How to Become a Repo Man in Texas

Auto repossession is the most popular type of repo service.
Auto repossession is the most popular type of repo service. (Image: multi-coloured cars image by Ivan Hafizov from

To become a Texas repo professional, you must have the ability to work well with others, especially individuals upset by the fact that you are about to repossess their personal property. Repossession occurs when a debtor fails to make payments on a leased item, such as a car or dishwasher, and the creditor decides to retake possession to cover remaining debt. A Texas repo business acts as the middleman: the individual or company that picks up the item in question.

Establish a Business as Texas Repo Man

Choose the business entity you will use for your repo services. If you do business of any kind in the state of Texas, you must register as a business entity, even if you are the only individual providing the services. Common entities include sole proprietorship, limited partnership, general partnership, corporation and limited liability company. Refer to the "resources" link below for more information on these business structures.

Visit the Internal Revenue Service website (see resources) and apply for an Employer Identification Number, or EIN,also called a Federal Tax ID Number. Even if you plan to associate only yourself with the business, an EIN is often necessary for registration purposes, opening business checking accounts and business tax filings.

Open a Texas Secretary of State SOSDirect account so that you can file your registration documents online. Although there may be additional fees for filing through this online service, it will save you time. See the Resources link for access to this service.

Download the appropriate registration forms from the Texas Secretary of State website (see Resources). Which form you use depends on the type of entity you choose for your Texas repo business.

Obtain your North American Industry Classification System (NAICS) code number from the U.S. Census Bureau. The number for repossession services is 561491 (see Resources below). You may need this number for future business registration purposes.

Start Providing Services as a Texas Repo Man

Check on your competitors. Find out to whom they provide services, what those services are and how much they charge for each service. This will give you a leg up on the competition, as you can offer competitive services and prices to the same clientele.

Figure out which services you will offer through your Texas repossession business and what prices you will charge. Some repo businesses specialize in auto repossession, which average $150 to $250 for 30 minutes of service, according to Thomas Investigative Publications,. However, you could also expand your market and repossess items such as furniture, appliances, boats and farm equipment.

Purchase the equipment you will need to effectively run your repossession business. The most obvious piece of equipment is a large truck or moving vehicle with towing capabilities that will easily accommodate all the different items you pick up. You may also need some sort of storage facility for times when you can’t deliver items immediately to clients.

Promote your business to potential clients by visiting them in person, introducing yourself and telling them about the services you offer. Potential clients may include banks, rent-to-own centers and car title loan companies, to name a few. Be sure to provide potential clients with your price list.

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