This is exactly what you need to start a foreclosure cleanup business
When it comes to the best business to start in 2010, foreclosure cleanup has to be among the top business opportunities, for several reasons. The main one is that the foreclosure crisis is not over. Proof?
Even though the housing industry is starting to recover very slowly, there are still millions of foreclosed properties that have yet to come to market.
According to leading financial industry experts such as Standard & Poors and Moody’s, as of February 2010, there are an estimated 7.7 million homeowners who are in default on their mortgages. However, these are not being reported by banks as bank-owned properties (REOs).
Many lenders don’t foreclose on purpose because they don’t want to flood the market with more inventory because it will drive home prices down again. In short, foreclosure cleanup companies will have their work cut out for them, for years to come.
Now that you know why starting a foreclosure cleanup business will be a hot opportunity for years to come, here’s what you need to get started.
1. A business license: This is not a business where you can “fly” without a license. To be taken seriously and be eligible for things like HUD foreclosure cleanup contracts and foreclosure subcontracting opportunities with your local housing authority, you must be licensed as an official business.
Note: Beginning in March 2010, many housing authorities across the country began receiving government stimulus money. This means that local jurisdictions will have money to fund many projects that are ideal for foreclosure cleanup companies and other real estate service companies such as: appraisers, termite and pest control companies, building contractors, plumbers, electricians, roofing, lawn care companies, etc. .
However, you must be a licensed business in order to engage in any type of foreclosure cleanup work with these government agencies.
2. Insurance: Banks, lenders, real estate agents, etc. simply won’t want to deal with your business unless it is properly insured. In fact, says the owner of a foreclosure cleanup business in Atlanta, “it’s often one of the first things you’re asked for when contacted for work.”
You also need it to protect you, your workers and your property as your foreclosure cleanup business grows.
What Kind of Insurance Does Your Foreclosure Cleanup Business Need?
The answer is, it depends. At a minimum, you will need liability coverage and auto insurance for your vehicle(s). If you hire employees, you’ll also need workers’ compensation. Each area of the country is different and each county has different requirements.
Call the local insurance agencies that serve your area and tell them about the type of business you’re starting. They will be able to guide you in making a decision about the type of insurance you need.
As far as what you need to start a foreclosure cleanup business, license and insurance, it’s as far as “going into business.” Now, you are ready to market to “attract business”.
