Some people buy investment properties because they want to make money. Others do it for the potential of making more money than what they paid for it or buying at below-market prices and making big returns on their investments–think historic renovations that increase value by bringing out a property’s beauty and history.
So, you want to find out where you can find cheap business properties. You've put yourself in the right place. Large commercial properties are hard to find.
What is the great secret to succeeding?
The secret is that there is no "perfect" source for getting all the best offers out there. Finding a big business is a matter of having multiple fishing lines in the water and being prepared to put in the work right off the bat, know that real gain comes on the road when you find the incredible "once in a lifetime" affair.
It is also a question of executing a variety of tasks, including relationship building, sending letters, and focusing on the ponds that are most likely to have the large fish—those profitable, lucrative commercial properties that you're looking for.
To get caught up in all of this, you need to spend time with other successful commercial investors. The quickest way to discover what is possible is to be in a group of people who find and invest in commercial properties that have meaning. This way, when you meet salespeople who want too much, some of you will get angry and say, "Wait a minute. There must be some way to make the buying of commercial property work. I know from watching other people that there are good deals on the market."
One of the most important things you must do is to know and believe through the nucleus of your being that you can find excellent commercial offers. You need an unstoppable desire to overcome and jump through all the obstacles that inevitably put themselves in your path.
It is incredibly important to keep in mind that large commercial properties will come into your life due to the actions you take each day. If that seems too difficult to overcome, don't worry. We are here to chart a proven path to those great flows of potential agreements. When combined with your mighty determination, our suggested path will allow you to catch these large fish.
Defining your property search
First, determine the type of properties you are searching for. You must think through your ultimate objectives to ensure that you fish in the right ponds. It is not logical, for example, to look only at category A properties. If you want to start your career by taking advantage of your way through a property. The C or D properties are the most receptive to creative funding.
Many entry-level commercial investors are generally looking for multi-unit commercial properties of 5 to 50 units. In this market segment, creative financing, including no-cut transactions, can be used as it can be difficult for homeowners to obtain conventional financing.
The reason for this is that lenders who make loans on commercial properties would much prefer to combine one loan on an apartment building of 300 units compared to an apartment building of 20 units.
This is essentially the same amount of work, and the lender earns a lot more on the bigger property. Get enough information on office buildings, small shopping and retail centers, and other types of commercial properties.
So that you can quickly analyze any transaction you encounter, even if it is not exactly the type of commercial property you are looking for.
The benefit of that is that you're going to find bargains that maybe aren't in the asset class you're focusing on. By talking to a landlord about purchasing their building, they could mention the building they want to sell. After spotting a good deal and having it under contract, you can hand the deal over to another business investor in your network.