According to an article in DS News, a real estate information publication that focuses on foreclosure trends and other aspects of the delinquent mortgage servicing industry, $23 billion in commercial mortgages will come due this year. This translates to the fact that just over two thousand commercial mortgage loans are due within the next year.
Of those, more than thirty percent will likely NOT pass their refinancing tests, according to Fitch Ratings, a global ratings agency that focuses on credit data, research, and opinions for the global 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 replacement, to occupancy and vacancy inspections, painting and more. Much of the joke around the foreclosure cleanup industry centers around residential trash and maintenance; However, with the unfortunate dose of commercial mortgages set to face problems this year, foreclosure cleanup on the commercial front can be a solid outlet for commercial contracts for new and existing foreclosure cleanup companies.
Commercial garbage and cleaning accounts may 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 Clearance
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 easily add commercial foreclosure cleaning to their list of services simply by increasing equipment and supplies and turning to professionals who handle commercial foreclosures.
For example, as a garbage business owner, start by compiling a list of commercial real estate brokers in your geographic area and contact them. Also, do some research and create a list of commercial lenders in your town and contact them about your foreclosure cleanup business. Use the term “Commercial Foreclosure Cleanup” in your literature and conversations with the professionals you contact.
In addition, by browsing the business sections of newspapers to see what’s happening in the industry in your own town and keeping an eye on online real estate multiple listing services, you can quickly become familiar with commercial foreclosures that are happening. are coming
Earn Mind Share and Ask for “the Sale”
Keep in touch with the brokers and listing agents for these properties. Gain “share of mind” by consistently contacting 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 an estimate for a commercial property from you. Always ask if they have a property that needs an estimate. Ask for “the sale” every time, at the end of every conversation.
Network for consistent businesses with larger payouts
Also, consider networking at Chamber meetings, business breakfasts, realtor meetings, etc., and advertise this new business division of your foreclosure cleanup company.
Business transactions generally have a higher payment, are more formalized, and can lead to constant work once you’re right with a broker or lender.
How the commercial differs
Keep in mind that commercial cleanings will differ from residential cleanings in that you’ll likely have to deal with larger spaces, shorter deadlines, and likely addendums to any contracts you may present for signing. Also, 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 the main lobby security).
Also, 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 that 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 get rid of materials 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 the proper procedures when disposing of materials that may be hazardous to the environment.
Rolling Container vs. Vehicle
Another factor when working with commercial dumpsters 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 handle the job, or consider renting a rolling yard container.
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 just this year, it can be a lucrative aspect of your foreclosure removal business.
Much success on the business front of the mortgage servicing industry!