Educate yourself on this business, it is very hard work but there is plenty of work available. When you offer multiple services, most of our vendors earn about $2000 and up on the property, but this includes the trash out, rekey, boardup, lawn maintenance, and more. The fee does go up is the trashout job is very large and always take tons of pictures of before and after. The foreclosure cleanup network provides a lot of this information for free, try to learn as much as you can about this industry for free as you will have other places you will need to invest your money.
Equipment needed: This just varies to if you want to buy all your equipment in the beginning or build yourself up as you get going. We have one vendor that rented all their trucks and equipment, the only thing they owned was a lawn mower, edger, and cleaning supplies. They did a very good job for us and we now use them regularly.
Speed! The best way to get business in this game is by how fast you can get the job done! We are on strict timelines to get these properties prepared to be listed and need the work done quickly and accurately. When you do this, you will definitely get more work!
Start out by contacting the local "Reo" agents in your area, they are the ones that list the bank owned homes, they can provide you with work. Walking into a bank branch will unfortunately get you nowhere, if you are looking for trashout work directly from the banks, they require all reo vendors to register their company and provide them with the business license and general liability insurance. Also, try asset management companies, they can provide you a steady flow of work. I wish you much success on starting your new business.
Good luck to you.
The best way to get started is by handing out fliers to Real Estate agents. We really do look at these. It is important that you are always accesible on a cell phone. We are always in a hurry when getting these properties fixed up and if you are the first one to answer the phone, you are way ahead of the game.
Hope this helps
On quickly to your query: It's highly unlikely you will get a meeting by walking into the banks. Many of the REO asset managers aren't located in the local branches. I suggest starting by contacting local foreclosure realtors, field services companies, asset managers at banks via mail (keep sending them stuff!) local mortgage companies, and other companies offering similar services in your area. Please register as a vendor with the larger property preservation companies, too. And don't discount networking with your "competition" for their overflow. Good articles below on the subject at foreclosure cleanup blog below.
Many wishes of success to you in Rialto!
Cassandra, Foreclosure Cleanup, LLC, Atlanta, GA
Best of luck!
There are many Asset Management company's on the internet. They have vendor sign up forms that you fill out for them and if they need you they will contact you. I would also find your top REO producers and give them a call. They might be able to hire you for there REO's!
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Also, make contact with janitorial and custodial firms in your area. It's very likely they're getting calls (that's who you'd call, isn't it?), but most don't handle that sort of business. It's a niche market. See if you can pick up some referral business from them.
Contact Building Service Contractors Association International. That's the association representing janitorial and custodial companies. I don't know if they have any information specifically on trashout and cleanout companies, but they may. (I worked for them a while ago, and wrote a number of books for them, including books on bidding and estimating and on niche markets.) They're at http://www.bscai.org.
And here are a couple of other resources:
Hope that helps.
All you need is your business license and general liability insurance, since you will be an independent contractor and property preservation vendor.
Need more information, check out my blog:
REO agents will not hire or work with any trashout companies if they are not licensed and insured (Bonded)
This is a repost I answered earlier.
REO agents at times also use the trashout services for retrofits as well.
"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.
Just my 2 cents,
Jes Sierra, RealtorÂ®
The banks and asset managers are extremely busy with just getting the REO's ready for the market with the evictions, legal probems and much more. In most cases the initial house cleaning, trash removal and yard maintanence is going to be handeled by the real estate agent that is assigned the listing.
The real estate agent will need a company who promptly provides detailed estimates with before and after photos. Also, the photos and written estimates must be delivered by email so they may be easily forwarded to the bank or asset manager.
Finding the right real estate agent is not all that difficult...just look for the agents with the most listings in the area you plan to work in. Just surf the web for listings or drive the streets looking for signs!
I am also interested in this business and have done quite a bit of research. I am coming across info from people already doing it who say there is a issue with getting paid because money passes through so many hands. Wouldn't the bank or realtor need to sign a contract with you...who knows about this? Also I live in the SF Bay Area and would like to find someone to partner up with. I am a licensed painter and hard worker...anyone know of someone who would be interested?
Another option is to see if there is a Municipal, Covenant or Homeowners Association requirement to keep the property up to a certain standard. You may have to call around to see if this is the case. If you are able to confirm a minimum standard requirement or anti-blight law, then see if you can find someone to pay you for this service. In this situation, you get paid for the service and someone else is saddled with recouping this amount.
The last is a very long-shot, but ask the neighbors if they are willing to pitch in. In some rare cases, you will find they are willing to pitch in if others pitch in, the distributed cost is minimal, and this helps their property value.