How to start a cleaning out foreclosure business?

Mr J
Other/Just Looking
Los Angeles, CA

I want to start my own cleaning out foreclosure business, but what do i need to get started. How to i get a llicensed and insured. How much to charge and what to i charge.What things to i need to clean.how much to i need to start my business. Is it hart to get licensed an here to i start frist.

Answers (4)
Cassandra
Agent
Atlanta, GA

Tons of FREE articles at link below on starting your foreclosure cleanup business. Good luck!

Fri Dec 18 2009, 12:16
Property Pros L...
Builder/Developer
Sacramento, CA

Check out the site below. They seem to have alot of helpful information about foreclosures.

Fri Dec 11 2009, 12:44
Jes Sierra, B.S...
Agent
Chino Hills, CA

Hi Mr J,
This is a repost of a similar question to yours that I answered.
You need to work under a contractor for I believe 2 years to get a contractor license.
And the test is pretty much difficult, even much more if you don't know anything about constuction.

"You need to have a Contractors License for trashouts believe it or not. You need to be insured and bonded.
To make a long story short, if a REO agent hires an unlicensed contractor for a trashouts, the REO agent is liable for 4 years after the work is performed and for any fees, penalties and fines.
California and the IRS have strict guidelines in hiring unlicensed contractors. "

Hope this helps,

Jes Sierra, B.Sc.
Realtor®

Tue Sep 1 2009, 22:35
Katina Wright
Agent
30310
FIRST ANSWER

Greetings,
The best advise that I can give you is to sub-contract some jobs for vendors who already have their foot in the door with performing these services. Sounds like you are starting from ground zero.

The easiest thing for you is to get some work from a group that already has plenty of it. Safeguard Properties and Cyprex are major players in my market.

1. Call a couple dozen REO agents in your area and ask them who handles their Foreclosure properties. Once you get a name you have something to work with.

2. Register as a vendor with asset management companies directly. You have to do the research.

3. Do you have a zero turn radius lawnmower? You may only get $40 - $50 to cut a yard no matter the size. The quicker you can get it done the less painful the fee will be.

4. Some jobs don't allow you to dictate the fee, the compensation is X, take it or leave it.

Good Luck it is a lucrative area!!

Fri Jul 3 2009, 00:28

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