According to an article in DS News, an informative real estate 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 to the fact that just over two thousand commercial mortgage loans are due over the next year.
Of those, more than 30 percent will likely NOT pass their refinancing tests, according to Fitch Ratings, a global ratings agency that focuses on data, research and credit opinions for the world’s credit market and investors.
Commercial Business for the Garbage Industry
What does this mean for the foreclosure cleanup industry? In a word, PROFIT!
A foreclosure cleanup business provides services ranging from interior and exterior repairs to maintenance, debris removal, property protection through window and door boarding and lock changing, to occupancy and vacancy inspections, painting and more. Much of the joke surrounding the foreclosure cleanup industry centers on residential trash and maintenance; however, with the unfortunate dose of commercial mortgages slated to hit trouble this year, foreclosure cleanup on the commercial front can be a solid outlet for business contracts for new and existing foreclosure cleanup companies.
Commercial trash and cleaning accounts can come from office buildings, day care centers, gas stations, retail stores, restaurants, multi-unit apartment buildings, and similar real estate.
Less competition in commercial foreclosure cleanup
Commercial foreclosure cleanup accounts will have less competition because most companies in the industry focus on residential trash.
Easy to add service to existing businesses
A foreclosure cleaning business owner can add commercial foreclosure cleaning to their list of services easily by simply upgrading equipment and supplies and turning to professionals who handle commercial foreclosures.
For example, as the owner of a junk business, start by compiling a list of commercial real estate brokers in your geographic area and contacting them. Also, do some research and create a list of commercial lenders in your city and contact them about their foreclosure cleanup business. Use the term “Commercial Foreclosure Cleanup” in your literature and conversations with professionals you contact.
Also, by browsing the business sections of newspapers to see what’s going on in the industry in your own city and by keeping an eye on online real estate multiple listing services, you can quickly become familiar with commercial foreclosures coming up. are coming.
Win Mind Share and Ask for “the Sale”
Stay in touch with the brokers and listing agents for these properties. Earn “mind share” by consistently reaching out to them 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 a quote from you on a commercial property. Always ask if they have a property that needs a quote. Ask for “the sale” every time, at the end of every conversation.
Network for consistent businesses with larger payouts
Also, consider networking at House meetings, business breakfasts, realtor meetings, etc., and advertise this new business division of your foreclosure cleanup company.
Business transactions typically have a higher payout, are more formalized, and can lead to steady work once you’re in the right place with a broker or lender.
How the commercial differs
Keep in mind that commercial cleanings will differ from residential cleanings in that you will likely have to deal with larger spaces, shorter deadlines, and likely addendums to any contracts you may present for your signature. In addition, you may need to get around security systems (ie, a foreclosed business may be housed in a large commercial building, and your entry and exit may need to be coordinated with security in the main lobby).
Additionally, you may need to clean industrial-sized equipment. For example, when cleaning a residential home, you will be accused of cleaning full-size stoves, dishwashers, and refrigerators. However, in handling cleaning and garbage collection tasks for, say, a restaurant, you’ll be working with restaurant-sized freezers, refrigerators, stoves, range hoods, and the like. This means your cleaning solutions will need to be stronger and you will need more of them.
Be aware of environmental regulations
Also, in handling commercial cleanups, you may need to dispose of materials that you won’t necessarily find in a single-family home. For example, in restaurants, you may need to dispose of tubs of cooking grease. Just check the environmental regulations to make sure you’re 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’re cleaning a daycare, you might have desks, chairs, books, file cabinets full of papers, toys, rugs, etc. to dump Make sure your vehicle is big enough to handle the job, or consider renting a yard roll container.
Lucrative 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 removal venture.
Much success on the business front of the mortgage servicing industry!