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!