How to Add “Commercial Junk” to Your Foreclosure Cleaning Business
According to an article in DS News, a real estate training publication that focuses on foreclosure trends and other aspects of the delinquent mortgage servicing industry, $ 23 billion in commercial mortgages will mature this year. This translates into the fact that two thousand commercial mortgage loans are scheduled to mature over the next year.
Of those, more than 30 percent are likely NOT to pass your refinance tests, according to Fitch Ratings, a global rating agency that focuses on credit data, research and opinions for the world’s credit market and investors.
Commercial business for the garbage industry
What does this mean for the foreclosure cleaning industry? In a word, PROFIT!
A foreclosure cleaning business offers services ranging from interior and exterior repairs, to maintenance, debris removal, protecting property through window and door siding and changing locks, occupancy and vacancy inspections, painting, and more. Much of the joke around the foreclosure cleaning industry centers on maintenance and residential trash; however, with the unfortunate dose of commercial mortgages set to cause problems this year, foreclosure cleanup on the business front can be a solid outlet for commercial contracts for new and existing foreclosure cleanup companies.
Business trash and cleaning accounts can come from office buildings, daycare centers, gas stations, retail stores, restaurants, multi-unit apartment buildings, and similar real estate.
Less competition in commercial foreclosure cleanings
Commercial foreclosure cleanup accounts will have less competition because most companies in the industry focus on residential trash.
Easy to add service to existing companies
A foreclosure cleaning business owner can easily add commercial foreclosure cancellations to their list of services simply by increasing equipment and supplies and targeting professionals who handle commercial foreclosures.
For example, as a junk business owner, start by compiling a list of commercial real estate brokers in your geographic area and contacting them. Also, do a little research and create a list of commercial lenders in your city and contact them about their foreclosure cleaning business. Use the term “Commercial Foreclosure Cleanup” in your literature and in your discussions with the professionals you contact.
Additionally, by browsing through the business sections of newspapers to see what’s happening in the industry in your own city and keeping an eye on multiple online real estate listing services, you can quickly become familiar with the commercial foreclosures ahead.
Win Mind Share and ask for “the sale”
Stay in touch with the brokers and listing agents for these properties. Earn “shared mind” by communicating with them constantly with professional material and following up with a phone call to see if they have any questions about your services and to see if they need you to give them a commercial property quote. Always ask if they have a property that needs a budget. Ask about “the sale” each time, at the end of each conversation.
Network for consistent businesses with larger payments
Also, consider networking at House meetings, business breakfast meetings, realtor meetings, etc., and announce this new business division of your foreclosure cleaning company.
Business transactions generally have a higher payment, are more formalized, and can lead to consistent work once you are right with a broker or lender.
How is the commercial different
Keep in mind that commercial cleanings will differ from residential cleanings in that you will likely have to deal with larger spaces, smaller deadlines, and possible attachments to any contracts you may present for signature. Also, you may have to bypass security systems (i.e. a foreclosed business may be housed in a large commercial building, and your entry and exit may have to be coordinated with lobby security).
Also, you may need to clean industrial-size equipment. For example, when cleaning a residential home, you will be used to cleaning standard-size stoves, dishwashers, and refrigerators. However, when handling cleaning and garbage collection tasks for, say, a restaurant, you will be working with restaurant-sized freezers, refrigerators, stoves, hoods, and the like. This means that your cleaning solutions will need to be stronger and you will need more.
Be aware of environmental regulations
Also, when handling commercial cleanings, you may need to get rid of materials that you won’t necessarily find in a single-family home. For example, in restaurants, you may need to get rid of greasy containers for cooking. Just review the environmental rules to make sure you are following proper procedures when disposing of materials that may be hazardous to the environment.
Roll container vs. Vehicle
Another factor when working with commercial landfills is the large amount of furniture and materials that may need to be removed from a unit. For example, if you are cleaning a nursery, you may have desks, chairs, books, filing cabinets full of papers, toys, rugs, etc. to dump. Make sure your vehicle is big enough to get the job done or consider renting a rolling container for the yard.
Profitable aspect of your business
There are several factors to consider if you decide to venture into commercial foreclosure cleanup. But with billions of dollars in commercial mortgages coming due this year alone, it can be a lucrative aspect of your foreclosure junk business.
Much success to you on the business front of the mortgage servicing industry!