Many of those in the real estate business have always considered commercial properties as great fixer uppers. And with the currently large number of foreclosed commercial establishments, you can enjoy the possibility of earning more.
Why Foreclosures as Fixer Uppers
It has long been established that compared to other existing real properties for sale, foreclosures --- whether pre-foreclosures, foreclosures at auction or bank foreclosures --- can provide buyers with a way to save much money.
The reason for this is quite simple. Distressed properties are usually sold at an amount that is considerably less than their current market value. Sellers, most often banks, can even agree to lower the list price in order to reduce their inventory of repossessed properties and at least recover some of their losses.
Fixing Up Commercial Properties
Just like you would a repo home, you should be able to determine the extent of repair or renovation needed for the commercial property to be habitable. Obviously, you would require the services of a professional inspector in order to check every nook and cranny. This inspection is very important if you want to avoid any future headaches that come with structural damages.
If you will be leasing the commercial building, you should definitely consider upgrading the exterior to attract businesses looking for work space. It would also be wise to fix up the parking lot and landscaping. Even the signage should receive special attention since fixing it up can immediately change how the building looks.
Of course, the interior is another important matter. You will have to spend a considerable amount of money. This is perhaps why it is crucial that you have done the math and have set aside enough money just for the rehabilitation. You will also need to consider the amount you will have to charge in terms of rent in order to determine how long you will be able to recover your initial investment.
It would seem that investing in commercial properties as fixer uppers might be a bit challenging. But you should believe the many other successful investors who have managed to make a huge profit from such business. Just remember to address all possible risks involved and prepare for them as best as you can.
Why Foreclosures as Fixer Uppers
It has long been established that compared to other existing real properties for sale, foreclosures --- whether pre-foreclosures, foreclosures at auction or bank foreclosures --- can provide buyers with a way to save much money.
The reason for this is quite simple. Distressed properties are usually sold at an amount that is considerably less than their current market value. Sellers, most often banks, can even agree to lower the list price in order to reduce their inventory of repossessed properties and at least recover some of their losses.
Fixing Up Commercial Properties
Just like you would a repo home, you should be able to determine the extent of repair or renovation needed for the commercial property to be habitable. Obviously, you would require the services of a professional inspector in order to check every nook and cranny. This inspection is very important if you want to avoid any future headaches that come with structural damages.
If you will be leasing the commercial building, you should definitely consider upgrading the exterior to attract businesses looking for work space. It would also be wise to fix up the parking lot and landscaping. Even the signage should receive special attention since fixing it up can immediately change how the building looks.
Of course, the interior is another important matter. You will have to spend a considerable amount of money. This is perhaps why it is crucial that you have done the math and have set aside enough money just for the rehabilitation. You will also need to consider the amount you will have to charge in terms of rent in order to determine how long you will be able to recover your initial investment.
It would seem that investing in commercial properties as fixer uppers might be a bit challenging. But you should believe the many other successful investors who have managed to make a huge profit from such business. Just remember to address all possible risks involved and prepare for them as best as you can.