Creative ways for finding commercial deals?

Question

I'm curious if anyone out there had any tips to share on creative ways or untraditional ways of finding off-market commercial deals.

Traditionally, we've pulled lists, drove for dollars and created relationships with brokers. In regards to the lists, we're using Propstream. Does anyone use other sources or have found that certain criteria are more successful than others?

Any and all information will greatly be appreciated! Thanks in advance!

Logan Hartle · Answer

Definitely utilize your network. I would contact every business owner, insurance agent, mortgage broker etc that you know and let them know what you are looking for. Often these people own or know someone who owns commercial space.

Bennet Sebastian · Answer

I just started a direct mail campaign and got a call from an interested seller on an industrial property. Sent out about 100 hand addressed envelopes to my target properties. Too soon to tell how effective this will be but I’ve tried virtually everything else.

Francis Louis Vogel Jr · Answer

There are plenty of properties worth less than the debt, and there are more foreclosures to come. Most of the distressed multifamily properties are B, C and D class properties. These properties can provide great returns with cap rates from 8 percent to 12 percent on existing income, and in most cases have plenty of vacancy for even more upside.

Property sources:

Get to know the attorneys in the distressed market and the lenders with existing loans. Establish relationships with brokers who specialize in multifamily properties who track distressed apartments and have relationships with lenders. Offer to protect their reasonable fee for acquisition opportunities they source for you.

Notes:

Consider buying notes but be sure to understand the risks of stepping in the lender's shoes. Consider the collateral, the collateral title, the borrowers' intentions, and jurisdiction issues related to the foreclosure process and recent bankruptcy/cram down court decisions. Also consider the time, risks, and costs to get from lender to property owner.

Henry Clark · Answer

@Tanh Truong

Day care buildings.  Industry is stressed and either the business and property will be for sale; or check with the owner of the building with their tenant going out of business.

Re-purpose to MFH depending on size and layout.  By default should be in a good location.  Obviously check zoning.

High end commercial, check on KinderCare locations.

Check both listed and off market.

Tanh Truong · Answer

Thanks for the input everyone!

Creative ways for finding commercial deals?

Most Popular Reply