Commercial real estate remains hot in and around the New York City area. There are people buying their first property, as well as those who are interested in expanding their portfolio.
When it comes time to compare commercial properties in an attempt to make a purchase, you should keep an open mind. This includes taking a strong look at commercial foreclosures.
Just the same as residential real estate, commercial properties can go into foreclosure when the owner neglects to stay current with his or her mortgage payments.
Before making a purchase, however, there are many details to consider. Here are some things to keep in the back of your mind:
-- Use your detective skills. You want to learn as much as possible about a foreclosure before making an offer. This will help you avoid unnecessary trouble down the road.
-- Get your financing lined up in advance. Buying a commercial foreclosure comes down to one thing: timing. Timing is impacted largely by money. Be sure to have your financing lined up well in advance. This will allow you to move quickly when an opportunity presents itself.
-- Be patient. You may be anxious to receive a response from the lender, but you have to be patient as you wait for a reply. It could take several months for a lender to evaluate your offer and make a decision.
It is good to know exactly what you are doing when searching for and buying a commercial foreclosure. This knowledge will help you avoid trouble, save money and put you in position to be happy with your purchase.
Source: American Express, "5 Tips For Buying A Commercial Short Sale Or Foreclosure" accessed Feb. 24, 2015