The pros and the cons of foreclosure purchase of a commercial property can create a treacherous landscape for investors; nonetheless, foreclosure properties present the attractive possibility of incredible value. “Many of our buyers are “all cash buyers,” Terry Baltes points out. “It’s still less (to buy),” said Baltes. Baltes feels foreclosure properties can present a great bargain value for the savvy commercial property buyer.
The Positives of Foreclosure Purchase with Terry Baltes
A major motivator in buying a foreclosed property, or a property on the verge of foreclosure, is the possibility of acquiring a great financial deal. The lender who is ‘holding the bag’ on the property may be willing to unload it at a significant discount. However, the potential purchaser needs the right real estate professionals to guide the process, helping to ensure the purchaser is getting maximum value, with full disclosure of the positives and negatives of the property being considered. Another possible advantage of foreclosure purchase of a property is that the price paid is below the going market rate for comparable properties. If property prices appreciate, a sale could result in larger financial gains. Of importance as well, is the size and location of the property in question.
Additionally, a foreclosure purchase of a commercial property can cut delays in business cost by eliminating the wait for a build. The foreclosed venue can be move in ready, or nearly ready, requiring adjustment and refurbishment, but not the lengthy delays of contractor issues in a construction situation.
The pros and the cons of foreclosure purchase of a commercial property can create a treacherous landscape for investors; nonetheless, foreclosure properties present the attractive possibility of incredible value. “Many of our buyers are “all cash buyers,” Terry Baltes points out. “It’s still less (to buy)…we’re still below our long-term average in new-construction,” said Baltes. In the current economic recovery, the demand for space is outstripping the availability of space, and Baltes feels foreclosure properties can present a great bargain value for the savvy commercial property buyer.
Baltes Will Protect Your Self Storage Business Purchase-Terry Baltes
Of special interest to Baltes is the growing market in self storage facilities ownership, and how easily the purchase can go awry. A winning self storage business is one that makes money, and simple as the actual business seems, success can be elusive.
Purchasing a facility in a thriving population center is of primary importance to its success. Check the local zoning to assure that there is no property available for new facilities, or that price per square foot is unreasonable. Drive by traffic of the considered facility is important, and most storage business is attracted by convenience, and the high visibility of the facility from the street.
Check average incomes in the area, to evaluate discretionary spending available for offsite storage of belongings. The considered facility needs sufficient storage units that the facility can pay the salaries of the staff necessary to run the venue properly. Check the average rental rates that the facility can generate, as part of the cost analysis necessary to present to potential financiers of the venture.
In truth, it is important to purchase an existing facility, if that is the plan, at a point in its life when it is struggling to survive. It may be possible to purchase at a great bargain rate…if one has considered all the other factors mentioned here, which are numerous.
Success is a lot more probable, with the help and guidance of Baltes Commercial Realty, which brings experience, knowledge, financial acumen and skill to the commercial purchase decision. Terry Baltes can guide dreams to reality.