Picture this if you will - it's early in the AM hours you're out cold. Suddenly, a loud crash wakes you from your deep sleep. You spring up and out of bed to find the source of the noise? Has the zombie apocalypse begun? Are Charlie Sheen and Emilo Estevez really delinquent garbage men? Or is Michael Bay and his 'splosions in town filming Transformers 3?
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None of the above. Perhaps you were just in a deep sleep. After looking through the house with a quick crusted eye once over, you decide to head back to the warm and cozy bed.
It isn't until you've exhausted your snooze button that morning, now in mad rush to get yourself and children ready for work and school. Racing against the clock, you manage to get yourself and rat pack together as you scurry in a frenzy through the garage and into your car. But now your garage door doesn't open. You feverishly push the remote button with your first reaction being that the batteries must be dead. That's when all the pieces finally come together. The noise the woke you earlier that morning before the nagging electric buzzer on the clock radio. The noise you thought was part of your comatose state was actually a reality when you notice that the noise you heard was the snapping of your garage door spring.
Of all the days (chances are this was a Monday because everything that sucks usually happens on a Monday... not to mention that Mondays just suck in general), your garage door spring breaks and you find yourself and your kids trapped in the garage. Now the panic starts to set in as you wonder how you'll ever be able to get them to school and yourself to work. Not mention that this dilemma has pretty much immobilized you, your means of transportation to get ANYWHERE is now trapped in. In that instant, you may feel like the world is crashing down on you, and just you alone. Before you beat yourself up and start to repeatedly question, "Why me?", you should first know that garage door springs are one of the most called on repairs in the industry.
Garage door springs support the entire weight of the door. The springs are wound or stretched under pressure, tightening and loosening as you open and close the door. It's the door springs and not just the door opener that supports and lifts 300 plus pounds of weight of the door.. Like anything else under pressure, eventually your springs WILL break. So in the event that you find yourself int his little predicament, what do you do?
Here's my recommended "4- Step Process for Repairing Your Garage Door Springs:
Step 1 - Get Your Car Out of The Garage
You must be saying to yourself, "If I could get my car out of the garage, I wouldn't have a problem". If you're saying this, you're naturally speaking from frustration. The best way to get through a situation like this is to keep yourself level-headed and look for quick solutions that will allow you to continue your normal way of living without being interrupted by this common event. Just because your garage door springs have busted, doesn't mean that you don't have use of the garage door. It is still on track with its rollers and can be manually operated.
Pull the red emergency release cord located above the door to enable you to manually lift the door. Remember that the garage door is a heavy object, and even heavier without the support of the spring which would normally neutralize the weight. If it's too heavy to lift yourself, have someone else help you. If you accidentally drop the door while you are manually lifting, DO NOT try and stop it with your foot. Dropping a 300 pound door on your foot or any other body part is bound to ruin your day.
Step 2 - Identify Your Spring
Identify which type of spring you have: Extension or Torsion. Torsion and Extension springs exert a force equal to the weight of your garage door. This counter balances the 200 to 300 pound door, rendering it weight neutral so it can easily be opened.
A Torsion spring runs across a bar at the top of the inside of the door. The spring is wound and under immense tension. It's the tension of torsion spring that lifts the weight of the garage door.
Extension springs are found on either side of the door. These springs act like big steel rubber bands, stretching as the door is lowered.
Step 3 - Buy New Springs
Now that you know what type of spring you have, you need to purchase new ones. You'll want to replace all of your garage door springs at the same time. Having undergone similar aging and weathering, one broken garage door spring is a sign that the second one is about to break soon. There's no logical reason to fix one spring at a time and just wait for the other one to break, unless you enjoy the headaches and hassles.
Also, having one old spring and one new spring will throw off the balance of your garage door. You 'll also burn out the motor on your garage door opener and have even more problems. You can find and purchase new garage door springs at your local hardware store, such as Home Depot or Lowes. Prices will vary depending on the type of spring size, quality, coating and cycles.
Size - You'll need to measure your existing spring to know exactly what size replacement you'll need. There are 4 accurate measures you're going to need: (1) Wind Direction (2)Wire Size (3) Diameter - Torsion springs measure inside diameter and extension springs measure outside diameter (4) The Overall Length of the Spring.
Coating - Is it galvanized, powder coated or oil tempered? Which is going to resist rust the longest?
Step 4 - Installation
Installing your new garage door springs is not only a lengthy and complicated process, but potentially dangerous. You have got to remember that the garage door springs are wound up with more tension than Steve Carell as the 40-Year Old Virgin. The slightest mistake or mis-calibration could be a deadly one.
9 times out of 10, homeowners will find the task of repairing or replacing garage door springs too complicated, if not too dangerous. Most people don't have the time or inclination to replace or repair the broken spring themselves. If that sounds like you, your best option would be to contact a professional technician. It will also save you the time in measuring and shopping for the right springs.
Hopefully, this information will not only help you and your family have a safe and happy summer, but will also keep you prepared and well-educated in the instance that this occurs any time of the year!
A new article on June 3, 2009 from MSN Money writer Michael Brush indicates that there is a third wave of foreclosures still to come from prime borrowers (i.e. those previously "safe-borrowers" with sound credit and fixed-rate mortgages) as a result of job losses thanks to the worsening economy ("Coming: A 3rd Wave of Foreclosures").
The article states that "In the first quarter, the percentage of these borrowers who were behind on their mortgages or in foreclosure had doubled from a year earlier, to nearly 6%" and goes on to say that "Credit Suisseanalyst Rod Dubitsky predicted last week that 8.1 million mortgages, or 16% of all mortgages, will go into foreclosure over the next four years. A weak economy, continued declines in home prices and rising delinquencies among prime borrowers all but ensure that foreclosures "will march steadily higher," he says." Not such great news for the economy, but good news indeed for entrepreneurs interested in starting a foreclosure cleanup business to clean and repair foreclosed homes for the banks.
To put this in perspective, this means that there will be over 2 million foreclosures a year and more than $2,025,000,000 up for grabs in money that will be spent on cleaning up these foreclosed properties (since the average bill is $1000+ to clean up one of these properties).
Let's take a look at how you can position yourself to capitalize on this coming foreclosure movement
Set Up Your Company Properly
If you want to be hired for cleanup or preservation work, you'll need to operate your business as a professional company. The good news is that you can set up a business quickly and inexpensively, and usually on your own. Many people decide to set up an LLC (Limited Liability Company) because of how quickly and easily it can be done but you'll want to check with your accountant or other business professional to select the type of business entity that's right for your personal situation.
If you do decide to start an LLC, you can usually find all of the documents you need online from your state's government website. Usually the branch you're looking for will be called the "Industrial Commission" or "Corporation Commission" or similar. Try typing in "start a business + ______ (your state)". Anything ending in ".gov" is usually a good place to start as it indicates a government site.
Once your business is set up, you'll need an Employer Identification Number (EIN), which is like a SSN for your business. You can register for one online: type in "IRS" & "EIN" into a search engine to find the online registration link.
As soon as you have your EIN (which you can usually get immediately online), you can open up a business bank account for your company. This step is very, very important. In the excitement of things, many people get caught up in the day-to-day dealings of running a business and use their personal accounts to pay for business expenses. Not only does this present an accounting nightmare at the end of the year, but it could present problems for you with the IRS if you don't keep your personal and business finances separate.
Once you legally set up your business, you may be required to register your business with your county or city in order to get a business license to operate. You can start by calling City Hall or the Office of the County Clerk to inquire as to whether or not you need a city/county/state business license and if so, how to get one.
So to recap:
1. Legally set up your business
2. Get your EIN # and set up a business bank account
3. Apply for a business license
4. If you want to do preservation work, determine whether or not you need a contractors' license
Get Insurance
You absolutely must have a Commercial Liability Insurance policy and Workers' Compensation Insurance in order to run your business. Not only is insurance essential for protecting yourself from liability and protecting those that work for you in the event of a work-related injury, but many asset management companies will not do business with you if you do not meet their minimum insurance requirements.
Insurance will likely be one of your largest start-up costs, however, most insurance companies allow you to pay the premium on a monthly (rather than yearly) basis, which definitely makes this expense more affordable.
General Liability Insurance policies can cover the following: bodily injury, property damage, contractual liability, personal and advertising injury, professional liability (also known as Errors & Omissions (E&O) insurance, this coverage protects you and your business from litigation caused by charges of professional neglect or failure to perform your professional duties), hired auto and non-auto liability and umbrella liability.
You'll want to speak directly with your insurance agent to get a better idea of the extent of the coverage provided by their particular policy and one that is best suited for your individual needs
Workers' Compensation Insurance is required in most states when you have W2 employees, and some states also require your insurance to cover your 1099 contractors also. Workers' Compensation ("Workers' Comp") covers your employees' medical and disability expenses related to work-related illness and on-the-job injuries.
In the states where you are not required to cover your 1099 contractors you would need them to provide proof that they carry their own Workers' Compensation insurance. Although tempting to shift the financial burden of maintaining a policy onto your 1099 contractors, in all reality, you are probably better off to take on the cost of all staff Workers' Compensation (all W2 employees and 1099 contractors). The reason is that it's difficult to find only independent contractors that have their own policy. In addition, this industry has such high turnover that if you put this restriction on your independent contractors, you'll waste valuable time and lost revenues trying to find replacements in a hurry.
Here's a great tip: sometimes you can get "pay-as-you-go" insurance where your workers' compensation insurance premiums are based on your actual payroll, rather than an estimated amount. This is great for companies that are just starting out or have a fluctuating workload. Type in "pay as you go workers comp" into a search engine for results in your area.
As a second tip, we've used Farmers Insurance for years and have always had excellent customer service and great rates. Just Google "Farmers Insurance" for an agent in your area.
Foreclosure Cleanup v.s. Property Preservation Services
As the name suggests as a Foreclosure Cleanup Company, you'll be cleaning out all of the junk in the house (also called a "trashout or a "junk out"), as well as cleaning the interior of the home. You may also be required to remove vehicles on the property. Usually foreclosure cleanup companies are also responsible for doing a basic landscape cleanup which includes hauling out Garage Door Repair Henderson any junk from the front/back yards, cutting the grass and trimming trees/bushes.
Cleaning up the property is the extent of services offered by a Foreclosure Cleanup Company, whereas a Property Preservation Company is also involved in the "securing" of the property and the "preserving" of the property.
Here are some of the services that a preservation company may offer (note that a Property Preservation Company will generally also offer cleanup services):
Securing the Property
o Initial vacant property inspection
o Lock changes
o Boarding of windows and doors
o Temporary roof repair
o Securing swimming pools
Preserving the Property
o Exterior Debris removal
o Abandoned vehicle removal (cars, boats, etc.)
o Interior Debris removal (junk-out)
o Hazardous waste removal
o Interior cleaning services including carpet cleaning
o Window washing/graffiti removal
o Window replacement
o Pool services (draining, acid washing, maintaining, etc.)
o Pest control services
o Yard maintenance/landscaping
o Snow removal
o Winterization
o Gutter cleaning
o Pressure washing
o Carpet removal & replacement
o Tile/Floor repairs
o Painting
o Sheetrock/drywall repairs
o Carpentry repairs
o Plumbing fixtures repairs & replacements
o Fire & mold remediation
o Fence repair
Here are a few things to consider when determining the extent of the services you want to offer:
A Contractors' License is generally not required for Foreclosure Cleanup Company but is likely required for preservation companies doing work over a certain dollar value (usually $500 - $1000+). Sometimes this license can be obtained by attending a course and successfully passing a test whereas other states require previous, verifiable industry experience.
The insurance premiums tend to be higher on companies that offer preservation services as they are considered to be a "general contractor". However, the revenue potential is much higher as preservation services tend to run from a few thousand dollars upwards instead of $800 - $1500 for each cleanout.
Usually what people do is start out initially offering just the foreclosure cleanup services and then when things pick up, they'll add preservation items to the list of services they offer. This let's them get their foot in the door without having to spend a whole lot of money upfront when setting up their company.
Source the Right Equipment & Tools
The great thing about starting a foreclosure cleanup company is that the initial expenses are quite low as much of the equipment and tools needed for cleaning foreclosures can likely be found in your own garage:
o Cleaning chemicals (i.e. all purpose cleaner, disinfectant, toilet bowl cleaner, window cleaner)
o Cleaning supplies (broom, mop, scrub pads)
o Vacuum cleaner
o Garbage bags and shovels
o Work gloves and disposable plastic gloves
o Lawn mowers & lawn tools
o Wheelbarrow
For the smaller items you don't have on hand, check your local dollar store. Their prices can't be beat and they usually have the same chemicals and cleaning supplies as the other retailers. Once you start doing some volume, consider shopping for your supplies at Sam's Club or Costco to keep your expenses low.
You can also find used equipment in great shape (such as vacuums) by going around to your local Saturday morning garage/yard sales. If you have a "Re-Use" center or a Salvation Army, you may consider checking there also as they often have vacuums and other small equipment or yard tools for sale.
For hauling junk, you'll need some sort of trailer and a vehicle large enough to pull it. If you don't have a truck and a trailer, you can always borrow a friend's truck and rent a trailer from U-Haul or just go ahead and rent a moving truck from U-Haul. (Remember though, that you'll be charged a daily rate plus a per-mile rate when you rent a moving truck whereas if you use your own truck and just rent the pull-trailer, you'll only incur the daily rental rate for the trailer.)
Sometimes you'll be required to clean a property that doesn't have electricity or water. In the event that there's no electricity, you'll need a generator to operate the vacuum cleaners and other electrical equipment. These can be rented at Lowe's or Home Depot and is a much better alternative to purchasing one outright unless you're going to use it on a regular basis (a new one will run you about $500+).
To save on expenses, it's best to rent equipment in the beginning.
Once you get up and going, it may be worth looking into purchasing equipment of your own. Check the online classifieds ads (such as Craigslist, Kijiji and Backpage) for used trailers, generators, etc. You should also check with U-Haul as they have been selling some of their excess trucks as of late.
Stay Safe on the Job
As a business owner, you're responsible for keeping your staff safe while working on the job. Working safely is paramount to the health of your staff and the reputation of your business (and also keeps your insurance premiums low). It's imperative that you review safety issues prior to allowing anyone to work on the job - you must provide both classroom and on-the-job safety training to all new hires.
Now, it doesn't have to be anything fancy; you can spend 20 - 30 minutes reviewing safety policies, safe working practices and answering any questions and then you'll be done! Make sure you have people