Cleaning Foreclosures the #1 Recession-Proof Small Business to Start

The February 2009 MSN real estate article, What crisis? Some businesses are booming, lists 9 businesses that are booming in this economy. And you know what, of the nine businesses listed, 6 fall under the foreclosure cleanup umbrella. Hence, one could make the argument that cleaning foreclosures is perhaps the number one recession-proof small business to start.

 

So just what are these businesses?

 

6 Booming Businesses That Can All Be Handled by a Full-Service Foreclosure Cleaning Company

 

1. Grass Painter: Ever watch an episode of Flip This House on HGTV and see grass painters turning brown, ugly lawns into beautiful, lush-looking landscaping within minutes? This is what a grass painter does. Just like spray painting a wall in your house, a grass painter paints the grass.

 

Many foreclosure properties need this service to make the home attractive for resale and/or to prevent it looking like an abandoned property. And, at $100-$1,000/pop, the proprietor featured in the article says he’s not only busier than ever, but has people flying in from all over the country  to consult with him on how to start a company doing the same thing in their hometowns (he charges a consultation fee).

 

This is a service every cleaning foreclosures business can offer.

 

2. Pool Servicers: Pools have to be drained, refinished and/or covered when a house is foreclosed on. Otherwise, they are a magnet for mosquitoes (because of standing water), and a danger to neighborhood kids and pets.

 

So banks, realtors and investors hire pool cleaners to handle the work that needs to be done. The average cost is around $400 according to the pool cleaner featured in the piece.

 

3. Trash Outs: Otherwise known as hauling away the junk and debris from a foreclosed property. Many times, these are handled by junk haulers. But, it is a foundational service any foreclosure cleaning business has to offer. This is mostly the kind of work banks will expect foreclosure cleaning companies to handle.

 

The company featured in the article doing this reports being booked through 2009 already.

 

4. Property Preservation: Property preservation companies may be the closest things to a full-service foreclosure cleaning business in that they do any and everything necessary to protect the lender’s asset (the house) until it is resold. So they may maintain the lawn, remove debris, fix broken windows, etc. 


5. Board Up Professionals:
Board up professionals literally board of the access points of foreclosed homes, where necessary. This means windows and doors. Banks and realtors use these professionals to prevent vandals and vagrants from damaging and/or occupying a foreclosed property.

 

This is an easy add-on service for businesses that handle cleaning foreclosures.

6. Locksmiths: While a basic service, it is a necessary one in the foreclosure process. Locks have to be changed once previous owners vacate a property. And with mounting foreclosures, the business owner featured in the article mentioned above said that for the first time in his company’s 97-year history, he was working weekends.

Cleaning Foreclosures: A One-Stop Shop Garners More Business

 

All of the above services can be offered pretty seamlessly by full-service foreclosure cleaning businesses. And, it can even garner you more jobs. How/why? Because realtors and bankers like a one-stop shop so to speak. If they can call one business to handle six different services, it makes it that much easier for them to use you.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

 

© 2009 Yuwanda Black for Foreclosure Business News

Cleaning Foreclosures for a Living? What the “No Stimulus Petition” Means for You

The article, Americans For Prosperity: “No Stimulus” Petition Circulated, on the HuffingtonPost, states that a conservative group named Americans For Prosperity started a petition against the stimulus package that was recently passed by the Senate.

 

In their protest, which garnered over 200,000 signatures, they stated, “Congress should not enact an expensive spending bill under the pretense of stimulus or recovery. No matter which amendments pass, the fundamental approach of dramatically increasing federal debt and spending is a mistake.

 

All other portions of the stimulus package aside, if you own or are thinking about starting a foreclosure cleanup business, what does this stimulus package mean for you? Well, as with most things in Washington, it’s not clear.

 

Following are two points Secretary Geithner made in his financial stability plan speech as it relates to housing, foreclosures and restoring this part of the market.

 

Summarizing Secretary Geithner: What the Stimulus Package Means for the Foreclosure Market

 

Point 1: There will be a comprehensive housing program. What this means is that there will be a specific plan to address the housing crisis. The details of the plan were not outlined, but are said to be coming “in the next few weeks.”

 

Point 2: The specific focus of the housing program. What is it? What many Americans who are losing their homes are hoping for, a reduction in interest rates and/or loan modification.

 

In the secretary’s words according to the official press release statement from the press room of the U.S. Department of the Treasure [ie, Secretary Geithner Introduces Financial Stability Plan], “Our focus will be on using the full resources of the government to help bring down mortgage payments and to reduce mortgage interest rates.”

 

The government is flexing its muscle somewhat here, as it will rely on resources “authorized by the Congress under the Emergency Economic Stabilization Act.”

 

So, given these disparate points of view – basically spend our way out of this housing crisis, or don’t spend our way out of this housing crisis, where does that leave you as a foreclosure cleanup business owner, or potential foreclosure cleanup business owner.

 

Unfortunately, Foreclosures are Here to Stay – At Least for the Time Being

 

Unless and until Washington moves to force lenders to renegotiate bad loans, more foreclosures are coming down the pike.

 

What the average American gets that seems to elude Washington is that is not banks that need bailouts – it’s homeowners. And, even though they [homeowners] are just as accountable for buying homes and getting into loans they couldn’t afford as the banks, why should the be the only ones to suffer?

 

If banks are getting bailouts to help them deal with all of these bad home loans on their books, shouldn’t the government be making the companies who are getting this bailout money work with homeowners to prevent foreclosures?

 

If the details forthcoming don’t address this one issue, foreclosure cleanup business owners will be, literally, cleaning out foreclosed properties for some time to come. Doing nothing won’t solve the problem. So, spend Senate spend – but do it wisely.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

 

© 2009 Yuwanda Black for Foreclosure Business News

Foreclosure Cleanup News: Why the $15,000 Tax Credit for Home Buyers Won’t Stop Foreclosures

foreclosures sweeping the market, and help to boost the sinking housing market. This tax credit is a blessing for some, and no help at all for others. Following is why it’s unlikely to stop foreclosures. This spells an evergreen opportunity for those who want to start businesses cleaning foreclosures.

 

Who the 15,000 Tax Credit for Home Buyers Helps

 

Like most things in life that seem too good to be true, this proposed credit helps those who ostensibly don’t need the help. If the following applies to you, then you’ll be happy if it passes:

 

You’re Looking at Buying a Home that Costs $150,000 or More. And, there are many of these on the market thanks to the ever-increasing home foreclosure rate. According to the 2/9/09 LA Times article, $15,000 tax credit won’t help low-income home buyers, experts say, . . . to take full advantage of the credit, buyers would have to earn enough to use it and spend at least $150,000 on a home.”

 

Who the 15,000 Tax Credit for Home Buyers Won’t Help

 

There’s just no other way to say it – if you’re poor and facing foreclosure, this tax credit does nothing to help you. There’s nothing in the bill to address things like loan modification and interest rate reductions. This is what homeowners who are facing foreclosure need to be able to stay in their homes.

 

Unless and until help comes for homeowners who are not looking to capitalize on the foreclosure crisis – but who are looking to prevent it from happening to them – home foreclosures will continue to rise.

 

In essence, this bill is a golden opportunity for those with good credit and stable jobs who are looking to buy a primary residence. But the reason foreclosures continue to mount is because people are losing their jobs, have dings on their credit because of said job loss, and who are struggling to make payments on homes that have lost 10%, 15% or 20% or more of their market value.

 

The authors of the aforementioned article said it best, ie: “Until you stabilize house values, you won’t be able to stabilize — let alone stimulate — the economy.”

A Bright Spot for Foreclosure Cleanup Business Owners

 

As long as the powers in Washington refuse to address the real home foreclosure problem – ie, the working class who are in bad loans (eg, adjustable rate mortgages (ARMS)) – foreclosures will continue to mount. And, this presents an evergreen business opportunity for those who want to start a business cleaning foreclosures. For someone has to be there to, literally, clean up the mess.

 

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.

 

© 2009 Yuwanda Black for Foreclosure Business News

Foreclosure Cleaning Business: Why You Should Never Discuss Rates or Prices Over the Phone

If you own a business cleaning foreclosures, or are thinking about starting one, one thing you should know going in is that you will get call after call from subcontractors wanting to know how to price jobs. They’ll call asking questions and make comments like:

 

“I own a landscaping company and want to pitch my services to foreclosure cleanup companies. I just need a little guidance on how you go about pricing your services;” or

 

“I am thinking of going into the foreclosure trashout business. I wanted to know about how much I can expect to make on a house — just a rough estimate is all I need, eg, for just doing the cleaning and trashout;” or

 

“I own a general contracting business and want to get into cleaning foreclosures. How do you decide what to charge for things like making repairs, painting, etc.?”

 

These are actual calls one foreclosure cleaning business owner says she receives on a daily basis.

 

Don’t get sucked into answering these types of questions. It’s not that you don’t want to share trade secrets or anything, or that you don’t want to be helpful to others. Rather, it’s for the following very practical reasons.

 

Foreclosure Cleanup Business Owners: 3 Reasons NOT to Talk Rate/Pricing w/Others

 

Time: If you’re actively running a foreclosure cleaning business, you probably won’t have the time to answer these types of questions. As foreclosures are a hot topic in the news now, many are interested in starting this type of business. And you could be fielding 5, 10 or 15 calls a day like this – from all over the country – and beyond.

 

These calls can take anywhere from 10 or 15 minutes, on up to a half hour or more, which brings us to the next reason not to take these types of calls . . .

 

You’re Not a Consultant: Many times, the callers will start out with one or two questions, but it rarely stops there. One question leads to the next, which leads to the next and on and on and on.

 

You’re not a foreclosure cleaning business consultant; you’re a foreclosure cleaning business owner. And if you start answering questions for every caller, it won’t be the last call you’ll get. Many will continue to call as they run into problems.

 

A lot of what needs to be learned in this business can only be learned by trial and error, as anyone in the business can tell you.

 

It’s Impossible to Answer Correctly: Prices and job rates depend on so many variables – location, size of house, work to be done, contractors to be hired, turnaround time, equipment to be rented, etc. that it’s practically impossible to answer correctly anyway. So, don’t even try.

 

Cleaning foreclosures – like any other business – takes time and commitment. And those who are serious about it will take it upon themselves to learn what they need to know to succeed.

 

Related Posts

Foreclosure Cleaning: Advice on What to Do and What Not to Do When Pricing Jobs

 

How to Price Your Foreclosure Cleaning Services

 

Foreclosure Cleaning: How to Price Your Foreclosure Cleanup Services

 

How to Bid on Foreclosure Cleaning Jobs: Inside Peek at an Actual Foreclosure Cleanup Bid

 

Cleaning Foreclosure Properties: Learn How to Price Jobs by “Spying” on the Competition

 

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know to start a foreclosure cleaning business, log on to ForeclosureBusinessNews.com for 200 pages of first-hand information from the owner of a leading foreclosure cleanup company in Atlanta, GA.© 2009 Yuwanda Black for Foreclosure Business News