What Are Commercial Foreclosures?
Residential foreclosures tend to be very popular with both homebuyers and investors. However, if you want to invest in foreclosed property, you will want to consider commercial foreclosures as well.
You probably already know what residential foreclosure homes are. These are properties that are used as private residences. They are foreclosures because the last homeowner did not pay their mortgage and the loan went into default. The lender repossessed the property and resold it, usually at a good discount to recoup the money. Commercial foreclosures are also properties that have been repossessed by a lender. The difference is that these properties are zoned for business or commercial use. These properties include land that has been zoned for commercial use, retail spaces and stores, warehouse spaces, factories, and many other types of business buildings.
If you want to invest in foreclosures, there are many reasons why commercial foreclosures are very appealing. First of all, there are many commercial properties in foreclosure. You have probably read the statistics about the high rate of failure among new businesses. When businesses go bankrupt, the business holdings or properties often go into foreclosure. There are therefore many business foreclosure properties available across the country.
Secondly, there may be less competition for commercial foreclosure real estate. Both homebuyers and investors want to buy foreclosed homes, but usually only investors consider buying commercial foreclosure property. As well, the demand for these properties tends to be high. Even when homebuyers are scared off by high interest rates, businesses still need spaces to run their companies, and that means that commercial groups are still buying and renting property in all sorts of economic conditions.
Like foreclosed homes, commercial foreclosure real estate sells at a discount price. Usually, the lender who has supplied the loan for these buildings wants to recoup their money and is more interested in making a quick sale than in earning the full market value for a property. In cases where a business owns a pre-foreclosure commercial property, the company facing foreclosure usually would rather offer a discount and get some money from the property rather than risk foreclosure. As a buyer, you stand to save a lot of money.
You can rent or lease commercial buildings to businesses or you can resell these foreclosures to companies. Either way, the company buying the property will usually take care of renovations. This is another advantage commercial foreclosures have over foreclosed homes. When buying distressed homes and reselling them to homebuyers, you may need to tidy up and make the foreclosure attractive. Most commercial buyers and renters, though, are only interested in location and facilities. Generally, companies are interested in setting up their own space according to their corporate culture, and this can save you significantly on contractors.
You probably already know what residential foreclosure homes are. These are properties that are used as private residences. They are foreclosures because the last homeowner did not pay their mortgage and the loan went into default. The lender repossessed the property and resold it, usually at a good discount to recoup the money. Commercial foreclosures are also properties that have been repossessed by a lender. The difference is that these properties are zoned for business or commercial use. These properties include land that has been zoned for commercial use, retail spaces and stores, warehouse spaces, factories, and many other types of business buildings.
If you want to invest in foreclosures, there are many reasons why commercial foreclosures are very appealing. First of all, there are many commercial properties in foreclosure. You have probably read the statistics about the high rate of failure among new businesses. When businesses go bankrupt, the business holdings or properties often go into foreclosure. There are therefore many business foreclosure properties available across the country.
Secondly, there may be less competition for commercial foreclosure real estate. Both homebuyers and investors want to buy foreclosed homes, but usually only investors consider buying commercial foreclosure property. As well, the demand for these properties tends to be high. Even when homebuyers are scared off by high interest rates, businesses still need spaces to run their companies, and that means that commercial groups are still buying and renting property in all sorts of economic conditions.
Like foreclosed homes, commercial foreclosure real estate sells at a discount price. Usually, the lender who has supplied the loan for these buildings wants to recoup their money and is more interested in making a quick sale than in earning the full market value for a property. In cases where a business owns a pre-foreclosure commercial property, the company facing foreclosure usually would rather offer a discount and get some money from the property rather than risk foreclosure. As a buyer, you stand to save a lot of money.
You can rent or lease commercial buildings to businesses or you can resell these foreclosures to companies. Either way, the company buying the property will usually take care of renovations. This is another advantage commercial foreclosures have over foreclosed homes. When buying distressed homes and reselling them to homebuyers, you may need to tidy up and make the foreclosure attractive. Most commercial buyers and renters, though, are only interested in location and facilities. Generally, companies are interested in setting up their own space according to their corporate culture, and this can save you significantly on contractors.
