Commercial Real Estate Frontline

Today I’m at a 75,000 +\- square foot commercial space that my client is foreclosing on. This property is located in the Boott Mills in Lowell, MA.

It is highly likely that we are going to see an increase in commercial property foreclosures over the next several years. If you are liquid this is a great time for you to buy.

When you’re investigating a commercial foreclosure opportunity you handle it much the same way you would any other purchase but you must keep in mind a few things.

1) You need to identify what, if any, liens are superior to those of the foreclosing entity.

2) You need to inspect the property as you would any other.

3) You need to understand that the deposit you are placing is ‘hard’ meaning you will not get it back if you are the successful bidder and you fail to close. Said another way – make sure your financing, if any, is guaranteed.

4) Determine the maximum amount that you can pay for the property under your investment guidelines and bid only up to that amount.

If you follow these steps investing in commercial real estate foreclosures should be no more intimidating or risky than any other commercial real estate investment.

For more info on the property that I’m at today visit www.Tranzon.com

Sent by my iPhone.