Foreclosure Clean Up – How Much Can You Make Per Week in This Business?

As of this writing (September 2009), we are two years into the foreclosure crisis. And, now that banks and other lenders have finally adjusted to being in the property preservation and foreclosure cleanup business, the work is starting to flow into companies that handle these types of projects — in bulk. Proof?

According to the August 9, 2009 MSNBC article, Foreclosures bring out cleanup crews, the property preservation company owner profiled says that he “. . . inspects roughly 90 structures, secures 20 others, and trashes out between 10 and 20 “REOs” (bank shorthand for “real estate owned”).”

Types of Jobs Property Preservation and Foreclosure Clean Up Companies Handle

In the article mentioned above, the types of jobs the business owner handles cover quite a range, ie, every thing from mowing waist-high lawns to shooing away squatters to boarding up windows to replacing locks, to trashing out and hauling away waste and debris?

Why 4 to 5 Figures a Week is Possible In This Business — Easily

Because the types of jobs that foreclosure cleaning companies handle cover a wide range, it’s possible to make four to five figures a week easily. On the low end, a general trashout of a home runs $ 200-$ 500.

This is for a simple job — ie, hauling way leftover furniture, garbage and other debris. Usually, a job like this only requires two people and can be handled in a few hours. Remember, this is just for the trashout.

When you add in other services, eg, minor repairs, painting, lawn maintenance, boarding up windows, changing locks, etc., it’s easy to see why it can add up.

HUD Pricing Guidelines for Foreclosure Cleanup: Why They Are Important to Your Bottom Line

Once you know what HUD will pay for a particular service, you can better set your foreclosure cleaning prices. HUD is a huge organization. They hire what’s known as M & M (management and marketing) companies to ensure that their properties are taken care of to certain specifications and within budget.

But you must know where you fall on the “payment totem pole” in order to price jobs right. If you get work from a middle man, you may be making less than if you got work directly from the M&M company. Either way, it can be lucrative.

The point we’re trying to get across is that your profit margin will almost certainly be affected by HUD’s guidelines — wherever you fall on the chain of foreclosure cleaning service providers.

How Much Money Do Foreclosure Cleaning Companies Make on a Typical Job?

According to the business owner featured in the article mentioned above, he grosses between $ 250 and $ 2,000 on a typical trahshout. And, he states that he does 10 to 20 of these a week. A cursory run of the numbers means that he grosses between $ 2,500 and $ 40,000 (yes, $ 40,000!) — a week. Remember, this is just on trashouts.

He provides other services as well. And this is what makes foreclosure cleaning so lucrative.