I love numbers; Pythagoras had the right idea with his Cult of Mathematics. I was reading a Yahoo! Homes Article that broke recently with some statistics pertaining to the zombie foreclosures out there. So, I wanted to demonstrate a bit of 3rd Grade math here to show the possible numbers on take off.
301,874 “zombie” properties (TZP) dotting the U.S. Pricing: $85 per Initial Grass Cut (IGC) and $80 per Grass Re Cut (GRC). TZP * IGC = $25,659,290.00 for the first batch. Now, several large Order Mills of Safeguard Properties, predict GRC every seven days. So, GRC * 7 * 4 (number of weeks in a month) = $676,197,760.00 per month. Figuring seven months of cutting for a conservative average you take GRC * 7 * 4 * 7 = $47,3384,320.00!
You Read That Right! A Theoretical Possibility of $47 BILLION In Grass Cuts Are Lying Out There
Now, I am not privy to the numbers that Safeguard Properties will cut this year nor what they are being paid. All I did was take current numbers and do the math. My Grass Cut Pricing comes straight from MCS. I guarantee they are NOT getting paid what the Contractor is being paid. All I can report on are the numbers which are out there and personally, I believe they are LIGHT! I back my premise up with the fact that States count Zombie Properties the same way the US Government counts the unemployed; when they hit a certain length of time they drop off the radar!
Grass Cut Bidding Protocol – Mandatory FN12-0013
It has come to our attention that our customers that have a set allowable for each property just to do tree trimming! Once the GCP realized the potential, we discussed this with one of our FL grass cut Vendors particularly. This Vendor had performed a total of $1363 gross bid approval work for trimming trees in all of 2011. He agreed to start providing landscaping bids on each property, as a test. From January 1st, 2012 through February 28th, 2012, he grossed $16,087 just in trimming trees, shrubs, and other landscaping items. This is over 11 times what this vendor grossed in an entire year! We are leaving many thousands of dollars on the table by not addressing overgrown shrubs!
This is a Memo issued out by Good Choice Preservation. Folks, if you are going to have a Corporate Website, you should really practice INFOSEC! This is live on the Internet and not password protected. That is the problem with amateur hour, but I digress. We won’t even get into the Hello World! article. They work with MCS, LPS, CoreLogic and FAS amongst others. So, two points here: First, Tens of Millions of Dollars are lying out there in addition to the Grass Cuts. Second and this is some pretty serious stuff:
On FAS FIELD NOTIFICATION grass cuts, there is NO limited growth. We must pull a weed, string trim, do something. We are unable to report the grass as not needed on FAS work orders.
Now, if FAS wants to pay for work, regardless of what is done, that is their business. My hunch is that this is the edge of the rabbit hole wherein Order Mills are issuing Marching Orders which now impact both Contractors and the Order Mills’ Clients. Maybe I am wrong and I’ll retract that. Maybe I am right and the Nationals will reach out and say, “Hey, you’re toxic, but you have a knack for what you do so why not make money at it?” Yeah, right! Mark my words there is a slush fund somewhere being taken up to ensure I meet my end in some kind of horrific way!
Regardless, and make no mistake this is the first of MANY, MANY more Memos we have legally obtained, it is going to shape up to be a rough season. No money for Contractors, Contracts are going to be pulled as the Industry consolidates and many, many more people are going to tuck their children in hungry this year whom work in the Property Preservation Industry!