How to Earn $100K+ Repairing Foreclosed Properties
Have you ever thought about getting into Real Estate?
Real Estate will ALWAYS be a smart investment because people will ALWAYS need a place to live.
But I’m going to put a different spin on the ancient old Real Estate model that I’m pretty sure you have never considered. Today, I’m going to show you how to become a property preservation contractor.
I was at a conference in D.C. where I met Danielle Pierce. We were talking about what we do and she told me she was into Real Estate but doesn’t buy or sell anything.
This really intrigued me and I had to know more. As she began to explain, I stopped her and asked if I could interview her for my site. I HAD to share her story with my readers so they could consider this as a new way to make money from home and for me too!
She smiled and said yes, I also asked if she had a course because I know everything she was telling me was not going to stick. I would need step-by-step instructions on how this all works and thankfully she also said, yes!
Below you will see my conversation with Danielle as she explains how this works. What makes this job so incredible is that Danielle is a mom of 3, homeschools them, and still has time to run this business earning six-figures. So this tells me that anyone that wants to do this, Can!
If you find this is not the job for you, make sure to check out our most popular article on 30+ ways to make money from home.
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Here is How You Can Make Money with Bank Owned Homes
1. Can you tell us a little bit about yourself and how you got started repairing bank-owned homes for profit?
Sure. Like a lot of people, my initial strategy for a successful life was to go to college, get good grades and get a good-paying job. I had every intention of climbing the corporate ladder and breaking glass ceilings. I have a Master’s in Accountancy from the University of Illinois at Urbana-Champaign. So…the only problem with this strategy is that accounting was awful and I hated every second of it. I tried audit and taxation and hated everything about that as well.
In 2007, my company at the time Equity Office Properties Trust was doing massive layoffs. I prayed for a lay-off and my wish was granted! Good news is that I got what I wanted. Bad news is that I was NOWHERE near ready!
I struggled for the first few years as I had no clue about entrepreneurship. It took me 5.5 years to replace my corporate salary and just over 6 to finally hit six figures.
I had always been interested in real estate and I was fortunate enough to find a mentor early on to help guide my career. While I do hold a managing broker’s license, I don’t generally work with buyers and sellers.
I have always preferred to generate income that I could control and that required limited day to day customer interaction. As such, working with foreclosed properties was a perfect fit.
2. Can You Explain What the Proceess Is and How It All Works?
Yes. If you look around just about any neighborhood, you’ll notice abandoned houses that are in need of upkeep and maintenance in order to sell. Many of the houses are foreclosed or somewhere in the foreclosure process. Banks don’t like to manage real estate so they outsource these services to preservation vendors such as my company. As a preservation vendor, you’re responsible for the repair and maintenance of any property included in your service area.
3. What Type Of Work Is Involved?
Preservation work generally includes the following: landscaping, board-ups, debris removal, evictions and securing. It generally does not include major renovation and/or remodeling work.
4. Can This Be Done While Still Working a Full-Time Job?
Generally, the most successful students are operating their business full time. However, it’s possible to work your 9 to 5 AND operate this business if your job has a certain level of flexibility built-in. You should be able to send and/or respond to a quick text message or email. If your job does not allow you to be on the phone at all, you should not start until you have a more flexible position OR a suitable partner.
5. How Much Do Property Preservation Contractors Make?
New vendors generally average about $3k-$5k per month for the first 3 to 6 months. From there, it’s up to the vendor to decide if they want to scale the business or continue to cover a smaller territory. It’s very feasible to gross $100k+ or more in revenue within 18 months. My highest-grossing year to date was just over $420k in revenue.
6. How Much Money Will You Need Upfront to Get Started?
Just like most things, more money is always better. However, it’s feasible to get started with $2k. Of that $2k, you will pay the following expenses: business formation expenses, insurance down payment, background check fee and other miscellaneous start up costs.
7. What Type of Person Do You Think This Job Is Best Suitable For?
I believe it’s best suited for someone that truly desires to run their own business. I tend to attract a lot of real estate agents and/or investors. But, really, anyone that has a desire to work in the real estate industry without having to sell anything will do well.
8. How Many Hours a Week Do You Work on Average?
I subcontract out 100% of the work I receive, so I work about 25 hours per week on average doing admin work and overseeing the work orders. However, when I first started that number was closer to 45 to 55 because I had to learn a lot of things in a short amount of time. Also, it took time to find good subcontractors to build a solid team.
9. Do You Have a Property Preservation Startup Guide or Course to Help Someone Get Started?
Yes, I have a course designed to help anyone in the US obtain a contract with a national company as a property preservation vendor. I offer a free introductory Masterclass to give you a better understanding of how this works and to see if this is something you would like to do. The Masterclass will cover:
- Requirements to get started
- How to make money
- How to find subcontractors
- How one client made $40k in one month
- My G.O.A.T method to set you up for success
To access the FREE Masterclass click here.
10. How Do You Manage Your Time Working While Raising Your Family?
That’s a great question lol. One recent change that I have made is homeschooling. I’m still slightly freaking out about it but so far it’s going well. I just had to shift the way I thought about school.
I had to realize that just about everything is an educational experience. Grocery shopping, buying clothes, going to the bank, going to the ATM, driving for dollars, conducting a webinar etc. I include them as much as possible in my day and explain as much as I can.
I also have developed relationships with other homeschool Moms to learn about other resources. There are so many options available these days that it’s mind-blowing. The children are enrolled in an after school program which I utilize a few days a week. I also have a drop-in childcare facility available and a babysitter.
I love the babies to life but am well aware that I need time to recover and actually conduct business without their background noise. I tend to do a lot of work at night.
Wow, to be able to make so much money and still have time to homeschool your children is nothing short of amazing.
If you’re interested in doing this I highly recommend taking her FREE Masterclass to see if this is right for you.
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Is this something you’re interested in? Let us know in the comment section.