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How to Get Foreclosure Cleaning Contracts

Do you run a cleaning business targeting realtors, mortgage lenders, and banks but you are not getting jobs? If YES, here are 7 guaranteed steps to get foreclosure cleaning contracts.

In many states in the US, foreclosure rates are rising and this has provided a very great business opportunity for smart entrepreneurs. After a foreclosure, the property has to be vacated by the former occupants and sold to new owners.

But before the realtor can bring potential buyers in to inspect the property and work their magic, the property has to be cleaned out properly, and sometimes, repairs have to be carried out in order to get the house in the best state possible. So banks hire the services of professional cleaners to carry out these services.

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You can earn up to 0 or more from cleaning foreclosure homes in the united states but there are a few technicalities involved- you need to learn how to get foreclosure cleaning contracts from banks. This article will show you all the steps you need to take in order to successfully get foreclosure cleaning contracts in the US.

7 Guaranteed Steps to Get Foreclosure Cleaning Contracts

Step 1: Get all The Necessary Documents

Banks and Mortgage financing companies are large corporate establishments that would usually prefer to do business with properly set-up companies.

Foreclosure cleaning contracts are highly competitive, so to get better chances of standing out from the competition and be hired, you will need to get your business registered and obtain all the necessary legal documentation. Basically, you’ll need documents like:

  • Federal Business License
  • Employee Identification Number (EIN)
  • State Business License
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You can also find out if there are any other state or city-specific documents that you will need to set up a cleaning business in your location.

Step 2: Get Insurance

Foreclosure cleaning is a very technical business and the banks and mortgage financing companies you’ll be working with will be more comfortable with contractors who have insurance protection against accidents and mishaps.

They want to be sure that if you or your employees accidentally damage something while at work, the insurance company will cover the costs of the damages. So talk to your insurance service provider about getting General Liability Insurance coverage for your cleaning business before you start bidding for contracts.

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Step 3: Get Marketing Materials

As mentioned earlier, banks and mortgage financing companies prefer to do business with fully established companies so it helps to brand your business properly so that even if you are a new business, it won’t seem too obvious that you’re a greenhorn and your business will look like a serious one.

You should get:

  • A website with adequate details about your company, work experience, and photos of jobs you’ve completed in the past. It also helps to add testimonials from companies or individuals that you’ve worked with in the past.
  • A company corporate profile document will serve as an offline version of your website for people who may not have the patience or time to visit your website.
  • A corporate logo with a catchy Business Name.
  • A good looking business card
  • A catchy business slogan.
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With all of these in place, you are ready to go out there to start hunting for contractors.

Step 4: Network with Realtors, Mortgage Lenders and Bankers in Your Area

It is usually easier to go through individuals than to establish a relationship with a corporate organization. When you network with realtors, bankers, and mortgage lenders around you, they’ll be able to recommend your services to the bank and mortgage financing companies, or inform you of the foreclosed properties that are currently scheduled for cleanup, so that you can draft a competitive business proposal.

You can decide to write a proposal and send it to the financial institution but it’s just faster when you have an inside contact who can give you information, or maybe even do some lobbying for you.

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You can even network with other contractors like electrical companies, facility managers, and other people who typically work on foreclosed properties. These people are also capable of recommending your services, and pointing you in the right direction.

Step 5: Write Your Proposal

Before you send a business proposal to the bank or mortgage lenders, you should visit the foreclosed property you’re planning to bid on to find out which services are required so that you can draft a detailed and relevant proposal.

Afterward, write a business proposal that explains the services that your company provides, tell them about your wonderful team and capabilities, tell them about some of the similar projects you have successfully completed in the past, and then provide an itemized list of all the services that you offer and the fees that you charge.

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Make sure you do your homework properly and find out what other cleaning outfits charge before setting your own prices. This will help you set competitive prices for your services

Step 6: Submit Your Proposal to Real Estate Agencies, Mortgage Companies, and Banks in Your Area

After writing your proposal, don’t just submit them to banks alone, you should submit them to banks, as well as other people that work closely with banks and can easily recommend your services to them.

Banks will of course prefer cleaning companies that come recommended than to go through the rigorous process of sifting through the dozens of proposals that they typically receive regularly. It helps to offer the real estate agents or the other contacts some kind of incentive that will encourage them to recommend your services.

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Step 7: Draft and Sign a Cleaning Contract

As soon as your bid goes through, the bank will have you sign a contract with details about the services that they expect you to carry out, the amount due on completion, and the payment plan. Make sure you also have your own contract documents ready for the bank to sign so that your business is well protected.

And don’t forget to do a good job too because that is what will get you bigger contracts, and more referrals in the future.