This is post is a response to Mark Cuban’s recent post, “The Mark Cuban Stimulus Plan – Open Source Funding“.
Hey Mark,
A friend pointed out your post and I couldn’t resist participating. Like most entrepreneurs my brain has been working double time the last 6 months. Seems nothing will fix this mess accept for the Federal Reserve Bank to take a loss and buy back all the paper money they’ve been printing.
Reading a recent article in RD about home foreclosures I had an idea that fits your challenge. This business idea would…
- create 1,000s of jobs nationwide
- preserve property and home values
- counteract increasing crime rates
- be a legitimate expenditure for TARP funds.
I call it CRAPS(lol) or Commercial & Residential Asset Preservation Service. The business consists of property maintenance, security, and monitoring services. The target customers are banks and real estate holding companies that possess vacant and foreclosed property.
Services
For each property monitored by the service basic checks are performed daily to weekly. Things like…
- lawn maintenance (ordered as needed)
- pool water treatment (Florida has a lot of pools and mosquitoes)
- checks for door and window breaches
- checks for proper function of security devices.
Proactive and Deterrent Security
Depending on the property value a variety of security devices can be deployed on-site to deter crime and preserve the value of the property.
- Security Cameras (Real or decoy, based on property value or subscribed plan)
- Motion Activated Flood Lights (Cheap)
- Small Portal Battery with charging solar cells (most properties won’t have power)
- Wireless Phone Security Alarms (No need for telephone land lines)
- Yard Signs that advertise proactive security monitoring
The Job Positions Created
Local Agents
A local person that oversees a set number of properties. Could be anybody with decent transportation. Heck, they might even end up monitoring the house they were kicked out of.
Regional Supervisors
They are the manager over a group of local agents for a given geographical area.
Lawn & Landscape
This service would return some of the lost business to local lawn and landscaping businesses. Local agents could also do it themselves for extra income.
Security Installers
The service would also employ security alarm installers as well.
Central Reporting
If reporting alarms are installed a monitoring center is probably needed, the
employee in the center would dispatch the police or local agent as needed.
Benefits of the service
- Property value is preserved by thwarting vandalism
- Property condition is preserved by proactive repair
- Neighborhood crime levels are reduced
Pricing
My thoughts are that this service should be based on the value of the
home as it was last appraised. It seems only fair that the bank pay a
rate based on the same artificially inflated price their client (the home owner)
paid interest and taxes on. A monthly service fee, say 1-2% annually, would
probably cover costs and make the business profitable.
Software
As a software developer, my mind is naturally designing the software needed to run the business. A web-based software database is in order, where agents log their checks and activity for each property. Property owners can also login to set activity details or generate reports. I guess you would call such a system Property Management Software or PMS (lol).
Summary
So I’m not that good at coming up with acronyms but hopefully I made you laugh. But seriously, to anyone reading, consider this open source business plan my contribution to Mark’s challenge. Take the idea, build upon it, and if you are interested I will be more than happy to build the required software on a contract basis.a