How much does a Foreclosure Property Preservation cost to buy?

A typical Foreclosure Property Preservation sells for 1.5x to 2.5x seller's discretionary earnings. With estimated SDE of $100K, expect to pay roughly $150K to $250K before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Foreclosure Property Preservation?

Startup costs range from $15K to $60K depending on location, equipment, and scale.

Service

Foreclosure Property Preservation

Banks pay you to clean up the houses they just took back

Bottom line

Accessible entry point; validate local supply before buying.

Property preservation contractors are hired by mortgage servicers and banks (via national field-service networks like Safeguard, Cyprexx, MCS) to secure, winterize, mow, debris-clear, and maintain foreclosed and REO properties. Routes pay per work order — typically $50-$400 — and a single contractor can complete 15-30 orders per day with cheap equipment.

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Acquisition score

Margin · multiple · SBA data

67Strong

Avg revenue

$400K/yr

$150K–$1.2M range

Profit margin

25%

~$100K SDE

Multiple

1.5–2.5×

of SDE

Est. buy price

$150K–$250K

startup: $15K–$60K

How It Works

You sign vendor agreements with national field-service companies, then receive work orders via their portals: lock changes, lawn cuts, debris removal, winterizations, board-ups, photo inspections. You complete the work, upload before/after photos, and get paid net-30/45. Volume is counter-cyclical — it spikes in any housing downturn.

BizBite verdict

Watch / verify

Foreclosure Property Preservation has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.

67Strong

low data confidence · 40/100medium financing fit

Why it may work

No strong positives yet. More verified data needed.

Be careful

!Source link status has not been verified yet
!No last-checked date yet
!No SBA category enrichment yet
!No category operating model yet
!Low data confidence

Deal Calculator

Priced off $100K SDE — can this deal service its own debt?

3.43×

DSCR · Lender-comfortable

Purchase multiple — 2.0× SDE ($200K)

Category range: 1.5×–2.5× SDE

Down payment — 10% ($20K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 10.50%

Typical SBA 7(a) range: 9.5–12% (prime-based)

Loan term — 10 years

Standard SBA 7(a): 10 years for business acquisition

Purchase price

$200K

2.0× of $100K SDE

Cash to close

$26K

$20K down + ~3% closing

Debt service

$2K/mo

$29K/yr on $180K loan

Cash-on-cash

273%

cash back in ~5 mo

Debt service coverage · what the lender sees

3.43×+$6K/mo after debt

Most SBA lenders want ≥1.25× coverage; 1.5×+ is a strong file.

SDE = revenue × margin estimate for this niche; it includes owner compensation, so budget your salary out of cash flow. Excludes working-capital injection, capex reserves, and taxes. Actual SBA terms vary by lender and borrower.

Pros

+Counter-cyclical — recessions massively expand work volume
+Low startup cost — pickup truck, mower, basic tools
+National field-service networks supply steady work orders
+Easily scaled with crews and subcontractors

Cons

-Per-order pricing has been squeezed by national vendors over time
-Net-30/45 payment terms create working-capital strain
-Documentation/photo requirements are strict — chargebacks for sloppy work

Best For

Hands-on operators with a truck, basic trades skills, and tolerance for paperwork

Operating Costs

Major costs: pickup truck and trailer, mowers and basic hand tools, dump fees, fuel, photo-management software subscription, and labor as crews scale. E&O insurance required by most networks.