How To Find Commercial Property Foreclosures & Short Sales
In the commercial real estate industry, we are currently facing a time of adversity and distress. Plain
and simple, there has not been a lot of business circulating in the past year or so. There are not many
buyers out there, and the buyers that do exist are looking for commercial property foreclosures and
short sales. We call them "vultural buyers". So, if someone wants to buy, they want to get a "deal",
and there's no better deal than a heavily discounted piece of commercial real estate. Especially one
that has been foreclosed-on or one that a lender is willing to short sale. These opportunities are out
there waiting for us to capitalize on them, but the problem is most buyers just wait and hope
something great pops-up on their door step, instead of taking initiative and going finding it. The big
question is how can one find these opportunities?
The majority of buyers are still using the traditional methods of finding property, such as going to the
city and searching through the Notice of Default (NOD) records, visiting the REO websites of the
major lenders, talking to property owners, talking to property managers and speaking directly to
lenders. These are just a few ways of looking for foreclosures and short sales, but they are the most
common. To find the perfect opportunity, you have to look outside the box, expand your horizons, and
use other alternative methods of looking for commercial property to buy. In these economic times,
you have to use all of your resources to pick-up great "deals."
Going to the city and reviewing the Notice of Defaults is a good way, but the problem is that
residential and commercial properties are lumped together, so if you don't know the address of the
commercial property you are interested in, you will have a hard time identifying which are commercial
properties and which are residential. This makes searching seem like you're searching for a needle in
a haystack. You can also visit a lender's REO website and you can find a few opportunities, however,
you will notice that there will not be many in your market. This is because lenders don't update their
REO inventory websites often.
Another way is, if you are interested in a particular area, speaking with the existing property owners
about their situation is a good way to try to uncover any potential foreclosures or short sales. You can
also speak to property managers, and some will tell you about a borrower who may be in trouble with
their lenders, but some property managers are bound by confidentiality relationships and will not
divulge any information. Finally, speaking with lenders is a great source of information about possible
foreclosures and short sales. The only problem is that they are called by so many people; they are
now starting to ignore calls.
So, all of the above does not work out for you, what do you do? Well, you can subscribe to a website
called www.rEaltytrac.com. This website tells you about properties that may be going into foreclosure.
It is mainly focused on residential properties, but there are some commercial properties available.
Also, you can become an expert in the market in which you want to purchase your commercial
property, and go to the city to identify if any of the commercial properties of interest have filed a
Notice of Default.
In closing, if you are a very busy individual and do not have the time or energy to do the above, you
may consider hiring a commercial foreclosure and short sale expert agent. Not only will they know
about all of the upcoming possible commercial foreclosures and short sales, but they will also present
them to you before they hit the market. In addition, foreclosure and short sale purchases are much
more complicated and riskier than a standard commercial property purchase. It is highly advised that
you use an agent who has done them before and has experience dealing with the title, escrow
Company and the lender. One error or omission and you could end up with a sour transaction.
Believe me, we've been doing short sales and foreclosures for quite some time now, and it is sad to
see how some agents fail to identify great opportunities or protect their buyers in the foreclosure or
short sale purchase process.
If you have any questions whatsoever, please reach out to us. We are happy to share any of our
expertise with you. Here's the telephone number (949) 790-3150.
Sherman oaks real estate