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5 important 'Must Haves' to start a foreclosure cleanup business

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By : Justin Okeefe    99 or more times read
Being one of the best businesses to start up at the current economic situation, many people are thinking about cashing in on the opportunity. However do you know what it takes to run the company? Here are the five basic things you need to be aware of before starting one:

1. Get a license, get a bond and get insurance
All banks and real estate investing companies will always expect you to have a license and have your own insurance if you run a foreclosure cleanup company. If you donít have the above documents, you wonít receive any jobs from them. Since they control the bulk of properties being foreclosed, it would be wise to make sure that they accept you as a qualified service provider.

Most cleanup businesses only require an insurance of $1 million in liability policy and a compensation for workmen. If you are unsure, simply consult your insurance agent for advice.

2. Consult numerous contractors
Being in the business of cleaning up foreclosed properties, you will most definitely need services from many contractors such as electricians, plumbers, painters and so on. Before you begin, make a list of a few contractors for each service you require. Even if you are skilled and have experience in those areas of work, you may still need to think about outsourcing work.

Again, make sure the other contractors you outsource to have a license as well. If you hire a plumber, the bank may ask for that plumberís certification to make sure that all plumbing work was done correctly.

3. Be prepared for anything
Foreclosed homes may have all sorts of surprises. Sometimes the tenants have not left yet or you may be greeted by an angry dog who rushes at you upon entering the premises.

So be prepared to face anything in a foreclosed home. Never enter the premises alone for the first time. Always knock on the doors and be sure to rattle the fences to check if anybody or an animal is present.

4. Work quickly
Banks and real estate companies would expect the job to be done quickly. They usually want you to start as soon as you can after giving you the task. So remember this fact when you prepare your estimation for completion.

Think also about the contractors you want to outsource to and make sure they are available for the job at any time. If their schedule is congested, be sure to have a backup plan in case of an emergency.

Try working with the same subcontractors all the time. This way you will be assured that their services are indeed up to standard and they will be available for the next job. The more jobs you outsource to them, the higher is your priority the next time their schedule becomes packed.

5. Get a great receptionist
Receptionists are very important in this line of business. Banks and real estate companies usually search the phone book or surf the internet for cleanup companies. If no one picks up the phone after a few rings, they wonít leave a message and simply hop on to the next company on the list.

So make sure you hire a reliable receptionist to handle the phone calls and bring in the business.
Find Bank Owned Foreclosures at You can also visit our Mortgage Calculator or our Widgets Page.

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