The foreclosure cleanup industry is proving to be a lucrative business option for hardworking entrepreneurs. With one in every 25 homes in foreclosure, per Michael Williams, Fannie Mae CEO, and with millions of adjustable-rate mortgages poised to reset in the coming years (creating the prospect of a new round of foreclosures)
Though foreclosure cleaning is a burgeoning industry, due to the sheer number of foreclosure cleanup jobs available, foreclosure cleanup can be a business with thin profit margins if entrepreneurs aren't pricing their services for profit.
Pricing for profit can be tricky for new foreclosure cleanup business owner who don't know the ins and outs of how contracts are won, who gets paid first, where they are on the totem pole in getting paid, etc.
A good tool to use in pricing foreclosure cleanup jobs is HUD's pricing guidelines for property preservation type companies -- BUT, to use this tool alone is a grave mistake, says Cassandra Black, owner of Foreclosure Cleanup, LLC in Atlanta.
"When using HUD's guidelines to price foreclosure cleanup jobs, foreclosure cleanup business owners should be aware of that the tables list the maximum amount HUD will generally pay the PRIMARY foreclosure cleanup contractor of a foreclosure cleaning job," says Ms. Black.
As a smaller foreclosure cleanup company (http://inkwebdesign.hypermart.net/
Foreclosure cleanup business owners cannot simply look at the HUD pricing charts and use those figures for bidding, or they'll certainly overbid a job and lose out. The tables have to be dissected effectively.
Remember, the HUD pricing guidelines for foreclosure cleanup are what HUD will pay, maximum, for a service (though certain scenarios will permit them to go higher with substantiating information)
Anybody can price, but pricing "for profit" in the burgeoning foreclosure cleanup industry is an art. New foreclosure cleanup businesses should plan to do their research so they can learn how to dissect the HUD charts and price effectively for profit to win more foreclosure cleanup business.
by Cassandra Black, CEO, Foreclosure Cleanup, LLC and Author of How to Start a Foreclosure Cleanup Business (http://inkwebdesign.hypermart.net/
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Foreclosure Cleanup, LLC specializes in clearing out & cleaning up homes that have been foreclosed upon in the Atlanta area. They are authoring company of "How to Start a Foreclosure Cleanup Business" e-Book. Website: www.ForeclosureCleaningBusiness.com (http://inkwebdesign.hypermart.net/