Foreclosure Homes for Sale: $2 Billion Allocated by Gov’t to Buy Spells Opportunity for Foreclosure Cleaning Companies
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. The article states:
Around 56 percent of the grants approved last year will be used to buy and rehabilitate properties that have been abandoned or foreclosed, according to the report from Enterprise Community Parnters.
Foreclosed Homes for Sale: 3 Reasons It Presents Opportunity for Foreclosure Cleaning and Other Real-Estate Related Business Owners
Gov't Buying Foreclosed Homes a Good Thing for Many RE-Related Businesses
This spells opportunity for a host of real-estate related small businesses, eg, foreclosure cleaning companies, realtors who specialize in REO/distressed properties, junk haulers and more. How? In the following ways:
1. Government Allocations: Once the government allocates funds, they must be spent. When have you ever met a public official who didn’t know how to spend money? Hence, millions will be spent on getting foreclosure homes for sale ready for market, demolishing them, etc. This brings us to the next point, ie, who will do the work?
2. Subcontractors and Subcontractors Needed for Foreclosure Homes for Sale: When the government has work to be done, they use contractors, who often use subcontractors. And, you have to be licensed. If you’re a mom and pop shop with no official documentation, eg, insurance, official business license, etc., then you won’t be able to vie for these contracts. You must “get official” first.
If you provide foreclosure cleaning services, real estate cleanup services, demolition services, lawn and property managment/preservation services, etc., now is the time to make sure your paperwork is in order so you can bid on these upcoming contracts, which brings us to our last point.
3. HUD Contracts for Cleaning Foreclosed Properties: The government not only allocates contracts to properly licensed and insured vendors, they do so on a bid basis. Now is the time to scour your local county commissioner’s office to bone up on what they will be looking for from vendors, how the bidding process is going to work, etc.
Government Buying Foreclosed Homes for Sale: Good Idea, or Not?
The government buying foreclosed homes for sale is a good thing, especially if you’re a qualified vendor who can capitalize on it. Also, it helps get the real estate market back on track, stops crime that tends to happen when homes sit empty for too long and strengthens property values for the community at large.
Get all the info you need to start your foreclosure cleaning business today, so you can capitalize on this unique opportunity — and be a part of the revitalization of your community.