Foreclosure Cleaning: How to Decide What to Pay Hired Help

If you own a business cleaning foreclosures, eventually you’re going to have to hire help. This is especially true if you want to expand and make a real go of your business. Following are two common payment options.

 pay

By the Job: This tends to be one of the most economical ways to pay help workers when you need help on a foreclosure cleaning job. Why? Because it helps you to keep control of your costs. Under “Labor” you can put down, with certainty, a number; there are no surprises.

 

Another advantage of paying like this is that it tends to be fair to both parties. The worker knows how much they are going to get before a job begins. Most appreciate this and if you pay a fair wage, they will sign on with you again and again, making it easy to recruit help as you need it.

 

Foreclosure Cleaning “Day Wage” Tip: Building a Crew

 

A residual advantage of paying a set rate for each foreclosure clean up job is that you will tend to build up a go-to crew. As mentioned above, if your “day rate” is fair, you’ll have workers who will gladly take as much work as you can give them (if they’re available).

 

When jobs come in, you won’t have to go on a head hunt each time. You can just call your “regulars” and see if they’re available. And, even when they’re not, most of the time, they have friends, family and acquaintances that they will refer to you.

 

Bottom line: Build a reputation as a foreclosure clean up company that pays a fair day wage. It will pay dividends over and beyond what you will find on a balance sheet (eg, save recruiting time, worker loyalty, etc.).

 

By the Hour: This can get a bit tricky in that if you don’t know how to calculate how long it will take you to complete a foreclosure cleaning job, you can eat up a lot of your profit. This is especially true if you have a crew of more than a few workers.

 

Note: The following is first-hand advice. I used to own a staffing agency and recruited in the industrial sector for a couple of years, so this is first-hand knowledge.

 

Foreclosure Cleanup Hourly Wage Tip: Call a local staffing agency like Labor Ready (because they handle jobs like construction cleanup) and ask what they charge for day laborers. Just tell them that you own a foreclosure cleaning business and have a job coming up where you might need to hire workers. They’ll ask you to describe the duties the workers will be doing, and then they’ll quote you an hourly rate.

 

Most staffing agencies take anywhere from 40-60% of the hourly wage you pay them for profit. So, for example, if they quote you $20/hour, they’re probably paying the worker $8 to $12 per hour.

 

In this case, you have two options: You can do your own recruiting and use their figures as a benchmark for what to pay, or, you can use them to staff the job.

 

Just know that staffing agencies that specialize in day-labor-type positions (eg, construction cleanup) have very strict policies about what their workers can and cannot do. This is because of workers’ comp insurance. Staffing agencies pay a mint for this.

 

For example, most say that workers can’t be on ladders, which means no cleaning, lifting, etc. in high places.

 

Foreclosure cleaning is a multi-faceted business. Hence, deciding what to pay hired help is based on a lot of factors. No matter which method you use, always keep your bottom line (ie, how much you want/need to make) in mind.

 

Note: Foreclosure cleaning jobs and pricing (of which this topic falls under) will be discussed in more detail in the forthcoming ebook, Pricing Guide for Real Estate and Foreclosure Cleaning Businesses. (Release Date:  8/4/09).

P.S.: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family.

P.P.S.: Find Foreclosure Jobs! Did you know that you can find a foreclosure job with a simple click of your mouse? You can using Foreclosure Business News’ new job search portal. It’s just to the right here. You can search by job title, category, keyword, city and/or state. Find your dream job in this exciting real estate niche today!

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Foreclosure Cleaning: What You Should Know About HUD Pricing Guidelines

Many foreclosure cleaning business owners are getting jobs from realtors who are being paid by the Department of Housing and Urban Development (HUD). This is a good thing on two levels:

Info on HUD Pricing Guidelines for Foreclosure Clean Up

Info on HUD Pricing Guidelines for Foreclosure Clean Up

(i) that government funds are available to help neighborhoods recover from the foreclosure crisis. In fact, According to the AP article in the Mercury News, Half of housing grants used to buy foreclosures, just over half of $4 billion allocated to the Neighborhood Stabilization Program, the Obama administration’s program to help homeowners facing foreclosure, will go to local governments to help them buy and fix up foreclosed properties; and

(ii) it means more foreclosure for foreclosure clean up companies.

But, as with anything that the government appears to touch, there are some things that foreclosure cleanup company owners should know about HUD pricing guidelines. This will help them price their jobs right and get paid quicker.

Set Property Amounts: HUD gives those who own the property (aka mortgagees) set amounts that they can spend on each job/repair to be done on a property. For example, there will be a set amount allocated for yard maintenance, a set amount to repair a broken window and a set amount to remove existing trash and debris.

In order not to over price or under price your services, it helps to know what this is before you put together your bid on a job. Otherwise you could be losing foreclosure cleaning jobs that you thought were price just right.

Getting Paid More: This may seem to contradict the above advice, but there are instances where you can get paid more for a job – over and above HUD rates. But, it depends on a lot of factors, eg, who is handling the contract for the job, costs associated with the job, what part of the country the job is in, etc.

To get paid over and beyond the rate HUD has set for a job, the mortgagee (person/entity that owns the property) must get approval from a HUD representative.

Licensed and Insured: It helps to be a licensed and insured foreclosure cleaning company in order to get HUD foreclosure cleaning contracts. Why? Because many HUD realtors, banks and lenders will not hire you/your company if you’re not.

It presents too much of a liability for them if you are hurt on the job, for example, and are not insured. Also, because you’re dealing with government money, many of them like a paper trail attached to invoices (eg, the name of the company that did the work, whether or not they have liability insurance, etc.).

The Beauty of Working with a Realtor Who Handles Foreclosed Homes and Has HUD Money

It’s ongoing work. Once a realtor uses you and you do a good job on a foreclosure cleaning job, they’ll hire you again and again.

P.S.: Foreclosure Cleanup LLC will publish a Pricing Guideline ebook on 8/4/09. Send an email to info [at] ForeclosureBusinessNews.com to be notified once it comes out.

P.P.S.: Find Foreclosure Jobs! Did you know that you can find a foreclosure job with a simple click of your mouse? You can using Foreclosure Business News’ new job search portal. It’s just to the right here. You can search by job title, category, keyword, city and/or state. Find your dream job in this exciting real estate niche today!

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted on your blog, website, newsletter, newspaper, etc. with the following text, in full (including live links): To learn more about pricing foreclosure cleaning jobs, get the Pricing Guide for Real Estate and Foreclosure Cleaning Businesses at http://ForeclosureBusinessNews.com (Publish Date: 8/4/09). Also get everything you need to know about how to start a foreclosure cleaning business.

Home Foreclosures Keep Rising: 6 Reasons Why

Early last month,in the post, Foreclosure Services Needed More than Ever as Foreclosures Top 1 Million So Far This Year, “We’re just at the forefront of this crisis.” Unfortunately for a lot of homeowners, we were all too correct.

According to the US News and World Report article, Why Do Home Foreclosures Keep Rising? 6 Things You Need to Know:

Foreclosure filings were reported on more than 1.5 million properties in the first six months of the year, a 15 percent increase over the same period of last year, according to RealtyTrac. All told, 1 in 84 American homes—or 1.19 percent—received a foreclosure filing during the period.

In the last paragraph of the article, the editor writes that housing experts expect this trend to continue for the next year to a year and a half.

While that’s bad news for the economy, it’s presents an excellent outlook for those who want to start a real estate-related services business like foreclosure cleaning and/or property management.

P.S.: Find Foreclosure Jobs! Did you know that you can find a foreclosure job with a simple click of your mouse? You can using Foreclosure Business News’ new job search portal. It’s just to the right here. You can search by job title, category, keyword, city and/or state. Find your dream job in this exciting real estate niche today!

Copyright © 2009 Yuwanda Black for Foreclosure Business News

Foreclosure Cleaning: High-End Homes Next on the List – The Problems They Pose

According to the article, High-end home foreclosures next housing dilemma? on a Raleigh, NC news website:

Experts say that the increasing number of high-end homes going into foreclosure is the next big housing dilemma.

This presents another opportunity for foreclosure cleaning business owners. It also brings up several situations that need to be addressed. Following are two.

High-end Home Foreclosures Are on the Rise

High-end Home Foreclosures Are on the Rise

Who You’ll Be Dealing With: With the economy continuing to worsen, you may be dealing with a range of contacts to get these types of foreclosure cleaning jobs (for more on this, read Foreclosure Cleaning: Why How Much You’re Paid Depends — A Lot — on the Client). For example, builders – or the homeowners themselves may be the ones to call you – not the bank. Why?

In part this can be explained by how the foreclosure process unfolds when it comes to higher-end homes. Homeowners in this income bracket may have held onto their homes longer. So, they may call a foreclosure cleaning business owner to help them get their home ready for market – because they’re trying to do a last minute sale.

And, take the case of builders . . . consider this: the foreclosure crisis has hit the high-end market later than lower-priced homes. Hence, many builders of are just now beginning to sit on a lot of inventory. As properties sit empty, they are prone to vandalism and other types of property crime. So a builder may call in a foreclosure cleaning company to board up, repair and/or maintain a property until it is sold.

The bottom line here: if you’re a foreclosure cleanup company operator and you’re accustomed to getting calls from banks and real estate agents; now, be prepared to also start hearing from builders and high-end homeowners themselves.

Neighbors: When cleaning a foreclosed home – depending on the condition – it may take several days to finish a job. This means you may have to bring in, and leave, equipment, for example. Or, leave a property untidy for a day or two – until the job is completed.

But, this may not be acceptable in some neighborhoods, ie, HOA rules may have certain restrictions regarding how cleanup, repairs and other property renovations are carried out. You may, for example, have to get homeowner association approval and give details about the job, eg, expected date of completion.

The Fight between an HOA Board Member and a Foreclosure Cleaning Business Owner

One Atlanta-based foreclosure cleaning business owner recounts having a run-in with a homeowner association board member. A bank had hired the company to do repairs on a foreclosed home that had been vandalized in the community. The board member didn’t want a window to be boarded up until the new window could be installed because it looked “unseemly.”

The foreclosure cleanup business owner tried in vain to explain to the HOA board member that with rain on the way – and the real threat of further vandalism to the property imminent – they had no choice but to leave the “unsightly” boards in place until the new window arrived.

Eventually, the bank representative interceded – siding with the foreclosure clean up business owner.

P.S.: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family.

P.P.S.: Find Foreclosure Jobs! Did you know that you can find a foreclosure job with a simple click of your mouse? You can using Foreclosure Business News’ new job search portal. It’s just to the right here. You can search by job title, category, keyword, city and/or state. Find your dream job in this exciting real estate niche today!

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted on your blog, website, newsletter, newspaper, etc. with the following text, in full (including live links): To learn more about how to market your foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com, and get the marketing guide, How to Market Your Foreclosure Cleanup Business, a how-to marketing manual specifically for foreclosure cleaning business owners.

Foreclosure Cleanup: 2 Things You Should Know about Cleaning Bank-owned (REO) Properties

Dealing with banks can be a whole other ball of wax when it comes to foreclosure cleanup jobs. That’s because it’s heavily regulated – everything from how you submit invoices to when you get paid is pretty much pre-determined. There is no wiggle room.

 

As they are lucrative foreclosure cleaning jobs though, if you own a foreclosure cleanup business, you want the business. Following are two things you should be aware of going in though. It will make your life so much easier – especially when it comes to getting paid.

 

bank-owned-foreclosures

1. Invoicing Banks for Foreclosure Clean Up Jobs: Quite simply, if your invoice is not done right, you will delay getting paid. You may be thinking, “But I have an invoicing system. It’s official, professional and has never presented a problem before.”

 

But banks are different. They have their own guidelines that you must follow. For example, you will almost always be required to submit dated and time-stamped photos with the invoice. Some will want the photos submitted as part of the invoice; others will want the photos submitted separately.

 

While things like this may seem minor (or a royal pain in the toukas), it must be done to the banks satisfaction before you will be paid. You see, the invoice may go to one department inside the bank, while the photos of the foreclosed property may go to another department.

 

Whoever your bank contact is will tell you how to submit your invoice. And, even when you follow their advice to to the letter, there may still be revisions. So, just work with them until you get it right.

 

2. How Long the Bank Takes to Pay for Foreclosure Clean Up Jobs: This varies from bank to bank and state to state, but a normal lag time is 60 days. Sometimes, the broker or person who hired you to do the job may pay you after say, 30 days, and wait for the bank to reimburse them.

 

Don’t count on this though. Be prepared to wait up to 90 days to be paid by the bank for foreclosure cleaning jobs. Build this timeframe into your budget (operating capital) before you decide to take on a job. This way, if you have to hire outside help to do a job, you can either negotiate with them to wait to be paid (most workers won’t accept this), or be able to “float” the cost of the job yourself.

 

Cleaning bank-owned foreclosures (REO properties) can be very lucrative – if you keep the above in mind.
 
P.S.: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family.

P.P.S.: Find Foreclosure Jobs! Did you know that you can find a foreclosure job with a simple click of your mouse? You can using Foreclosure Business News’ new job search portal. It’s just to the right here. You can search by job title, category, keyword, city and/or state. Find your dream job in this exciting real estate niche today!

Copyright © 2009 Yuwanda Black for Foreclosure Business News