Can anyone tell me the best way(s) to find distressed commercial property owners who may be motivated enough to want to sell at huge discounts?? Any recommended targeted list sources? Or any suggested sites that may have commercial properties at a discount?
You’re asking someone to give you the store without paying for it.
I will tell you…
The good ways are not the cheapest ways. And the best ways, are not the fastest ways.
I will give you a clue…
Start mailing to all the commercial owners in the price ranges and areas you want to buy. The tighter you sift your list, the more you can eliminate trash from your net.
Some ( a lot of ) things to consider when profiling the property you want to sift for are: square feet, location, demographics, rent/income per square feet/leaseable space, property use/zoning, price point, number of units, lease types (NNN, NN, N), lease terms, vacancy, average expenses, CAP rates, type/niche of tenants (automotive, fast food, etc.), strength of current tenants, current condition of the project, cosmetic appeal, age, and whatever else you sift for. How about proximity to similar businesses, or population density, or highway/freeway access?
Once you got all/most of that figured out, then you create a mailing list, using that profile, and start letting prospective sellers know you are ready, willing and able to buy their properties …and forget the rest.
Meantime, you will be doing everything a commercial real estate broker does to uncover prospects, including building relationships with prospects. And getting the word out that you’re interested in buying “x” type of commercial real estate.
The difference is, you are sifting out all the prospects you don’t want to buy from, and sifting in the exact ones you do want to buy from.
Are there shorts cuts? Maybe. Find a broker that performs, that is also willing to find property for you. The good agents have spent years in the farm you’re wanting to go into, and will have a temporary advantage over you, in that they will know who’s coming in, who’s wanting out, and who’s staying in commercial investments in your farm area.
They will have an established stable of proven buyers they go to first and it may be a hard to egg to crack.
That said, when you can establish yourself as an actual/provable buyer (and not a tire-kicker), you will be presented with deals that make sense, but not likely to be be listed. If you establish yourself as a repeat buyer, you’re likely get access to deals that not only are not listed, but nobody else knows exists.
And you’re likely going to be contacted by competing brokers for your business …along with their pocket listings. How does that happen you ask.
When you start closing on deals, you’ll begin to appear on the producing agent’s radar who are likely to start mailing YOU in an attempt to establish a relationship as a either a buyer or a seller. That’s when you’re likely to get a chance to bite on the riper apples that nobody else knows are available.
Otherwise, start mailing …like a pro.
Do to your local courthouse and see if you can get a list of eviction filings. You are looking for the landlords name his mailing address and the building address. Send letters to these landlords. Also, network with property managers, accountants and real estate attorneys.
Lastly, let them find you. Do some marketing telling the world what you’re looking for.
Thanks Guys for the responses.Got something out of it
what do you think about flipping this distressed commercial properties?
Thanks for your response quite informative.
I would love to answer your question, but you need to narrow it way down to something more specific.
Check lis pendis and forbearance filings at the local Registry of Deeds.