Hidden Gem Of Real Estate: Commercial Short Sales

Easy Money in the Commercial Foreclosure Goldrush

With the real estate investing market in the condition that it is in, it can seem like no one is making a profit. But that is not true. Due to the threats of foreclosure, lenders and buyers are willing to let properties go for a fraction of their market value in a short sale. These commercial short sales are where your opportunity is.

Why Commercial Short Sales Are Different

One of the most surprising facts about the burgeoning commercial short sale business is that you can flip properties with very little effort in fixing them up. This is because there are many properties out there that are not financially distressed. They can have stellar records of timely rent payments and still be in danger of foreclosure. This is a bit puzzling at first, but figuring this contradiction out is the key to the whole commercial short sale business.

The Secret Behind all the Commercial Pre Foreclosures

Commercial short sales are different from residential short sales in that all buyers are also real estate investors. Many of them took out loans in the early 2000'sshort term loans that would allow them to only pay the interest over the period of the loan. The investor would then rent the property out to pay for the interest and expenses (and turn a profit at the same time) At the end of the time period the investor would either sell to someone else and pay off the loan or refinance (if his profits were good enough to justify hanging onto the property). But then the residential bubble burst and the real estate prices plummeted, just as the loan payment came due. Real estate investors could neither refinance (due to banks forced to become more conservative in their loans) nor sell the property under normal conditions. Either foreclosure or a short sale became their only option. And all this comes even if the property is performing up to expectations!

Make Money in Real Estate Now

Not all opportunities in the real estate market are created equal, and discovering which ones are the gems and which are the dirt is the real trick. Learn how to analyze the value of properties rapidly, as soon as they hit the market and you'll be able to turn a significant profit ahead of your competitors.

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Copyright (c) 2010 Jack Bosch

by: Jack Bosch

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