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When a bank or lender forecloses on a home, some homeowners elect to cause severe damage to the foreclosed property or leave behind considerable amounts of trash and junk. Even when a foreclosure goes relatively smooth, the home must be thoroughly cleaned out before it can be placed back on the market. A motivated entrepreneur could do well to start a business cleaning trash out of foreclosed repos. |
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Step 1 Determine what services you will offer. In addition to trash hauling and general cleanup, you may offer landscaping, basic construction or repairs. Doing so means that lenders can count on you to take care of all aspects of the renovation, versus having to hire separate contractors. This will give you a significant advantage over any competitors. You'll need to obtain certifications in each area or hire certified and skilled employees to handle different jobs. Keep in mind that you may be required to pull carpet, haul trash, paint walls, clean ovens, replace ventilation systems, wash high windows, conduct electrical or plumbing work, clean chimneys, clean kitchen hoods, replace roofs and do yard work. At a minimum, obtain a cleaning certification or hood cleaning certification. Step 2 Have a roofer, plumber and electrician on hand that you can contract work out to, if the job requires it. Ensure that their certifications and insurance are up-to-date. Step 3 Apply for a business permit for your foreclosure cleanup business. Obtain a contractor's license to clean out foreclosures, if required by your state. Step 4 Purchase liability insurance for your business and bonding coverage and worker's compensation for employees. Liability insurance protects you and your employees in the event that you cause damage to the foreclosed home. Bonding coverage protects against employee theft. Step 5 Purchase hauling equipment for trash removal such as a truck, trailer, tarp and dolly. Purchase a commercial lawnmower, pruning shears, cleaning chemicals, vacuum cleaners, mops, brooms, power tools, safety equipment, dumpsters, basic tools and ladders. Step 6 Create a system for setting your rates based on the services you provide or charge an hourly rate. Design checklists that you will take when conducting the walk-through to detail all aspects of the job. Step 7 Create brochures detailing the numerous services you provide, the amount of experience and certifications you and your employees hold and the fact that you are licensed and insured. Contact banks, lenders, property managers and real estate companies to sell your services. Be persistent. Each month send a follow-up email or flier. If possible, speak with potential clients over the phone or in person. Step 8 Learn how the bidding process works in your area. Don't commit to a project unless you know you have enough manpower and supplies to get the job done on time. Step 9 Contact landfills and recycling centers about dropping off your trash and any limitations. |
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