Many smaller foreclosure clean up businesses get work from larger mortgage field services companies. The trash-out and foreclosure clean up industry is on the rise, as is evident in foreclosure industry reporting data from sources like RealtyTrac, an online marketplace for foreclosures. According to RealtyTrac, 3,825,637 foreclosure filings were reported in 2010 on U.S. properties. That’s a double digit increase from the year 2008.
Foreclosure clean up companies handle the clearing out, cleaning up and ongoing interior and exterior maintenance of homes that have been foreclosed upon by banks and mortgage companies. Services offered by foreclosure clean up companies can include a wide spectrum of services, well beyond cleaning. Services offered by these businesses include cleaning, debris removal, painting, minor repairs, lawn maintenance, applying tarps to roofs and full roof repairs, pressure washing, gutter cleaning, one-time and ongoing inspections, vehicle removal, tree cutting, winterization, lock changing, window and door boarding, and more.
Establish Your Foreclosure Cleaning Enterprise First
Many smaller foreclosure clean up companies get work from property preservation companies. While there are a plethora of property preservation companies in existence, it can be a time-consuming process signing up with all of these entities. The best way to start getting work is to establish your business with the proper license, insurance, and equipment.
Your License: Often a business occupational license from your county’s County Clerk Office is what is needed. Each county is unique, so call your government office that handles business licensing in your county to find out what type of license you will need based on the services you choose to offer.
The Business Insurance: Next, contact a local insurance agency and discuss your business so you can best determine the type of coverage your company will need. At minimum, you will need liability insurance coverage. Also plan to discuss securing workmen’s compensation insurance and the appropriate coverage for your vehicle.
Preparing for Equipment: There are a few routes you can take when it comes to getting equipment for your business. You can either a) purchase equipment, b) rent equipment, or c) use the equipment you already have on hand in your garage or basement to start your business. Plan equipment based on the services you plan to offer in your business.
NOTE: If you niche your services, or offer one-stop shop services based on subcontracting or referring out services, you will need limited equipment to start. However, if you choose to become a one-stop shop and do everything yourself, you will need more equipment. Keep this in mind as you plan your business and equipment needs.
After you have properly researched the industry, planned your business and marketing strategies, secured proper license and insurance, and have your equipment needs in order, it will be time to start signing up for work.
The best way to start is to register your business with larger property preservation companies. Below is a list of five large property preservation companies. Contact them for their vendor packets and start signing up your company so you’re part of their databases.
List of Five Top Property Preservation Companies with Which to Register
1. Mortgage Contracting Services, LLC: A national property preservation and inspection company founded in 1986. (Website: mcs360 DOT com)
2. Cyprexx Services: Cyprexx is a national field services business 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 U.S. (Internet Address: cyprexx DOT com)
3. Five Brothers: This company has been in business for more than 40 years providing property preservation, inspection, and REO management-related services. (Website: fivebrms DOT com)
4. Field Asset Services, Inc.: Field Asset Services is an REO asset management servicing and property preservation company responsible for more than 7.3 billion dollars in residences on behalf of almost 30 major nationwide clients. They regularly care for 120,000 plus properties. (Site: fieldassets DOT com)
5. Lenders Asset Management Corp. (“LAMCO”): LAMCO has been in existence since 1989 providing residential REO asset management and outsourcing solutions for national lending institutions, banks, servicers, and investment firms. (Web: lendersreo DOT com)
Planning for Property Preservation Tests
When you register your foreclosure clean up 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 quiz. Most of these quizzes are straight-forward tests that simply judge your comprehension of basic industry terms and tasks. Much of the test information is quickly available online — if you don’t already know it.
Foreclosure Clean Up Jobs for Years to Come
Remember, once you get registered with these companies and your credentials check out, these larger entities can provide your company with bulk foreclosure cleaning work for years to come.
Much success registering your REO trash-out business with these companies for foreclosure clean up jobs!
For a larger list of property preservation companies and other key businesses with which to register for foreclosure cleaning and REO trash-out work (with direct vendor job links), see the Property Preservation & Real Estate Industry Contracting and Subcontracting Directory.