As we discussed at length in the last post here, 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012. One of the first things a lender has to do when a property is foreclosed on is have it secured.

This presents an excellent opportunity for foreclosure business owners to get in this type of business — quick, start making money right away — and all without spending a lot of money. Why/how?

Starting a Foreclosure Cleanup Business — On the Cheap

Foreclosure cleanup business owners can offer a range of services - everthing from pool cleaning and draining to general contracting (eg, putting up walls, repair broken windows and cabinets, replacing tile, etc.). However, some services require skill (and tools and licensing and experience) that many who want to capitalize on this small businesss opportunity don’t have.

But, almost anyone can offer simple securing of homes.

All most lenders want done is for windows to be boarded up, and locks to be changed on doors. Following is a little more info about what HUD requirements are for securing homes. Note: All of this info is provided in detail in the Foreclosure Cleanup Pricing Guide.

Excerpt: HUD Requirements for Securing (eg, Boarding Up Windows and Doors) on a Home 

When boarding is appropriate, all first floor doors and windows, including all basement windows and doors, should have plywood covering the entire opening and frame.  The covering should be secured with carriage bolts.  Eliminate any possible hazards that may be caused by protruding bolts used to secure boarding.  The use of nails is prohibited.

A lot of the specifications from HUD for securing (and other types of work, eg, trashouts and debris removal) vary by location. All of this detail is provided in the Pricing Guide.

Hurricane Season in the Southeast — A Good Way to Pitch Banks/Lenders about Securing Homes

It’s hurricane season in the southeast right now. And, according to a June 2009 article on CarolinaLive.com entitled Securing foreclosed homes during hurricane season:

More than 280,000 homes [were] in foreclosure in coastal counties in nine southeastern states.

That’s only going to get worse as the foreclosure crisis deepens. Hence, it’s a unique way to pitch lenders and realtors about securing foreclosed properties they own/handle. You’ll get a leg up on the competition because it demonstrates that you are in tune with what they’re going through and what they need handled. 

The bottom line is, if you want to start a foreclosure cleaning business — you dont’ have to start with a full range of services. Simple securing homes — a much-needed service for the next couple of years — can be an easy way to start this business — and start making some money right away.

P.S.: While the home foreclosure crisis has meant heartbreak for many, it’s meant opportunity for others. Read how one foreclosure cleaning business owner makes up to $40,000/wk.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Finally, an easier way to get foreclosure cleanup work is here. The Property Preservation & Real Estate Industry Contracting & Subcontracting Directory includes over 1,500 industry contacts to help you get more work - quicker and easier.

The Guide to HUD Contracting; and

HUD’s Updated M&M Contractors Contact List

It’s like putting your marketing on autopilot. Learn more.

P.S.: Read how one foreclosure cleaning business owner makes up to $40,000/wk.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Last week here, we discussed Errors & Omissions (E&O) insurance. As a foreclosure cleanup business owner, another type you’re likely to hear a lot about is General Liability insurance.

Here, we’re going to discuss what this is and how it differs from E&O insurance. Insurance is an important part of every business. And, it’s vitally important in services businesses like this one (ie, dealing with properties) where accidents, theft and a host of other problems can occur.

Hence, knowing what you need and why is critical to landing jobs. No insurance, no job. Proof? Read this Advice from a Banker Who Handles Foreclosed Properties.

What Exactly is Errors and Omissions (E&O) Insurance?

This type of insurance is commonly referred to as professional liability insurance. Professionals like realtors, brokers, financial advisors, etc. are required to carry it. It’s akin to malpractice insurance, for it covers errors and/or omissions (mistakes/mishaps) that these types of professionals make that cause financial harm to another party.

E&O insurance protects/covers those who carry it from lawsuits that relate to an error they may have made while providing their particular type of service.

Note: E&O insurance DOES NOT replace liability insurance. It must be carried separate and apart from standard general liability insurance.

In last week’s post, we explained why foreclosure cleaning businesses, for the most part, DO NOT need Errors & Omissions Insurance.

What is General Liability Insurance?

General liability insurance for the most part covers claims against bodily injury, personal injury, advertising injury and property damage. Now as a foreclosure clean up business owner, you DO need this type of insurance – for obvious reasons.

Note: Most are not familiar with “advertising injury.” This covers the policy holder in case they are sued for something like slander or false advertising.

The Primary Difference between Errors & Omissions and General Liability Insurance

Just in case you didn’t catch it, E&O insurance covers claims that result in a “financial loss” another party may have suffered because of your negligence (mistake, mishap, error).

General Liability insurance covers claims that result in personal injury, bodily injury, advertising, or property damage.

Foreclosure Cleanup Business Owners: What to Do If You’re Asked for an Insurance You Don’t Have

Many times, the company requesting the insurance may not know why it’s necessary for you to have it – especially in the case of E&O insurance. It is NOT an insurance the vast majority of foreclosure cleanup businesses need.

Impress upon the company requesting the insurance exactly what you do and exactly what type of coverage you have (and how much of it); also offer to send them proof.

If they persist in asking you for, for example, E&O insurance, ask they why you need it. Refer back to the June 4^th post on Errors & Omissions insurance for further clarification (ie, the portion that explains that you’re not a realtor or broker and therefore, are not required to have this type of insurance as a contractor/subcontractor).

Learn more about what types of coverage and how much of each you’ll need in this detailed booklet on foreclosure cleanup business insurance.

P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Some foreclosure cleaning business owners report being asked to prove that they have up Errors & Omissions insurance by larger contractors before they can be considered for subcontracting opportunities.

Here’s the real deal on this type of insurance.

ANSWER TO QUESTION ABOUT ERRORS & OMISSIONS INSURANCE FOR FORECLOSURE CLEANUP BUSINESSES

The answer is, you really don’t need errors and omissions insurance to handle simple trashout jobs.

Many of the larger companies probably ask potential subcontractors for it because they use the same application process as real estate agents and others who handle foreclosed properties. FYI, realtors are required – as part of their trade – to have E&O insurance.  Hence, it’s a box that must be checked on many forms for realtors.

If larger companies use the same form, many assume that if the box isn’t checked, then you are “missing” something – when indeed it is not required at all.

Simply inform those who request it that you are NOT a realtor (ie, you do not handle foreclosed properties). Impress upon them that you are a foreclosure cleanup business – and you are not required to carry Errors and Omissions insurance as part of your trade. Read more on the type of insurance you need for your foreclosure cleanup business.

Learn more about what types of coverage and how much of each you’ll need in this detailed booklet on foreclosure cleanup business insurance.

P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 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 Business News’s editor will be on vacation from Monday, May 24 through Monday, May 31st. The site will be updated again on Tuesday, June 1st. Meanwhile, enjoy the following posts.

Foreclosure Cleanup Business Advice

Foreclosure Cleaning Business Owners: Advice from a Banker Who Handles Foreclosed Properties on How to Land Foreclosure Cleaning Jobs

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

Foreclosure Cleaning: How to Get Non-Foreclosure Cleaning Jobs

Foreclosure Cleaning Business Advice: One Sure Way to Make Your Company Stand Out from the Competition

How to Get More Foreclosure Cleaning Jobs with Postcards

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

Foreclosure Cleanup: Why Winterization is a Lucrative Service to Offer on Foreclosed Homes

See complete library of ebooks on foreclosure cleanup and how to invest in cheap foreclosures.

Buy Foreclosures Cheap Advice

Foreclosure Homes for Sale: Why the Time to Buy is Now, Especially for First-time Homebuyers

How to Buy Foreclosures Cheap, Retire Early & Secure Your Financial Future

Stopping Foreclosure Advice

Foreclosure Lawyer: Need One? How Not to Get Ripped Off & Choose the Best One

Home Foreclosure News: Obama Admn Offers New Help for “Underwater” Homeowners  

Home Foreclosure and Your Credit: Details of the Mortgage Forgiveness Debt Relief Act of 2007

Stop Foreclosure: More than 90 Days Late on Your Mortgage? Here’s a Foreclosure Prevention Program for You

California Foreclosure Law: How to Stop Foreclosure Even If Your Home Is Sold at Auction

After reading this post (Foreclosure Cleaning Biz Advice: What Are “Assuming Institutions” & How to Make Money from Them), a bank exec who handles foreclosed properties dispensed some really good advice as to what he expects from foreclosure cleaning business owners who approach him for work.

And you know what, most foreclosure cleaning businesses are not giving him what he needs. This means that if you heed his advice, you may be able to land more foreclosure cleaning contracts.

Foreclosure Cleanup Business Advice: What a Bank Exec Who Handles Foreclosed Properties Said

Following are three things this bank exec who handles foreclosed properties looks for from foreclosure cleaning business owners:

Resume (or some type of professional profile)

List of Services and Rates; and

License and Insurance.

He wrote specifically (forgive the typos; it’s the info he dispenses that’s supremely important):

Your number 1 tip [in the aforemetioned post]  is a good one, not a day goes by where i am not bombarded with calls or people who drop in that want to clean my foreclosure listings. I always ask for a business card and a resume. 90% dont have a card and no one ever has a resume with them. So then i ask for a list of what they offer with any assoicated prices, again they are not prepared and last ly i ask are you insured, by then most of tehm are on their way out.

I know that is tough and cold but it is my name on the sign and i am resposnible for anything that goes wront for teh properties i sell and manage for the banks. [emphasis added] I have had people come back though and be prepared and they are no dioing a great job for me. So my keys are be a legitaimate business, be insured and be prepared, have business cards, a resume and literature of what you do.

As he outright states - and I’m paraphrasing — it’s his butt on the line if things are done right. And, he’s not about to risk it by doing business with comapnies that are unprofessional, unlicensed and uninsured, as we’ve discussed time and time and time again on this blog.

So heed his words — and you could start landing more foreclosure cleanup jobs.

Learn more about foreclosure clean up business insurance.

One of the easiest things you can do to make your foreclosure cleanup business stand out from the competition is to come up with a unique selling proposition – and market the heck out of it.

Right about now you may be shaking your head thinking, “I don’t even know what a unique selling proposition is, never mind how to market it.”

Well, don’t worry. Here we’re going to discuss it – and why it’s critical to the success of your foreclosure cleaning business.

Cleaning Foreclosures: Market Like the Big Boys to Bring in the Business

A unique selling proposition, or USP as it’s known in the Madison Avenue world of advertising, is quite simply the feature or features of a business that make it stand out from similar businesses.

Following is an example of a USP.

Burger King: Have it your way.

Remember, the song. It went:

“Hold the pickles, hold the lettuce, special items don’t upset us, all we ask is that you let us have it your way . . . Have it your way, have it your way, have it your way at Burger King.”

How to Choose a USP for Your Foreclosure Clean Up Business

Now that you know what a USP is, following is how to go about choosing one for your business.

Benefit: The most important thing to remember about a USP is that it should center around a benefit to the customer. In the example above, the benefit to the customer is that they can have their burger any way they want it.

Draw on Your Experience: For example, if you’re a general contractor who’s started a foreclosure cleaning business, make this part of your USP. It might be something like, “Foreclosure Cleaning Company XYZ: For all of your property cleanup and general contracting needs.” You get the picture.

The benefit to the customer is that you’re a one-stop shop. For example, many properties that need debris hauled out, they also need lite work done – eg, doors and windows replaced, sheetrock hung, painting, etc.

As a general contractor who now operates a foreclosure cleaning business, you can offer the client all of these services. This means they don’t have to go looking for a contractor to make repairs, in addition to a foreclosure cleanup company to haul away the trash and debris.

Make it Short: USPs should be short so they can be remember – 10-12 words at most, with five or six being optimal.

Once you’ve settled on your USP, craft a logo around it and market the heck out of it. Put it on your website, flyers, pens, uniforms, etc. Pretty soon, everyone will be saying, “You know, the foreclosure cleaning company, the one that handles ‘all of your property cleanup and general contracting needs.’”

And that’s exactly what you want – your foreclosure clean up company to be easily remember – so easily that your USP rolls off their tongue even when they can’t exactly remember your company name.

P.S.: Learn How to Market Your Foreclosure Cleanup Business Right — Right from the Start. While the foreclosure crisis has been a nightmare for many, it has presented a perfect small business opportunity for others. But in order to capitalize, you must know how to market your foreclosure cleanup business – turning it into a success like this foreclosure cleaning business owner — who rakes in $40,000/wk (not a typo).

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

As we talked about in this post on getting contracts for foreclosure cleaning jobs, when banks fail, it’s a good thing for foreclosure clean up businesses.

But, even more important than knowing the names of failed banks is knowing the names of the institutions that take over their assets. These are known as “assuming institutions” (aka “acquiring financial institutions”).

As we detailed in the linked-to post above:  

When a bank fails, it first falls in the hands of the Federal Deposit Insurance Corporation (the FDIC). Then, they usually go on to be bought or taken over by other banks and/or financial institutions because they have assets and customers who still need to be serviced. [These are the “assuming and/or acquiring financial institutions”]

Get Foreclosure Cleaning Jobs

The aforementioned institutions have a ton of assets on their books – from car loans to small business loans to real estate. And, this last kind of asset is what makes them are prime targets for getting foreclosure cleanup jobs because much of the real estate assets they hold are foreclosed properties.

And, what do foreclosed properties need?

Cleaning, trashing out, lawns mowed, locks changed, pools drained, windows boarded up – in short, all the types of services a foreclosure cleaning business can offer.

Spring is Here: It’s a Great Time to Get Foreclosure Cleanup Work

Now that spring has sprung and the warmer weather is here, it’s a great time to get foreclosure cleanup work. See the previous post to learn who exactly you should be making contact with to get foreclosure cleaning jobs from acquiring institutions.

Get Leads on Foreclosure Cleaning Contracts

Register your foreclosure cleanup business with HUD and/or your local housing authority to get the heads up on foreclosure cleaning jobs you may qualify for. One contract can jumpstart your business – taking it to the next level.

Read how one commercial cleaning company increased revenues from $225,000 per year to over $10,000,000 by getting government contracts. Your foreclosure cleaning business can be a success story like this to.

One of the professional niches hit hardest by the foreclosure crisis that began in the fall of 2007 was real estate agents. It remains so to this day. Many realtors left the game altogether – moving on to other types of work to feed their families and hang on to their homes.

But, some saw opportunity and retooled their skill sets – becoming Certified Foreclosure Real Estate Agents. If you’re looking to capitalize on the foreclosure crisis, you definitely want to make contact with one of these agents.

Why Certified Foreclosure Real Estate Agents Make Good Contacts for Those Looking to Buy, Sell or Clean Foreclosed Properties

They Get the Leads: Many of the homes foreclosed on during the mortgage crisis were FHA-insured homes. When these homes are foreclosed on, they fall into HUD hands; ie, the title of the property is transferred to HUD.

So in essence, HUD Certified Realtors are some of the first ones to get leads on foreclosed properties in a community.

They Handle a Property Until It’s Sold: When a property falls into the hands of HUD, they are then responsible for getting it ready to go back on the market to be resold (having the lawn maintained, fixing broken windows, getting trash and debris removed, etc.).

HUD uses local Certified Foreclosure Real Estate Agents – who in turn act as intermediaries between HUD, the bank and the property maintenance and like companies (eg, foreclosure cleaning businesses) – to whip a property into shape to be resold, rented or leased.

How to Become a Certified Foreclosure Real Estate Agent: Watch Out for Scam Programs

Since the foreclosure crisis started, a lot of entities have popped up offering courses and training in how to become a REO (real estate owned) agent, ie, a foreclosure agent.

HOWEVER, you should know that only the National Association of Realtors (NAR) offers an official, industry-accepted foreclosure certification course. NAR’s Short Sales and Foreclosure Certification Program (SFR) is currently the only recognized certified foreclosure agent program.

How to Find a Certified Foreclosure Real Estate Agent

If you want to buy foreclosed properties and/or get leads on foreclosed properties, one of the easiest ways to do it is to network with a foreclosure realtor. To find one, look for real estate brokers (who hold the licenses of real estate agents) that are registered with HUD. They’re the ones most likely to employ Certified Foreclosure Real Estate Agents.

Here’s a quick, easy way to find HUD agents.

More Ways to Get Foreclosure Cleaning Job Leads

Register Your Foreclosure Cleaning Business with HUD & Other Government Contracting Agencies

Also . . .

Get Foreclosure Cleaning Jobs from Your Local Housing Authority

The Little Book of BPO Companies: Contacts & Direct Links to Vendor Signup Forms; and

Marketing Guide Specifically for Foreclosure Cleaning Business Owners.

P.P.S.: Like this post? Follow Foreclosure Business News on Twitter.

Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.