The property preservation business can be a rewarding career that pays well if you take an appropriate path. Options include working for asset management companies or running a firm that contracts with HUD, lenders, realtors or investors. Here are details on how to become a property preservation vendor.
Serving the Demand for Property Preservation
You must first research your market to find out the demand level among real estate industry players for cleaning, transforming and maintaining properties in foreclosure. Lenders and investors outsource to experienced firms that specialize in fixing up properties for sale or rent.
Firms that outsource may already have in-house property preservation personnel. Industry guidelines are set by government agencies HUD, the Federal Housing Administration (FHA) and Veteran's Administration (VA). While investors may be interested in purchasing foreclosures for rentals, banks prefer selling rather than managing properties. Some lenders employ their own property preservation managers, while many outsource to experts for repair work involving floors, walls, roofs, kitchen, plumbing and a variety of other specialties.
The beauty of launching a business in the 21st century is that it's much easier and quicker to learn a vast amount of information about market opportunities, thanks to the internet and other digital resources. It's easy, for example, to gauge the demand for foreclosures for any city by accessing national and local data from a variety of real estate websites. Collect data on the number of foreclosures in your market vs. the number of foreclosures that are available to purchase. Then find out which companies lead the market to analyze the competitive landscape.
Establish Your Property Preservation Firm
In order to gain the attention of large banks that are eager to sell foreclosures but must first prepare them for sale, you must usually establish a company with a formal structure such as an LLC or corporation. You should at least have basic liability insurance and a license to conduct business in the geographic area where you do business. Here are additional steps you can take to expand your opportunities:
- seek certification by taking courses or programs with learning institutions
- inform yourself about government guidelines
- approach major banks and apply with the REO department
- develop a preservation contract
Then develop a website that showcases your skills and experience. The more you can provide search engines with evidence that you are a thought leader in your industry, the better chance your site will get high search rankings. One of the secrets on how to become a property preservation vendor with a successful website is to specialize in services that give you a competitive advantage. If you are new in the business, you should also use our specialized directory of property preservation companies to help you with visibility.
You don't need a formal education beyond a high school diploma to become a contractor that fixes and maintains properties. An effective strategy on how to become a property preservation vendor is to start with Property-Preservation.us. This resource will put you in touch with national property preservation companies that are actively hiring vendors. We can help guide you through the process and get your business off the ground.
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