There are some definite costs to starting a foreclosure cleanup business. It’s not one you can start with no money, and don’t believe anyone who tells you otherwise. But, the costs can be mitigated. The following are some concrete suggestions on how to start a foreclosure cleanup business “on the cheap.”
3 Concrete Tips on How to Clean Up Foreclosures Cheaply
Rental equipment: While it’s ideal to have your own equipment when you own a foreclosure cleanup business, you can rent just about anything you need until you can pay it off in full.
For example, a trailer and a dumpster. Most jobs will require them, as you will need to clean and remove trash and debris from a property. But this equipment can be rented very reasonably.
Team Tip: Familiarize yourself with costs before you start trading
To start getting an idea of the costs of things you’ll frequently rent (for example, ladders, lawn equipment (in warm seasons), tools, etc.), visit your local Home Depot or Lowe’s. Since these are built-in costs for your business, you need to have an idea of how much it will cost to rent these things for your foreclosure cleanup business until you can afford them.
Subcontract: Another way to start a foreclosure cleanup business on the cheap is to outsource as much as you can. Cleaning, you can handle yourself. But, if there are jobs you’re not equipped to do because you don’t know how to do it or don’t have the right tools, outsource, for example, painting, plumbing, electrical, window repair, etc.
Simply include the cost of hiring contractors in your estimate.
Online Market: One of the biggest costs most new businesses face is marketing. Fortunately, a foreclosure cleanup business is one where marketing can be done cheaply. Why? Because your core customer base (eg, realtors, bankers, and investors) are all online.
And they are easy to find. So use email marketing. It’s free. Add a couple of vehicle signs to this (every foreclosure cleanup business should have vehicle signs) and that’s all the marketing you’ll need to do to get the business flowing initially.
While there are legitimate startup costs that you can’t get around when starting a foreclosure cleanup business (eg, insurance, vehicles, phone), everything else can be done “on the cheap” until you start generating business.
Learn more about what you need to know to start a successful foreclosure cleanup business.
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