someone else, if you're going to be using some help) 20 hours to do the job. And you think you're worth $30 an hour. 20 times $30 is $600.

Then you add on your overhead. That's the time you spend on your business that isn't revenue-producing. It includes marketing, recordkeeping, driving around to provide estimates, etc. A good ballpark figure for overhead is 30%, but once you get rolling, you should adjust that figure up or (more likely) down. So, in our example, you boost $600 by 30%, and come up with $780. Also, factor in any special or unusual expenses--let's say the rental of a piece of equipment for a special task.

Then stick to your numbers. If someone else bids cheaper, let them. If you try to be the cheapest, there's always going to be some dummy who'll do it for less. Always. You want to be known for offering a good, dependable value. Or even (eventually) for offering an excellent high-quality service with a price to match. But start off offering excellent value at a fair price.

You might contact Building Service Contractors Association International. They're at http://www.bscai.org They have books and manuals and getting started in the janitorial/custodial business, how to do bidding and estimating, and how to expand into niche markets.

And here are a couple of other resources that might help:

http://bit.ly/Cleanout1
http://bit.ly/Cleanout2

Dan,

Our family has had a REO/Short Sale "Trash-Out" full service company of over two years. Top Priority is to understand that this is a BUSINESS, not just a cleaning service. I will bullet some basics, but it actually takes experience and time to put it into full force:

* Apply for a license! Either through your State, County, or City - or all! It varies.
* When you receive your License - get Bonded.
******CALL YOUR INSURANCE AGENT & GET INSURANCE!!! DID I SAY, GET INSURANCE??
* Set-up a Business & Marketing Plan.
* Talk to your CPA and discuss your tax options - 1/4ly tax payments, etc.
* Set-up a Professional Business Name you will use on Biz Cards, Marketing & Advertising materials.
* File for a Fictitious Business Name through the County. (There's a waiting time while it's being published in the lcoal newspapers)
* Once you receive approval for your Business Name, set-up a Business Checking/Savings Account at your bank separate from your Personal accounts.
* Get a .com
* Set up a simple website so you can direct potential Lender's, agents, and clients to. Looks more Professional.
* Network, network, network! Get your name out there.
* Be confident - this is a new adventure but if you do your leg work, and educate yourself, you could be successful.
* Make sure you have a "nest" egg put aside. When you are cleaning, repairing, etc. REO properties, you must front the funds and wait to be reimbursed from 30 days to 4 months at times from the lender. (We NEVER have the agents pay us! They have enough on their plate)
* PREVIEW the properties before you EVER give an estimate!!! NEVER rely on someone's opinion as to what they think it costs! You'll come out on the wrong end of the profits everytime!
* If you get the job - DO IT ON TIME & RIGHT THE FIRST TIME! REO agents have a strict time-line to get these properties completed and they have to answer to Asset Manager's. They can't afford to look bad or have the bank check up on the property only to find out it wasn't done propertly. You'll be DONE!
* Stay on top of your Quick Books billing!
* Invoice's become overdue quickly! REO agents are for the most part very good at keeping up with this, but the banks, because they're inundated, can lose track. It's your business and your responsibility to make sure you get paid!
* Invest in the proper materials, tools, & supplies the FIRST TIME. If you cut corner's you'll wind up paying more in the long run.
* Make sure you have a small "crew" waiting that could jump in at a moment's notice in case you get more than a few properties at a time....most likely they'll all have to be done at the same time! Like yesterday at times!
* Always communicate with the REO agent!!! If you see something at "their" property that they may not have seen, or it had changed since they were there, CALL THEM! Keep them informed.
* Ask for referrals........everyone in the RE industry love's referrals. You need to ask too!

Best of Luck with your new business! Have fun with it......if you have questions along the way, please feel free to ask!

Yes! You must be licensed if you want to work with banks. In order to get started you should find out who is handling Property Preservation in your area or online to add you to their vendor list. You can also go to conventions like Fivestar or REOmac to meet these companies. Hope this helps and good luck!

Patti's advice is good and right on! It is a good idea to be bonded for anything like this and to have a good business plan is essential. I have quite a few short sale listings. Sometimes these need to be cleaned out. A recent example was a large and lovely home that looked like hoboes and cannibals and other hombres had been residing there. I did some checking to see if a dumpster, a cleaning crew, some other helpers could be mustered to get the place a little more appealing. That, would, of course been at the sellers' expense. This was not a "garbage house" but needed cleaning at least and clearing out and tidying. I gathered some estimates and the sellers were shocked to find out that a minimum cost would be in the $3500 range up to $5000, depending on the dumpster and what could be put in it, the scrubbing and cleaning and whether or not the windows were washed. I got the sellers to muster their friends and family and do some major trips to the recycling and other places goods could be taken. Otherwise, I, the agent, would have had to front the job and not knowing what was going to happen, it did not make sense. Sometimes I have helped clients - usually this involves staging and cleaning and some minor repairs. I have been willing at times to supply elbow grease and some cosmetics for my sellers, just because it really makes a difference. An example of this would be a home where a different door had been put on a room in a home I subsequently sold for $850,000. The home got lots of showing almost immediately - well priced, good area, good general repaid, but this missing strip made people suspicious. "Did something happen here? What is going on? Is the floor bad? What's wrong? When asking the seller to put a door sill in place where none existed, fell on deaf ears, and customer comment continued, I waited until they were away for the weekend, went to Lowes and paid $42 for the piece cut to size and went over and put it in place. That was a worth-while expense! I might also add to Patti's comments that these foreclosed or short sale properties usually require and "as is" amendment and the institutions who are selling them have in most cases never seen the property, are not concerned about its marketing in the details. I do think clean-up, fix up and clear out - this usually happens after Sheriff's sale when the "new" owner realizes they can't leave everything to rot in refrigerators, etc if people walk away. It also means you just about need the Haz-Mat suit to go in and clean! Liz Fuller - 612-986-4105.

Dan, there are sometimes large costs involved here that you might want to check out first.

What you call "cleaning" is called "Trash-Out" by REALTORS, so you might want to google that term and the word Minnesota and see what you find.

My husband was considering doing this too, but he decided against it because of the possibility of handling hazardous materials and the costs involved.

To be best of my knowledge, you do not have to be licensed to pick up "normal" garbage, but then what do you do with it? You DO have to be licensed to do certain kinds of Trash Hauling and Disposal. In other words, once you clean out the house, how you handle the trash is critical? That can be VERY costly and require multiple licenses.

Another consideration is what kind of trash is it? If you have chemicals, batteries, used oil, flourscent light bulbs, paint, electronics equipment, etc. these are considered hazardous and need special handling. Hazmat handling gets expensive fast.

You will need to be insured and bonded, or most REALTORS will not want to work with you.

Minor repairs may be needed, but are not generally considered to be part of a "trash out".

You might consider working for a trash-out company for a while to learn the ropes and see if you even like doing it. Maybe check out someone like JJO Enterprises in Andover.

Starting a new business is a big risk. Please check with the Minnesota Secretary of State office to find out more about hazmat disposal and handling, trash hauling, and trash disposal licenses and fees.