How to find a good commercial property for investment
For real estate investment, rental yield is very important. Good Commercial or Industrial real estate investor are always looking for bargain. But where can we find such bargain?
1) Target Foreclosure Sale or Distress Sale
In general, the property that interest buyer are those that is selling at relatively low price compare to the surrounding unit. Foreclosure sale or distress sale should be the target.
Monitor the mortgage foreclosures on your property market. You must follow closely at more property auction site. The bank will just foreclose the property and auction it. The bank should get the best value for the owner and at times this do not happen. The bank may just want to discharge their liability during the auction.
2) Target at owners migrating
When comes to migration, most people will just want to let go their property fast and move on. Their main concern will be to market it off fast and with time not on their side, the highest possible price may have to be compromised.
3) Look for inexperience landlord
Some commercial or industrial landlords are new in commercial real estate investment. They may own a good piece of property but due to their inexperience they are unable to fetch a good rental. With a low rental, the value of the property will go down. However, there is nothing wrong with the property, value fo the property drop can due to the poor management of the owner. You can always approach the landlord and give them a price that is below market value but yet excite them. This is very common for factory sector for sale. Most factory owner may not know how to position the property, and when come to the factory for rent effort, they do not even know they rent out the whole factory below market price.
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