As we discussed here yesterday, some of the nation’s largest banks have stopped foreclosure proceedings – for the time being – in all 50 states. If you own a foreclosure clean up or other real estate related service business, eg, plumbing, lawn care, painting, locksmithing, etc., you may be wondering, “What impact is this going to have on my business?”
In fact, a colleague who is in the business said that she received this question via her blog just a few days ago. Here’s how we see it shaking out.
Foreclosure Clean Up & Other RE Services Business Will Continue to Thrive
The reason is simple, the longer banks have to hold onto properties, the longer they will have to be maintained. Yards will need to be cut and maintained, locks will need to be changed, gutters will need to be cleaned, winterization and other interior and exterior services will have to be done, etc. And, these are exactly the types of services a full-service foreclosure cleanup business can handle.
“But,” you may be thinking, “what happens when all of this is done? Will there still be foreclosure clean up work?”
And the answer is yes, because until a home is resold (or rented), it needs to be maintained to keep it from falling into disrepair. Furthermore, this doesn’t include handling “mishaps” like vandals, vagrants and thieves causing damage to a property. And, this happens a lot.
In fact, lenders have been known to tear a property down instead of maintain it because it’s cheaper to do so. An article in the Wall Street Journal spoke to this issue, noting:
Victorville city officials said the bank told them the cost of finishing the development would exceed what they could sell the homes for. . . . The bank also faced escalating city fines as vandals and squatters took over the sprawling housing project, leaving behind graffiti and drug paraphernalia, . . .
This is rare though, but it does illustrate how much upkeep is needed when a property is not occupied.
Foreclosure Cleaning is an Evergreen Business
The bottom line is, as long as homes are bought and sold, there will be a need for the types of services that foreclosure clean up businesses (and other RE service type businesses) provide. That’s what makes it an evergreen business. No matter what the housing market is doing, properties still need to be maintained. It just so happens that now, they’re needed more than ever. But, you have to be proactive in getting the work.
As the foreclosure cleaning business owner who landed 10 jobs from one property preservation company illustrates, if you put in the effort, the work is definitely there. But, you have to go after it.
One Thing to Keep in Mind When Marketing Your “Cleaning Foreclosures” Services
Think beyond the foreclosure crisis. Build your business for the long haul and target clients who can give you jobs in good real estate markets, and bad. We’ll talk more about this in a post tomorrow.
Start a Successful Foreclosure Cleaning Business – Right from the Start!
Get everything you need to start a successful foreclosure clean up business, eg:
Learn how to market your foreclosure cleaning business;
Learn how to price foreclosure cleaning jobs to make the most profit
Register with HUD to get foreclosure cleanup contracts;
Learn what type of insurance you need for your foreclosure clean up business;
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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.