The goal is to secure that splendid 25,000 square foot ex-paper bag manufacturing site on the corner. The same one that has been tantalizingly begging to be turned into an indoor/outdoor child’s petting establishment! The time to make the move is now to secure that dream! What has prompted this renewed interest in the commercial property? The ‘For Sale or Lease’ signs on the building and the little phrase on the bottom of those advertisements, ‘Pre-Foreclosure Special Financing Accepted’. Let the games begin.
Financial Dealings Involve Tact and Professionalism
The key to assessing the viability of purchasing a commercial property, especially one that includes amounts that could finance third world nation’s annual expenditures, is how best to finance the deal. Hands-down, commercial property, especially distressed unoccupied for years sites, are worth licking the old chops as there are many reasons for the benefits of attaining these gems. The pre-foreclosure advertisements are normally written in locations that appease the lending institutions yet are not without prideful reconnaissance by the soon to be ex-owners of said business. For reasons best left unseen and not spoken of for this review, the business went under and the business owner must now salvage the bare essentials from the failed endeavor and begin again or not. This is the time when professionalism and tact will pay off and in a big way. If the dream of owning that piece of property, for the next ‘great idea’ is in mind and the backing is already nailed down, then there are methods in which to obtain that prize. Trust this guy on that. This is not the first ride in the turnip truck.
Early Smart Bird
The world of commercial foreclosures can best be summed up in one brief and concise phrase, ‘the early smart bird gets the pre-foreclosure worm’. This is one of the best methods for obtaining a commercial piece of foreclosed upon or about to be foreclosed upon properties and it can be done relatively expeditiously. Start by researching both the owner and the lender of the property in the sights. This will answer any and all of the most immediate questions regarding price, size, geographic amenities, demographics, age of building(s), and all the good stuff. There is no need to speak to anyone at this juncture of the game and believe this man; it is a bit of a game with numbers replacing pieces on the game board. This is not to say that the seriousness of the foreclosure should be ignored or worse accentuated, heavens no, that would be is terribly uncompassionate and goes against every fiber of a real business venture. Celebrate when the first 100,000 widgets are packed and ready to ship to Indonesia, then hoot and holler and high-five, even virtually.
Timing of the Call to the Owner or Lender
After all the pertinent Internet research work has been completed, now decision to give the owner or the banker, depending upon the age of the foreclosure, a call, can be made. If it is the owner then the leverage that can be used is monumentally exponential. If it is the bank then that is another topic but just as lucrative. The amount that is in foreclosure can be the entire mortgage plus interest to obtain the property yet in a few select cases the take-over and save my business option exists. It is these prizes, these diamonds in the rough that have proved to be just the right amount of buying leverage to close the deal. Ask Pepsi how the firs plant opened in Michigan and the research will tell you that it was through a failed independent bottler who just so happened to float the down stroke of the property.
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Tags: bank, foreclosure, investing, properties, REO, secrets