Problem: Banks often foreclose on so many buildings so quickly that they cannot maintain all of their properties, especially since this is not their area of expertise.
Solution: Maintenance (lawn care, gutter cleaning, painting, pressure washing, etc.) is an absolutely necessary part of ensuring that the value of a house appreciates over time: especially if the house was one that was foreclosed. This company would only deal with properties that are “real estate owned” which is a term used to describe as “properties owned by a lending organization such as: a bank, a government agency, a government loan insurer.” Obviously, there are already companies that exist in this space. However, whenever REOs want to have a job completed on their properties, they set up a bidding system. Thus, whichever company has the lowest price (or the best relationship) wins the contract. Through using extensive networks and the gig economy, a new foreclosed property management company could win the market by undercutting the existing price points. There are currently more than 40,000 foreclosed homes in the United States: creating a ripe market for disruption.
Monetization: Fees from payment by REOs, or innovate on the business model by requesting equity in homes rather than cash as payment.
Contributed by: Michael Bervell (Billion Dollar Startup Ideas)