Often, I’ll receive an inquiry from an individual looking to expand an investment portfolio into commercial real estate. Beyond the initial discussion regarding the financial aspects and return on the potential investment etc., we talk about the different sectors of commercial real estate.
This has happened more often in the economy we’ve been experiencing during the past several years. As some investors believe they can pick up quality real estate that is financially distressed or in foreclosure proceedings for, literally, pennies on the dollar.
There are quite a few issues to be aware of when considering pursuing troubled assets and especially when considering purchasing nonperforming commercial mortgages. In purchasing troubled loans, you don’t have the standard Due Diligence time frame you would normally have in a typical transaction. You have to be able to act quickly. Buying a loan can be risky; however the return can be greater in that you would typically be buying the asset at a significant discount.
The attached article will be of great interest for those investors looking at this type of transaction.
To read this article in its click HERE.
To view this week’s Featured Property click HERE.
Larry Dietz, an associate broker with Saurage Rotenberg Commercial Real Estate, has over 30 years of Sales, Marketing and Public Relations experience. He is a Designee member of the Certified Commercial Investment Member Institute (CCIM) and CCIM Louisiana Chapter; a member of the Commercial Investment Division of the Greater Baton Rouge Board of REALTORS® (CID); as well as an affiliate member of the National Association of REALTORS® (NAR). He is a licensed real estate broker in Louisiana and Mississippi.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).