Commercial short sales, which work in the same way as foreclosures, used to be a rather unappealing prospect. While you could buy a property fairly cheap, you would often have to find someone to help you fix it up and turn it into commercial space that could actually be used, driving up the cost.
However, today’s real estate market has created a climate in which banks and lenders are much more willing to work with potential buyers in an effort to get bad loans off their books and back into the hands of people who will be able to start repaying them. . again. As such, with the proper research, you should be able to pick up the property for less than the asking price in a short sale, assuming you follow these tips.
Know the property
Don’t go into a short sale with no idea what the property you’re interested in is about. In many cases, the bank will not want to tell you exactly how much a property is worth, so research its history and work with a professional who can identify the positives and negatives before giving you a figure of what you think it should be. be sold by
Keep this figure in mind when trying to buy the property and use the results of your research as a negotiating tool. You’ll find that lenders are much more willing to sell quickly if you make a reasonable offer that takes into account the problems the property has, plus you don’t risk offering too much in the first place.
have the budget
It’s important to remember that the lender trying to sell the commercial property has already been burned at least once before by a previous owner, so they will look for someone who can show they can back up what they say. As such, he must have more than enough money in his account to show that he will be able to handle the upfront costs and repayments of the loan over a considerable period of time.
Print bank statements and make sure the right people see them. Also, try to offer the largest initial sum you can. This will help you stand out from other buyers who are interested in the property, as well as increase the levels of trust a lender has in you.
patience is key
Don’t get frustrated if your initial efforts prove unsuccessful. Some lenders can be a bit stubborn and won’t be willing to rent properties for what you think is a fair price, instead preferring to see if they can find a better deal. Don’t get sucked into making that best offer yourself.
Instead, just wait and see what happens and always keep your budget in mind. In many cases, you’ll find that no one else has offered to buy the property, making price negotiation much easier once you show interest a second time.
