How to Make Money Cleaning up Foreclosed Homes

Entrepreneur life

Successful entrepreneurs are seldom left wanting for opportunities to make serious money. While property is and always will be one of the primary cash-cows for savvy businessmen, there are other ways to profit aside from sales and lettings.

This is where foreclosures come in, or to be more specific, bringing foreclosed homes up to scratch for buyers. As these type of properties are typically sold in “as is” conditions, they will not have adequate repairs or be brought up to spec for the buyer. A Queens foreclosure may look like a dream property according to its location and exterior, but the inside of the home may be more of a nightmare.

In 2017, there were close to 700,000 foreclosure filings. While this is not quite at the rate it was at the turn of the decade, it still represents a worthy business endeavor for any willing entrepreneur.

A Low Cost & High Margin Opportunity–Banks or U.S. Department of Housing of Urban Development (HUD) are typically mortgage holders of foreclosed homes. While they are not responsible for bringing the properties up to good repair, they do hire contract cleaners to ensure the home is clean and reasonably presented. This is who you will approach or hope to have approach you, for your services.

Your job will be to remove any unwanted items and freshen the place up a little, which does not make for costly overheads or massive expenses. In fact, you can even rent out equipment to complete the job until you build up your reputation

Ensure You Can Get Business in Your Area – There is little point in starting a foreclosure cleaning company if there is no business in your area. You can do some market research to determine if the opportunity to make money in your new venture is worth the time of setting up your business. Look through the foreclosure listings in your area, and how many other entrepreneurs have already established their businesses.

You can contact banks and institutions in your locality to present your services, or approach your local HUD office to see if they require cleaners for their foreclosed homes.

You Don’t Have to Limit Your Services–If you have the resources to set up a home cleaning company, you may include foreclosure clean-ups as part of your overall services. For example, if you target rental properties to begin with, you may earn contracts as a foreclosed property cleaner by establishing your business beforehand. Having a reputation built on the back of excellent reviews may see you refusing work in the end.

As far as a business opportunity goes, cleaning foreclosed homes is an excellent way to make money. If you can convince mortgage holders that your service is the only one worth using, there is a chance that you can establish yourself in a comfortable position. Even if you do start off cleaning foreclosed homes, with enough capital, you can eventually expand to rental properties and offices.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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