Buying Commercial Foreclosures Part 2 – Researching Properties
I cannot stress enough how important advanced research is when trying to position yourself ahead of the competition. Most buyers begin their research on an REO property as it comes into the market. By the time they have determined if the property is even worth buying, or if they are going to be able to get financing on it, several weeks may have gone by. If you’re starting your research at the same time, then you’re going to find yourself fighting and trying to out bid the competition. However by tracking commercial properties well before they even hit the market, you will be better positioned to get your offer in front of the bank before the competition even knows what’s hit them.
You can pretty much determine which properties will eventually come onto the market as an REO by paying attention to properties that are currently in default on their mortgage, also those properties that may have an interest only loan coming to maturity soon. Although there is no exact science that will allow you to know exactly when a particular property will be hitting the market and for how much, you can at least use these trends to help you prepare for when they do.
For example:
~ I am currently tracking 5 multi-family properties for a client that are likely to be foreclosed on over the next 90 days, and will inevitable come back on the market as REOs. My client and I have already gone to the properties to get an idea of their exterior condition, and also to get a feel for the areas. Based on our observations and sales data for the areas, we have already determined a what price my client will be an interested buyer (provided the interior condition meets or exceeds our expectations). Once these properties do hit the market, my client will be in a position to write up an offer the same day after we’ve been able to view the property. This advanced preparation allows my client to have an edge on his competition, who may be as much as 2 weeks away from being able to make a decision about making an offer. ~
If you are thinking about Purchasing REOs, then you will want to make sure the agent you choose is already tracking property in this manner as part of their daily business activities. If you currently have an agent who isn’t tracking properties in advance as described above, you may want to consider finding one that is.
Related Posts:
Buying Commercial Foreclosures Part 1: Understanding the Bank’s Position
Buying Commercial Foreclosures Part 3: Alternative Markets
Commercial Real Estate: Alternative Financing
Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com
Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521
Legal disclaimer : I am not an attorney or tax professional. The information contained in this article/blog is intended to provide general information on the subject and not to provide any legal or tax advice. You should not act upon this or any information without first seeking independent tax and/or legal counsel.
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