There are several ways to price foreclosure cleaning jobs. The method discussed here is a very simple, straightforward one because all you have to do is figure out your costs and job markup.

Add costs to markup and that will you give the “what to charge” amount. The formula looks like this:

Direct Costs + Indirect Costs + Markup = What to Charge

Foreclosure Cleaning: Example of a Job Priced Using This Formula

Job Particulars: Say you are asked to submit a bid on a job for a simple trashout and cleaning of a house.

Cleaning particulars: Not a white glove clean, but a broom-swept and major appliance clean (eg, clean tub, toilets, refrigerator; sweep floors; dust cobwebs).

The home is a 2-bedroom, 1 bath, 1,100-square foot ranch. The job should take approximately 5 hours. Once you look at it, you know that you need to rent one small dumpster for the day. That will be enough to carry everything away.

For the cleaning, as it’s not white glove, you only need one person. For the hauling, you need at least two guys because there’s some heavy stuff — dressers, an old refrigerator in the garage, some mattresses, a bookcase, etc.

Estimate Time to Complete Job: 5 hours

So to cost this job out, let’s look at what your direct costs will be:

Dumpster Rental: $300

Disposal Fee: $75

Cleaning Crew: $75 (1 person, $15/hour x 5 hours)

Moving Crew: $150 ($75/day rate x 2 workers)

Misc Cleaning Supplies: $50 (broom, garbage bags, gloves, pine sol, masks, etc.)

Direct Foreclosure Cleaning Costs Total: $650

Now, let’s add in your indirect costs.

Let’s pretend that you know that all of your indirect costs are $2,000 per year (insurance, phone bills, gas, office supplies, etc.).

And, let’s say you plan on doing at least one job a week, starting part time. So, your indirect costs per month are $166 ($2,000 / 12 months).

So your indirect cost for each job is $41.66. So you would figure that into the job estimate.

Indirect Foreclosure Cleaning Costs Total: $41.66

Now you have two of the three figures you need. Let’s say you decided that you want to operate at a 35 percent markup (that is, you want to make at least a 35 percent profit on every job you do). This is different for each person and is discussed in detail in the next chapter on soft pricing.

To get the third figure — the profit — you multiply .35 x 691.66 (41.66 + 650). That’s $242.08. Not bad for four hours of work on the weekend.

Percentage of Foreclosure Cleaning Job Profit: $242.08

Totals: $242.08 + 41.66 + 650 = $933.74

Read more on Pricing, Estimates, Bids and Contracts for Foreclosure Cleaning Jobs

May be reprinted with the following, in full: The above was excerpted from The Pricing Guide for Foreclosure Cleaning & Real Estate Service Businesses: How to Price Jobs for Profit. Learn everything you need to know about how to price foreclosure cleaning jobs, which can be found in this ebook at http://Start-a-foreclosure-cleanup-business.com.

Many entrepreneurs who have started foreclosure clean up businesses are new to entrepreneurship business. And, even if they’re not, giving an estimate may still stump many. Following are some tips for preparing to give an estimate that will not only make you appear more professional in front of clients, it will help you land more foreclosure cleaning jobs as well.

Foreclosure Cleaning Estimate Checklist

Gather the following before you go out to give an estimate.

Be Professional When You Go Out to Give an Estimate on a Foreclosure Clean up Job

Clipboard: This is a small detail that makes a big difference. The reason is, when you’re giving an estimate on a foreclosure cleanup job, you’re usually doing a walk-through of the property. Hence, you need something to write on and take notes on so that you can remember everything when you sit down to prepare the final estimate. This brings us to the next seemingly unimportant thing, ie:

Note Pad: Those legal yellow pads that are used by attorneys work great. Even a spiral bound notebook that you can tether to your clipboard works great.

Note Pad Tip: Try to use the same note pad all the time. Why? Because this way it’ll be easy to track the kinds of things you are asked to do on each job. This note pad will serve as kind of a log for future reference. You can use this log to adjust your service offerings based on what potential clients have asked for.

“But,” you may be thinking, “I can use my formally submitted estimate for this.” This is true. HOWEVER, not everything you’ve discussed with your client and taken notes on as you walked through a property will make it into your formalized estimate. BUT, it will be in your notes.

So, keep all of your notepads – and try to do more than scribble. Make your notes make sense so that when you look back at them six months from now, you’ll know what the heck you’re reading.

Contract: Assume that you’re going to get the job and always have copies of contracts on hand. That way, if the client hires you on the spot, you’ll be prepared to have them sign on the dotted line – on the spot.

Service Checklist: Having a service checklist handy will allow you to check off the particular foreclosure clean up services the job requires quickly. The aforementioned note pad allows you to fill in the details.

Foreclosure cleaning checklist tip: If the client is present when you’re doing the walk through to prepare an estimate, give them one of these checklists. Do this for two reasons: (i) to upsell; and (ii) to impress.

About Upselling: By having all of the services you offer in front of them, many times clients will say something like, “I didn’t know you offered this service. We actually need that done. Add it to the job.” This is classic, easy upselling.

About Impressing: Overtly and subliminally, you impress the heck out of potential clients when you are so organized as to have a service checklist to offer them. Many times, clients will hang on to it to remind themselves of all the foreclosure clean up services you offer.

Business Cards: Staple this to your service checklist. Never, ever let a prospect leave your presence without giving them a few business cards.

Oh, just think how professional your foreclosure clean up business will look when you operate this way. You’ll be landing foreclosure cleaning contracts in no time.

Read more on Estimates, Bids, Contracts and Pricing Foreclosure Cleaning Jobs

How to Bid on Foreclosure Cleaning Jobs: Inside Peek at an Actual $6,120 Foreclosure Cleanup Bid

Foreclosure Cleaning: Things to Look Out For When You Receive a Foreclosure Cleanup Work Order

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

Foreclosure Cleanup: The Easiest Way to Price Foreclosure Cleaning Jobs

Foreclosure Clean Up: How to Start This Biz and Start Making Money Quickly — without Spending a Lot

Copyright © 2009 Yuwanda Black for Foreclosure Business News.  Learn everything you need to know to start a successful foreclosure cleaning business.

Foreclosure cleaning is an excellent business to start — especially right now. Many get excited about it because they figure the work will flow in seamlessly. After all, “foreclosure homes for sale” signs are all over the place and it’s discussed on practically every newscast.

Well guess what buster, if you think foreclosure cleaning is a good business opportunity, so does your neighbor down the street, the guy in the cubicle across the way and the service station attendant you see when you pump gas twice a week. This means competition, which means you’re going to have to work to bring in the business.

Welcome to small business reality! You will spend about 80% of your time marketing when you first start a business — any type of business. Ask any successful small business owner how much time they spent marketing — and still do — and they will verify this.

Now that you know why your phone is not ringing with endless job orders, following is what you can do about it. Here are three concrete, cheap marketing ideas you can implement to start getting foreclosure cleaning jobs.

Foreclosure Cleanup: 3 Marketing Tips Guaranteed to Bring In the Business

Flyers: Hand deliver them to every place you even think can use the type of services you offer. This means more than realtor offices, but also junk haulers, insurance offices, mortgage firms, tax firms (they do work for all types of businesses, especially realtors), residential homes, etc.

Email: It’s easy to find the email addresses of realtors. Just go to realtor websites. Set up a full-on realtor email campaign. Contact 50, 100, or more per day. Now instead of focusing on foreclosure cleanup, pitch yourself as a real estate services firm. Why?

For one, realtors are inundated with foreclosure cleaning company literature. So to stand out, take a different tact. Introduce yourself as a full-service real estate property preservation firm. This not only helps your correspondence stand out, it prevents the realtors’ eyes from glazing over when they get yet another email from a foreclosure cleaning firm. It’s a subtle difference that can make all the difference.

Cold Calling: You know why cold calling is still the number one way to make a sale? Because it works. And, many hate to do it which is why if you do, you have a much better chance of landing jobs than your competitors.

Will it be easy? No. Will you get brushed off — a lot? Yes. Do you want to the business? Then pick up the phone. Make it a habit to make 5 or 10 cold calls a day. If you do 5 a day Monday through Friday, that’s 100 calls a month; 1,200 a year. The law of averages alone will land you some jobs.

Just because foreclosure cleaning is a hot business opportunity does not mean you don’t have to market to get the phone ringing. You do. This is why so many fail at owning small businesses. They get discouraged too easily. If you want to work for somebody else all your life, then fine, throw in the towel.

But if you want to make your foreclosure cleanup business a success, get off your butt and do the work it takes to get the phone ringing. There is plenty of work out there. Now go get it!

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

Since the foreclosure crisis started a few years ago, one of the most often-asked questions by business opportunity seekers has been, “How do you start a business cleaning out repossessed and foreclosed homes?”

But perhaps the first question should be, “Who will I market my foreclosure cleanup services to?” For marketing is the lifeblood of every business, and without a clear idea of who your clients are going to be, it’s going to be really tough to succeed — no matter how hot a business opportunity foreclosure cleaning is.

Following is one group to target that you may not think of right away, but who make fertile ground for which landing foreclosure cleanup jobs.

Junk Haulers: A Great “Partnering” Opportunity for Foreclosure Cleaning Companies

“Why junk haulers? Aren’t they ‘the competition?’”, you may be thinking.

Yes, they may very well be. But junk haulers make good companies to market to for the following reasons:

(i) Not Multi-Service Firms: Many junk and debris haulers are just that — they clear out and haul away junk and debris — and that’s it. While debris removal may be a service your foreclosure cleaning company offers as well, you can partner with a firm like this and outsource this portion of the job to them, while you handle the other portions of the job (eg, interior cleanup, minor repairs, lawn maintenance, etc.).

(ii) Not Fully Insured: Many junk haulers are not insured like a full-service foreclosure cleanup company would be. This makes them ineligible to handle a lot of what needs to be done to foreclosed homes for sale.

You see, most of these jobs are handed out by the REO (real-estate owned) departments of banks and/or realtors who handle foreclosures. The reason it’s important to know this is that they require proper insurance and business licensing before they will subcontract the work these properties need.

Their subcontracting guidelines vary by state, lender and/or municipality, so check with them to know exactly what you need in the way of insurance and business licensing. As a heads up, some of the types of insurance you’ll be asked for are liability, workmen’s comp and/or an official business license.

Many junk haulers may have some or none of these. Because many start out as sole proprietorships and never grow beyond that, they don’t have the full battery of qualifications to be able to take on jobs from banks and realtors as primary subcontractors. But, they make perfect subcontractors for you if you’re a full-service foreclosure cleaning company with the proper credentials in these areas.

So be sure to target junk haulers when you start to market your foreclosure cleanup services. While everyone else is inundating realtors and banks (and you should be also!) with their marketing materials, you can also start building relationships and pulling in jobs from these types of businesses as well.

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

If you have a business cleaning foreclosures, or are thinking about starting one, there is plenty to learn. This is especially true when it comes to pricing, bidding on and giving out estimates for jobs. Here, we will tackle the estimate – as in, two reasons you should not give a detailed estimate.

Foreclosure Cleaning Business Owners: 2 Reasons Not to Give Broken Out Estimates

Estimate Source: One reason not to give detailed estimates is that many times, you are just being used to as an “estimate source.” 

To explain, most of your foreclosure clean out jobs are going to come from realtors and/or the REO departments of banks. This is important to know because many of them have to submit two or three estimates to their superiors before they can outsource a job (ie, hire a foreclosure cleaning company).

And, this is why giving out detailed estimates – in the beginning – can be a waste of time for you. Putting together a detailed estimate takes time. So in the beginning, just give whoever is asking for the estimate a job rate – on your company letterhead of course, so it’s official.

If they ask for a more detailed estimate, tell them that you can provide that if you’re hired for the job. Stress that the job estimate won’t change, but that it is your company policy to only give out detailed estimates once a contract has been signed.

The next point will clarify even further why this is important.

Price Shop: Many times when you provide a detailed estimated, it is used to subcontract out certain parts of a job – to other foreclosure cleaning companies.

For example, let’s say you bid on a job that came out to $5,000. You included $1,200 for the painting; $600 to hang sheetrock; $2,000 for the trashout; and $1,200 for exterior painting.

Now, your profit is built into each of these. So a realtor, banker, investor – whoever asked for the estimate – could ostensibly take this and start to price shop. Take the painting. What if the person requesting the estimate called around and got someone to do the interior and the exterior painting for $1,500? That’s $900 less than what you charged (a total of $2,400 for exterior and interior).

With your estimate in hand, they can use you as a bargaining chip, ie, “We already have a company that’s going to do it for $2,400? Can you beat that?”

And, this is why if you own a business cleaning foreclosures, you should only quote job rates – until a contract is signed. Then, and only then, should you give a more detailed estimate.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lucrative foreclosure businesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!

© 2009 Yuwanda Black for Foreclosure Business News

One of the most often-asked questions many new foreclosure cleaning business owners have is how to price their services. Especially if you have no previous business experience, it can be difficult to know exactly how to do it so that you don’t under charge or over charge. Following are three specific things you can do to price your foreclosure cleanup services right.

Foreclosure Cleaning: What to Charge?

Know What You’re Pricing: Underpricing is one of the main reasons many small business owners fail. If you own a foreclosure cleaning business — ie, a service business — it’s particularly important to figure in the “cost” of time and labor. And, this is why so many small business owners fall short in their pricing.

So, how do you come up with a fee for your time and labor? Quite simply, think of yourself as a hired worker. How much would you hire yourself out for, eg, $10/hour, $15/hour, $20/hour, etc. Then, you simply add that on to the cost of “hard goods,” which brings us to the next item on the list — the cost of supplies.

Pricing Supplies: Pricing supplies for your foreclosure cleaning business is very easy. Before we get to how to price them, you may be wondering what types of supplies you will need. They include cleaning chemicals (eg, bleach, degreasers, glass cleaners, chrome cleaners, mold and mildew cleaners, etc.). 

Then there is the cleaning equipment you will need, eg, brooms, mops, gloves, buckets, sponges, dusting cloths, masks (it’s a good idea to get in the habit of wearing these because some properties you encounter will be so filthy you won’t be able to stand the smell), etc.

Now, on to the cost of supplies. You can find this out in a couple of ways.

2 Ways to Price Supplies

(i) Visit local stores that sell cleaning supplies. This can a Lowe’s, Home Depot or Sam’s Club. It’s best to visit those that sell in bulk, because ostensibly, that’s how you will be buying supplies. Spend several hours visiting several outlets and write down the prices. This is business research and will serve you well for a long time. You’ll be able to price jobs much more quickly when you know off the top of your head in and around what supplies cost.

They would be very much willing to help you out since you are now a prospective client. In fact, they might even make your job easier since they can give you a brochure of their products.

(ii) The second way to find out the cost of supplies for your foreclosure cleaning business is to buy some and do a cleaning job. Start with your house or the house of a friend. This is good because not only will you find out the cost of supplies, you’ll find out how much of each it takes to clean a home of say, 2,000 square feet.

This will also give you insight into how many hours you will spend to clean a house of this size, which means you can figure out how much to pay yourself (or workers) for labor.

Pricing Tip: When you visit local outlets, tell them what type of company you’re starting. They’ll more than likely go the extra mile for you — a prospective new business client — by giving out product brochures, telling you which cleaners work best for which jobs and other cleaning industry trade secrets professionals like you will need to know.

Check the Competition: One of the most important things you need to do when trying to figure out how to price your foreclosure cleaning services is to find out what the competition is charging. While you may want to pay yourself say $25/hour, you may find out that this cost is making you much more expensive than the competition, so you need to scale back to $20/hour.

Simply call up a few companies and pretend to be a customer in need of their services (yes, it is a little underhanded, but it is done all the time in the name of free enterprise; it’ll happen to you to if you start a business, so don’t think you’re doing anything terrible). Be prepared to give specifics, ie, how many square feet, what services you need done, etc.

Another advantage of doing this is that you get a good idea of how to handle service calls. Pay attention to how they question you, what they ask you, how they ask to schedule appointments, etc. You can use this information so formulate your own phone consultations.

If you do these three things, you will be able to price your foreclosure cleaning services almost right. And the reason we say almost is because there is a lot of on the job learning in this business. Every foreclosure cleanup job is different and you will learn from each one that you do.

But, if you’re new to this business — or small business in general — these are excellent tips to use to start pricing your foreclosure cleaning jobs.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full:  To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lucrative foreclosure businesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!

© 2009 Yuwanda Black for Foreclosure Business News

Foreclosure cleanup businesses can offer a broad range of services to realtors, bankers, mortgage companies and private investors. Which services to offer depend on a lot of factors, five of which are discussed here. Just because a business can offer a service doesn’t mean they should. What is meant by this? Read on to find out.  

Foreclosure Cleaning Companies: 5 Factors That Help Determine Service Offerings

Startup Capital: This is perhaps the number one thing to consider when trying to decide which foreclosure cleaning services to offer. As home foreclosures mount, many would-be entrepreneurs recognize the potential of this type of business and want to jump in with both feet. This is understandable.

But, much like learning to swim, you have to learn how to navigate the shallow waters before you can dive into the deep end. Otherwise you can find yourself in real trouble – ie, out of business – before you even get started good.

So, if you don’t have all the equipment necessary to open a full-service foreclosure cleanup business, start with simple trashouts. This requires little more than a vehicle and some muscle. And, you can rent a truck if you don’t have one already.

Know-How: Again, foreclosure clean out business owners need to have knowledge in a lot of different areas – ie, contract negotiation, pricing, how to hire and work with subcontractors, placing bids, etc. Every job is a learning experience. If your knowledge is limited in business, again, start small –  offering one or two services – and then add on as you feel more comfortable.

Simple services like lawn maintenance and trash/debris removal are two major requirements of this industry. So, start with these services. Once you’re comfortable pricing these jobs, invoicing for them, hiring workers, etc., then you can add small repairs, then painting and on and on and on.

Location: Location is a factor in determining which services to offer in your foreclosure cleaning business for several reasons:

Cost of Supplies: This goes to your startup capital. If you live in the northeast, you might find that supplies are more expensive than in the southeast. For example, do you have snow removal equipment – which may be required of some jobs in the northeast. If you started a foreclosure cleaning business in the south, you wouldn’t have to worry about that as a cost.

The Weather: Speaking of climate, it affects the busy/slow season of the foreclosure cleanup business. Hence, the amount of money you can make at any given time. There’s usually more work in this business during warmer months. If you live in a city/town where there are lots of foreclosures – and the weather is in a warmer climate year round, then you’ll probably have more work and with fewer startup costs than someone who lives in a colder climate.

As you can see, there are many factors to consider when starting a business – any kind of business. The main thing to remember about starting a business cleaning foreclosures is that it’s okay to take your time. Don’t get in over your head; build slow. For, if you do it right, you’ll  have a lucrative business for years to come.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lurcative foreclosure bsuinesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!

© 2009 Yuwanda Black for Foreclosure Business News

In the 1/20/09 MSN Money article, Foreclosures sting even best builders, journalist Todd Harrison writes, “Besieged by collapsing home prices and frightened banks scrounging for cash, even the real-estate industry’s brightest stars [home builders] are finding there’s no place to hide.”

In plain language, it’s not just homeowners who are being hit hard by the foreclosure crisis – home builders are suffering too. Many of them are going out of business, leaving communities with unfinished homes, empty lots – and lots of opportunity for foreclosure cleaning companies. Following is how.

When a builder goes under and properties are left unfinished, savvy investors are the most likely buyers. And, before and after they finish a renovation, they hire foreclosure cleanup companies to do the commercial cleaning needed, eg, lawn maintenance, hauling away trash and debris, boarding up broken windows and doors, etc.

According to the aforementioned article, “It’s estimated that over 20% of the nation’s homebuilders have closed their doors . . .” This means lots of unfinished homes to secure, clean out haul away trash, etc.

How to Find  Home Builders to Pitch Your Foreclosure Cleaning Services To

Following are two ways to find out who the major homebuilders in your area are.

The Grassroots Method: When a community is being constructed, usually the builder has a big sign in front, eg, “An XYZ Community,” (with XYZ being the name of the construction company).

Simply by driving around, you can write down the name of the companies that appear on the signs in a newly constructed community and look them up on the internet to pitch your foreclosure cleaning services. While this can be time-consuming, it’s an excellent way to get to know the “players” in the home building game in your community.

The NAHB: The NAHB is the trade association for homebuilders. NAHB is an acronym for the National Association of Home Builders. On their website, NAHB.org, you can find out everything you need to know about builders in every state in the union.

The site also has information about trade shows, other meets and events, press releases pertinent to the industry and a whole lot more. It’s an excellent site to bookmark if you’re interested in building your foreclosure cleaning business and want builders as part of your client base.

Why Builders Make Great Clients for Foreclosure Cleaning Companies

Lots of Business: There’s an old saying that goes, “the shortest distance between two points is a straight line.” For foreclosure cleaning business owners, this means making a straight beeline to builders. After all, they build homes and use companies to do commercial cleaning.

Industry Contacts: Builders have many contacts – like realtors, they know other contacts you can get business from.

Patience is the Name of the Game When Targeting Homebuilders

Getting close to builders is tougher than making contacts with realtors. After all, there are fewer of them, and many already have their contacts in place. BUT, if you can patient and consistently network and market to this niche, eventually you will get business from them.

And, what a payoff it can be! While landing the “big fish” may take some effort, for foreclosure cleaning company owners, builders are truly the “catch of the day” worth the effort it takes to reel in.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lurcative foreclosure bsuinesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!

© 2009 Yuwanda Black for Foreclosure Business News

If you want to start a foreclosure cleaning business, but don’t think it’s possible because you don’t have the startup capital needed, following is a solution you may not know about. It’s one used by many small businesses who have a cash crunch – whether they’re just starting out or are growing too fast. What is it?

Factoring. Never heard of it? Read on.

Have a Business Cleaning Foreclosures? A Surefire Way to Get the Cash You Need to Run Your Business

A factor is a company that gives a business a loan based on their receivables (ie, invoices). This is the way it works.

Say you bid on – and win — a job cleaning foreclosures that’s going to gross you $8,500. But, you need to rent a dumpster and a truck, pay four temporary workers, buy industrial cleaning supplies and pay an HVAC professional to re-install a water heater that vandals had damaged when ripping out the copper wiring.

And, let’s just say this is going to cost you $1,950. You know you can do the job, but you can’t afford to lay out the almost two grand it’s going to cost to get the job done and then wait 60-90 days to get paid.

Well, this is when a factor can help. You simply submit the invoice to them and they will fund it (ie, lend you the money upfront), usually within 24-72 hours. Now, it costs you a hefty percent – usually in the neighborhood of 10-20%, but you don’t have to wait to get paid from the bank that you did the job for.

Foreclosure Cleaning Business Owners: What You Should Know about Factors

Following are a few upfront facts you should know about working with factors.

Application: You have to fill out an application. This simply involves giving them all of your business information, eg, EIN number, how long you’ve been in business, banking information; type of business; insurance info; etc.

 No Credit Check: Working with a factor is not credit based. What this means is your credit is not important because the factor bases their decision to fund you on the institution you’re getting paid from. So, if you’re doing foreclosure cleaning and you’re being paid by a major bank like Chase for example, then they look at Chase’s credit – not yours.

All or Nothing: Some factors require that you factor all of your invoices with them. Don’t sign on with one like this. You want to look for a factor you can use on an a la carte basis – eg, factor only those invoices you want and/or need to factor. If you can afford to wait to get paid for a $1,200 job, then wait. Why give away profits when you don’t need to.

Working with a factor is a great way to grow your foreclosure cleaning business. But, take the time to investigate fully before you sign on with one.

May be reprinted on your site, blog, newsletter, newspaper, etc., with the following attribution, in full: To learn everything you need to know about how to start a foreclosure cleaning business, log on to http://ForeclosureBusinessNews.com. The site offers a plethora of information on buying foreclosures, preventing foreclosure, starting lurcative foreclosure bsuinesses and the most recent news in/on/about the foreclosure industry. If it’s about foreclosures, you’ll find it at ForeclosureBusinessNews.com!

© 2009 Yuwanda Black for Foreclosure Business News

There are plenty of foreclosure homes on the market right now, which makes it a burgeoning opportunity for foreclosure clean up companies. Many new business owners in this sector don’t know what to expect though when doing jobs.

They have questions like, “What types of cleanup do foreclosure homes require?” For example, is it mostly trash removal, cleaning, repairs, etc. Every foreclosure job is different. Following is why.

Age of House: Older homes, in general, require more cleaning and repairs than newer homes. The reason we say general is because of previous occupants, which brings us to the next point.

Occupants: Many foreclosure homes are purposely vandalized by previous occupants. Losing one’s home is an emotional time. It pushes many over the edge and they take that anger out on the house. Their intent is to harm the lender in many cases, not the house.

So when a foreclosure cleaning crew enters, they may find holes punched in sheetrock, doors torn off hinges, feces spread throughout (more common than many think), water purposely left running, fixtures torn out and a host of other damage.

Of course, this requires much more work for the foreclosure cleaning crew than a home where the occupants left peacefully.

How Long Vacant: Homes that are left vacant for a long period of time tend to require more work for foreclosure clean up companies. This is because, the longer a home sits vacant, the more likely it is to be vandalized.

Thieves: Thieves come in to rip copper out of the walls to sell. This means destroying sheetrock to get to the copper; and breaking doors and windows to enter the property initially.

Vagrants: Or, you may have vagrants who take up residence. Usually, there’s no running water when a home is vacant. So the foreclosure cleaning crew will likely find filth, waste and garbage throughout the property.

Vandals: Everything from neighborhood kids throwing rocks and knocking out windows, to graffiti, to people dumping garbage – homes that sit empty for long periods of time invite all of this.

One foreclosure cleaning business owner said that garbage dumping is common when homes are left vacant.  And, if the home is empty for a long period of time, it can take several dumpster loads to remove all the waste – from the inside and outside of a foreclosure home.

Most foreclosure cleaning jobs are simple trashouts, eg, hauling out what previous owners have left behind. But as you can see, a lot of what foreclosure homes require from the cleanup crew depends on several factors.

May be reprinted on your blog, website, newsletter, etc. with the following, in full: To learn everything you need on how to start a foreclosure cleanup business, log on to ForeclosureBusinessNews.com. The site offers wealth of information on how to make money in real estate during the foreclosure crisis, eg, as a foreclosure realtor, a foreclosure cleaning company, doing short sales, buying foreclosures cheap — and more!

© 2009 Yuwanda Black for Foreclosure Business News