how to start a foreclosure cleanout business

Start a cleanout foreclosure business

Foreclosure cleanouts is a highly profitable business. Cleaning REO properties will generate highly recurring streams of income. There are loan servicing companies, reo real estate listing agents, banks credit unions, asset companies, hud, fanny mae that will need your services of a property preservation company cleaning out foreclosed properties.

Starting a foreclosure clean out business can be done for almost no money. All you will need is the operation cost for one month. Most companies, REO listing agents, asset companies, and national preservation companies pay within one month or sooner to complete the trash out on the REO bank owned property.

When I started my foreclosure clean-out business. I started with no trucks, no equipment, and no crews nothing. I had two childhood friends that helped me start my foreclosure clean-out business. One of my friends had a stalk truck. Either he would haul away the debris from the bank owned properties and preferred pricing. Or if he was busy working and the truck was available I would rent the truck from him. If his truck was not available I would rent a truck or hire another haul away junk service to do my jobs. Either way, I had to get resourceful and get the job done.

Financing – Foreclosure Clean out Business

I have heard of several of my competitors in the foreclosure business that borrowed money from banks or had lines of credits. It is not necessary. I did not want to borrow money from anyone to clean out foreclosures. I used my creativity. I just hustled to start my foreclosure cleaning jobs. I basically started my foreclosure cleaning service for nothing buy my labor and all of the cleaning foreclosure profits was all mine.
Mission Statement – Foreclosure Cleaning Service

The Mission of the Foreclosure Clean out Company is to become the recognized leader in its target market of cleaning REO Bank owned properties.

Management Team – Foreclosure Home Cleaning Business

The Foreclosure Cleaning was founded by John Smith. Mr. Smith has 25 years of servicing REO foreclosure clean out jobs for various clients including Bank of America, Wells Fargo, Citibank, and the federal government, FHA, Fannie Mae, and HUD. He has extensive experience in areas of Bank owned properties management and service.
Sales Forecast – Foreclosure Cleaning Services
Mr. John Smith expects a strong rate of growth at the start of operations. Mr. Smith expects a return of three hundred percent within three years of starting.

Expansion Plan – Foreclosure Clean Outs

The founder John Smith anticipates the company will aggressively expand throughout the initial 3 decades of operation. Mr. Smith plans to execute marketing campaigns which will effectively target people and companies within the market.

Registered Name and Corporate Structure – Cleaning Foreclosures

The foreclosure cleans out service can be as easy as DBA doing business as or if you have the funds to start an LLC.

Required Funds – Foreclosure Clean out DBA or LLC

Initial lease payments dump truck and deposit $15,000.00
Working Capital – labor, dump fees, and fuel $35,000.00
Furniture, Fixtures and Equipment $25,000.00
Yard and office lease $7,500.00
Security Deposits $12,500.00
General Liability insurance, $3,000.00
Dump Truck Vehicle insurance $2,000.00
Marketing Budget – Start Junk Hauling Business $15,000.00
Miscellaneous and unforeseen costs $5,000.00

Investor Equity – Foreclosure clean out business
Mr. John Smith is not seeking an investment from an investor at this time.
Management Equity – REO Bank Owned Properties Cleaning Service
Mr. John Smith owns 100% of the Foreclosure Clean out company LLC

Exit Strategy – Foreclosure Property Cleanout

In the event the company is quite effective, Mr. John Smith may try to market the company to another party for a substantial earnings multiple.

How to Start a Successful Foreclosure Cleanout Business

According to historic amounts, the company could bring a revenue premium of around 6 times earnings. But, with current gas prices rising, the premiums for waste management companies have diminished as a result of the volatility of the petroleum markets. It must be noted that Mr. Wassef plans to run that business for a substantial time period, and a possible exit strategy wouldn’t be implemented for five to seven decades.

Big Profits Foreclosure Clean Out Business

The more you are able to provide on your company the much better chances you are going to have, meaning more money in your pocket. Again you want to become professional about your cleaning business. Starting a cleaning business can be a very rewarding venture but there are a couple of essential considerations that can make a difference on your capability to do so efficiently. If you are like me, you want to continuously improve your cleaning service business.

How to Start A REO Property Preservation Business

The very best thing about my job is the chances that we will need to help meet the business dreams of our clients and make tasks within our area. Last, be sure you’re marketing and on the watch for new tasks on a continuous basis. If you are going to do commercial tasks, you can’t simply do this without having the right licensing set up.

How to Start a Profitable Foreclosure Cleaning Business

Why a business operator would not have to get educated about what is going on in their business, I’m still unsure. Many small business owners look too ambitious, but frankly, they just adore the things they perform. Every house cleaning company operator must know more about the company he or she conducts, but every company owner should also have the abilities to help the business operate efficiently.