You don't have to be much of a prognosticator to conclude that any business opportunity tied to foreclosures has nowhere to go but up. This is the time of the year that many people decide to launch a business, go on a diet, get their finances in order, etc.. We receive quite a lot of inquiries from individuals seeking advice on what kind of business they should start. Of course, I am a huge advocate of online businesses and have been teaching classes on this for nearly four years. I do keep my eyes open for other opportunities and today I want to share with you one that I believe is simply fantastic and especially timely.
There Are So Many Foreclosures, Banks Are Giving Away Homes!
Consider the fact that there are so many foreclosed homes that the banks are dealing with that they are even giving some of them away. Bank of America plans to donate more than 1,200 homes to charity just this year. Owners of more than 14 million homes are in foreclosure, are delinquent on their mortgages or owe more than their houses are worth, creating a shadow inventory that is holding down sales and prices, according to RealtyTrac.
On my own street in Palm Coast, Florida there are five vacant homes. I recently became curious about the individuals that keep the lawn cut and also clean these homes out once the foreclosed owner moves away. These are independent contractors, many times families working together, that seem to be busier than ever in the foreclosure cleaning business. A business that is booming and which seems to have no end in sight.
Banks Are Facing Community Pressure To Clean Up Foreclosed Homes
In the video below, you will see what some residents in Cincinnati decided to do when a local bank let garbage build up on a foreclosed property. Cities are also becoming very aggressive, fining banks thousands of dollars for not keeping foreclosed home sites clean. The City of Chicago is currenly embroiled in a lawsuit over fines it is levying against banks not maintaining these properties.
Most People Won't Get Their Old Job Back
I read an interesting statistic the other day that indicated that 50% of individuals who found employment after being unemployed for more than a year secured jobs in a new occupation. This was really a confirmation of what I have been saying for some time. Your old job may not be coming back and you may have no choice but to reinvent yourself and carve out a new opportunity. Foreclosure cleaning may not be glamorous but the opportunities are plentiful and pay very well. I have read that banks will pay between $300 to $500 per day for basic cleaning and lawn maintenance on a foreclosed home. There is no rule that this has to be a full time gig. This can even be something you pursue at night or even on the weekends.
What Is Involved With Cleaning Foreclosures?
For the most part, you will be doing one of three things. First, your biggest project will simply be hauling away junk items left behind. This will require a large truck. If you don't own a pick up you can always rent a truck for the days you are working. At least half of your efforts will be loading up your truck with trash and taking it to the garbage dump. An alternative is to contact a local waste management firm to have a large garbage dumpster delivered to the site and then picked up after you fill it. This approach will alleviate the need for a truck altogether.
After cleaning out all of the trash, the house will need a thorough cleaning. Yes, sweeping, mopping, running a vacuum cleaner, all the normal cleaning activities. Expect to do some heavy duty cleaning, however, as those leaving behind a foreclosed home typically do so with no regards as to the condition they leave it in. Lastly, the lawn will need to be mowed and possibly the hedges may need to be trimmed. No brain surgery here.
Licensing & Insurance
Other than a local business license, most states do not require any type of professional license to engage in the business of cleaning foreclosures. Most banks will require that you carry a basic liability policy and if you hire individuals to work for you, worker's compensation and other requirements may kick in. If you keep this simple and make it a one or two person family business, you should be able to keep your start up costs very low.
How Do I Get Started?
I have been looking for a guidebook or training program on how to do this and all of the ins and outs and was unable to up until about six weeks ago. ChristianMoney.com purchased an online course for $97 and we found it to be very informative and complete. There are a few books at Amazon that cost less but they don't appear to be as comprehensive. It would seem to make much more sense to purchase some educational materials rather than learning through trial and error.
If this is not for you, please forward to someone you know that needs this. I am very surprised that so few people know about this opportunity, but it appears to be something that will only be growing for years to come.
Helping you make the most of God’s money!