With the unemployment rate just reported at 8.2% for May of 2012, many Americans are looking for additional income sources. Some people are still employed, but have had their hours cut back, and need to supplement their lost income. Then there are people who have very unstable employment, with the constant threat of layoffs, who would like to begin an alternate source of income now and be ready when the layoff actually arrives.
If you have one of the previous unemployment fears, cleaning out foreclosures is a good option for you, because of the sheer number of foreclosures that require cleaning.
The first thing you will need to do when you choose to set up a foreclosure cleaning business, is to set up your legal entity. This is not a difficult process, and is extremely important, because you will need this information to register with the companies that will be providing you with the foreclosed properties that your company will service. This will include deciding on a name for your business and then choosing the structure you will use to set it up. Checking with your local Secretary Of State office is a good way to obtain more information on this topic.
After setting up your business entity, you’ll also want to make sure you have a dedicated bank checking account for your business activity. This will also allow you to deposit checks received from your customers, for you to purchase any needed supplies for your day to day services and to pay for any other business related expenses in your foreclosure clean up business.
Next, Locate and register with the national companies that will provide the properties to be cleaned and serviced in your local area. Creating a well thought out Business and Marketing Plan can help you reach your goals more quickly. These can be revised as you go, but in the beginning it is more important to get started, rather than trying to make sure it’s perfect. Don’t fall into the procrastination trap thinking it must be perfect the first time . Just get started and allow it to grow and mature, just as your cleaning out foreclosures business will grow and mature.
Some additional ways to grow your business once you get going is to analyze your Internet presence, it’s a good idea to claim all your free local online listings that are offered by the larger search engines, like Google, Yahoo and Bing. There are also a multitude of directories you can put a free listing in, so your business can have a stronger presence.
There are a lot of Real Estate meetings and networking groups you can attend, that can add supplemental profits to your business and to gain exposure for your new foreclosure cleaning business. You’ll want to make sure that the networks you are participating with include the special real estate agents and companies who focus on servicing foreclosed properties. Networking is all about building relationships, so invest some time in this marketing strategy, because a good relationship could mean more foreclosed properties to clean and maintain.
Research and stay on top of the latest industry developments that may affect your foreclosure and REO trash out business, always looking for the newest industry information. This can be done in various ways, with the Internet providing a plethora of information, along with the latest news about programs you can participate in cleaning out foreclosures and REO inventory. A mentor will often be worth their weight in gold, cutting out a large amount of the learning curve, allowing the new business owner to succeed at a much faster rate than if they try to break into the business with no help.
When you are approved by the companies who send out properties to foreclosure cleanout businesses, complete them correctly with high quality service and by the deadline. This will assure you a high likelihood to receive more properties from the same contact, which when you get a few good foreclosure and REO inventory providers, you will have a very lucrative, recurring income.
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