The growing number of commercial foreclosures represents a great opportunity for you to start a lucrative real estate investment business. Commercial properties may come in the form of foreclosed shopping centers, retail stores, hotels, restaurants, office buildings, shopping malls, medical centers or even multi-family housing facilities.
It is important that you determine first the type of commercial foreclosures that you want to invest in and how you plan to use the properties so that they will produce a steady income or profit.
Types of Commercial Foreclosure Investing
If you are familiar with or into the business of agriculture, you may consider buying a foreclosed farm land. One thing to keep in mind in order to be successful in commercial foreclosure investing is to stick to the market that you are familiar with or have knowledge about. You may try your hand on farming or you can rent the farm land for steady income.
If you have an existing business and you are planning to expand, you can look for a foreclosed factory or an office building. You can use some space for your own business expansion and renovate other spaces for rentals. It is also important to determine the demand for the property before you decide on buying commercial foreclosures.
Factors to Consider When Deciding of a Property
Aside from your knowledge of the market and property demand, there are also other factors to consider when buying a commercial foreclosure property. One is the location of the property. Find a commercial foreclosure property that is located in a place where there is an existing business traffic. It would not be a wise decision on your part to buy an office building in a suburb or a retail store in an area where customer traffic is slow.
Check out the value of other commercial properties in the area where you plan to buy a foreclosed building. If the value of commercial properties in the area is below the prevailing market price, then think twice about making a purchase. Find out the reasons for the low value of commercial properties in the said area.
Lastly, inspect the commercial foreclosures property thoroughly. Bring along a professional inspector to give you an honest valuation of the property. Make sure that the foundations of the building are strong and there is no imminent danger that it will collapse. Always practice due diligence when it comes to buying foreclosure properties, whether commercial or residential.