Many smaller foreclosure cleanup businesses obtain work from larger mortgage field service companies. The foreclosure cleanup and junk removal industry is on the rise, as evident in foreclosure industry reporting data from sources like RealtyTrac, an online marketplace for foreclosures. According to RealtyTrac, 3,825,637 foreclosure applications were reported on US properties in 2010. That’s a double-digit increase since 2008.
Foreclosure cleanup companies handle the ongoing cleaning, cleaning, and interior and exterior maintenance of homes that have been foreclosed on by banks and mortgage companies. The services offered by foreclosure cleanup companies can include a wide range of services, well beyond just cleaning. Services offered by these companies include cleaning, debris removal, painting, minor repairs, lawn maintenance, tarping and complete roof repairs, pressure washing, gutter cleaning, one-time and ongoing inspections, vehicle removal , tree felling, winterizing, lock shifting, window and door boarding, and more.
First Establish Your Foreclosure Cleanup Company
Many smaller foreclosure cleanup companies obtain work from property maintenance companies. While there are a plethora of property maintenance companies out there, it can be a time consuming process to register with all of these entities. The best way to start getting a job is to set up your business with the proper license, insurance, and equipment.
Your license: Often what is needed is a business occupational license from the County Clerk’s Office for your county. Each county is unique, so call the government office that handles business licenses in your county to find out what type of license you will need based on the services you choose to offer.
Business Insurance: Then contact a local insurance agency and discuss your business so you can better determine the type of coverage your business will need. At a minimum, you will need liability insurance coverage. Also plan to discuss how to get workers’ compensation insurance and the right coverage for your vehicle.
Preparation for the team: There are a few routes you can take when it comes to getting equipment for your business. You can a) buy equipment, b) rent equipment, or c) use the equipment you already have on hand in your garage or basement to start your business. Plan the equipment based on the services you plan to offer in your business.
NOTE: If you specialize in your services or offer one-stop services based on outsourcing or service referral, you’ll need a limited team to get started. However, if you choose to become a one stop shop and do everything yourself, you will need more equipment. Keep this in mind when planning your business and equipment needs.
Once you’ve properly researched the industry, planned your business and marketing strategies, obtained the proper license and insurance, and have your equipment needs in place, it’s time to start signing up for work.
The best way to start is to register your business with larger property maintenance companies. Below is a list of five great property maintenance companies. Contact them for your supplier packages and start registering your company to be part of their databases.
List of Top Five Property Maintenance Companies to Sign Up With
1. Mortgage Contracting Services, LLC: A national property inspection and preservation company founded in 1986. (Website: mcs360 DOT com)
2.Cyprexx Services: Cyprexx is a national field services company that provides property preservation, inspection, repair and maintenance services to some of the largest financial organizations, government institutions, asset management corporations and brokers in the US (Directorate of Internet: cyprexx DOT com)
3.Five brothers: This company has been in business for over 40 years providing services related to REO property preservation, inspection and management. (Website: Fivebrms DOT com)
4. Field Asset Services, Inc.: Field Asset Services is an REO property preservation and asset management services company responsible for more than $7.3 billion in residences on behalf of nearly 30 major clients across the country. They regularly take care of 120,000 more properties. (Website: Fieldassets DOT com)
5. Lenders Asset Management Corp. (“LAMCO”): LAMCO has been around since 1989 and provides residential REO asset management and outsourcing solutions to national credit institutions, banks, managers and investment firms. (Web: lendersreo DOT com)
Planning of asset preservation tests
When registering your foreclosure cleanup business with these large property preservation companies, be prepared to show proof of insurance, business registration, and quite possibly be prepared to take a property preservation questionnaire. Most of these quizzes are direct tests that simply test your understanding of basic industry terms and tasks. Much of the test information is readily available online, if you don’t already know it.
Foreclosure Cleanup Jobs for Years to Come
Remember, once you sign up with these companies and verify their credentials, these larger entities can provide your company with bulk foreclosure cleanup work for years to come.
Much success registering your REO garbage collection business with these companies for foreclosure cleanup jobs!
For a more extensive list of property maintenance companies and other key companies to sign up with for foreclosure cleanup and REO junk removal work (with direct vendor job links), check out the Hiring Directory and property maintenance and real estate industry outsourcing.
