Yes, the opportunities that commercial foreclosures offer are now exposed. This is where real estate investors should focus in maximizing profit or income. Many businesses are doing well except for loans that are coming due. They may be just breaking even, or below that, because of mortgage payments. Eliminating the burden of loan payments coming due or might be past due would bring many of businesses back to the road of recovery.
Short selling their commercial properties is the best alternative. The smaller loss they would incur is far better than complete loss to foreclosure. Their lenders would be in the same fit as they would be having problems with cash flow. When a real estate investor comes in, both business and lender see him/her as the ?light at the end of the tunnel?. Should an investor be able to deal in straight cash transaction, it means immediate profit or income without having any problem on financing or loan restructuring. A lender could also offer easier terms in case of a short sale. They would want the buyer or investor to have the most affordable payment terms so it will not be a problem to them in the long term.
Cash-strapped medium to small businesses are besieged with a commercial property bearing a heavy mortgage. They also have options to invite additional investors or partners to the business. From this standpoint, you might say, ?Oh, that?s no longer real estate investment!? You could be right if the option is left as it is. Keep in mind that businesses want to be salvaged from the awkward situation and they would agree to almost anything that would favor their business. One thing here, never ever even consider shares of stock. That?s just paper. Inject propositions with ?what-ifs? referring directly to an impending commercial foreclosure. You may not be able to get this in one sitting but definitely the business owners will be able to draw up a scenario where the commercial property is your investment. Make sure the business can not mortgage the property without your expressed consent. Also, in case of dissolution of the business, the property will be the only asset you take from them. That?s on the negative side. On the brighter side of it, with your expertise in real estate investment, you will be the businesses? consultant on commercial properties.
The opportunities on commercial foreclosure are almost unlimited and it is just a matter of knowing your way to ?snake-in? different situations. As a real estate investor, you should have a mind set being a professional and expert on the field of real estate investment. Dealing with commercial foreclosures, do not allow or entertain ideas far-off from the main concern of real estate. Make sure that the business owners see that you are surviving very well in your line of business and they are not. The confidence they see in your way of transacting business will be the same confidence they will put on you in the process. This is what we expose in commercial foreclosures and what was exposed here could bring stiffer competition in the future if you don?t act now!
Commercial Foreclosures Gold Rush is coming. Get free real world Creative Real Estate Investing Tips
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