Foreclosure & REO Property Cleanout
Clean out foreclosed and bank-owned properties for lenders and investors
Overview
Foreclosure cleanout services charge $500-$5,000 per property depending on size and condition.
Completing 15-50 properties monthly generates $100,000-$450,000 annually with 45-60% margins after disposal, labor, and vehicle costs.
In 2025, banks, lenders, and real estate investors need reliable contractors to clean abandoned foreclosed properties quickly.
Services include removing all abandoned belongings and trash, securing properties (changing locks, boarding windows), hauling away appliances and furniture, documenting before/after with photos, coordinating utility shutoffs, clearing yards and debris, and completing work on tight deadlines (24-72 hours typical).
Successful businesses develop relationships with asset managers at banks, REO agents, and investment property companies, provide fast reliable service with documentation, submit competitive bids through property preservation platforms, and operate multiple crews.
Volume-based business with lower revenue per job but consistent flow.
Pricing either flat-rate per property size or itemized.
Key is speed, reliability, documentation, and maintaining relationships with property management companies contracting work.
Required Skills
- Property Preservation
- Documentation
- Fast Turnaround
- Team Management
- Bidding Process
- Basic Repairs
Pros and Cons
Pros
- Consistent volume from banks and investors
- Recurring work from property management contracts
- Fast job turnaround (1-2 days typical)
- Can grow to multi-crew operation
- Additional services (winterization, lawn care) add revenue
Cons
- Lower margins than residential junk removal
- Dealing with sometimes dangerous abandoned properties
- Net 30-60 day payment terms from banks
- Need general liability and completion bonds
- Volume dependent on foreclosure market activity
How to Get Started
- Get proper licensing, insurance, and surety bonds
- Register with property preservation networks and platforms
- Build relationships with REO agents and asset managers
- Develop fast reliable crews and processes
- Create detailed documentation system (before/after photos)
- Submit competitive bids for cleanout contracts
- Expand services (winterization, lawn care, light repairs)
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