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BIZBITE

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.

67
Acquisition score
Strong

Avg Revenue

$400K

Profit Margin

25%

Acquisition Multiple

1.5x - 2.5x

Startup Cost

$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.

Revenue Range

Low End
$150K
Typical
$400K
High End
$1.2M

BizBite underwriting snapshot

Pass for now

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.

29
Avoid / 100
Data confidence
low
40/100
Financing fit
medium

Category-level fit before lender-specific diligence.

Confidence cap
58

Weak source data caps the final score.

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

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.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

+$83/mo
after debt service
Deal price — $800K
Range: $400K (1.5×) to $1.4M (2.5×+)
Down payment — 15% ($120K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 8.00%
Current prime-based SBA rates: 7.5–10.5%
Loan term — 10 years (120 mo)
Standard SBA 7(a): 10 years for business acquisition
Down payment
$120K
15% equity injection
Loan amount
$680K
85% SBA-financed
Monthly payment
$8K/mo
$310K total interest
Monthly profit
$8K/mo
at 25% margin
Monthly cash flow after debt service
+$83/mo
Down payment paid back in ~1445 months — long horizon

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.

Where to Buy

National Association of Mortgage Field Services

Industry trade body with vendor directory and certification programs

Safeguard Properties

Largest national field-service company — primary source of work orders

BizBuySell — Service Businesses

Established preservation routes occasionally listed for sale

67/100Strong

Acquisition Score

Profit margin
17/30
Entry multiple
29/25
Market depth
8/20
Risk (charge-off)
8/15
Deal momentum
5/10

Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.

Quick Facts

Category
service
Difficulty
3/5
Buy price
$600K$1.0M

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