How much does a Foreclosure Property Preservation cost to buy?

A typical Foreclosure Property Preservation sells for 1.5x to 2.5x annual revenue. With average revenue of $400K, expect to pay $600K to $1.0M.

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

/100 score

Strong

Foreclosure Property Preservation

Q: What are the profit margins for a Foreclosure Property Preservation?

The average profit margin for a Foreclosure Property Preservation is around 25%. 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.

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

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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Avg Revenue

$400K

Profit Margin

25%

Acquisition Multiple

1.5x - 2.5x

Startup Cost

$15K - $60K

Difficulty

3/5

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

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.