Is Commercial Property a Good Investment?

What are ideal Properties?
Commercial bank-owned properties are available to people and businesses wishing to purchase real estate at affordable prices.

Real estate owned (REO) properties are owned by lenders, such as banks, following unsuccessful foreclosure sales that failed to result in the bank's obtaining an offer to buy the property for the outstanding loan amount.

The bank can legally repossess these properties. Usually the amount left owing on the loan is higher than the current market value of the property. However, the owner-bank is quite eager to sell these commercial properties to interested investors at excellent prices, and on very favorable terms.

Examples of Some Properties for Sale
Some examples of excellent commercial properties that are bank-owned, and available are:

• a new, 20,000-square-foot building located on a main thoroughfare
• a substantial, very impressive, 16,000-square-foot office building also on a main thoroughfare
• a beautiful building containing 24 offices and 13 restrooms, located next to a major highway

These examples and many more, show the caliber of real estate available in REO listings. The prices never have been better, so it's the right time to buy.

Properties such as these can be viewed through photographs on web sites of companies offering lender-owned real estate. Prospective buyers can qualify for purchase right on the Internet.

Advantages of Lender-Owned Commercial Real Estate
One of the greatest advantages in owning commercial property is the rate at which such property can be leased to responsible, established businesses. Unlike residential property, commercial real-estate is leased to motivated tenants who are in business to make a profit. This fact greatly benefits the commercial property owner by giving added security for dependable rental income.

Commercial property buyers are able to lease substantial square footage for extended periods of time to excellent businesses. Some leases can extend for 5 to 10 years in length. This is a major long-range benefit of owning commercial property.

A reputable real estate company, offering the bank-owned properties, can make agreeable purchase prices and financial arrangements available with a minimum of complexity for interested buyers of commercial REO properties. Investors can save a lot of time and energy by buying such property, already inspected and validated by a bank.

Because commercial property is customarily more valuable than residential, this factor works in favor of an investor-buyer due to the tremendous amount of capital investment saved by a discounted price in the high end of real estate figures representing tremendous economies of scale. Savings literally can be in the millions.

What are some additional advantages of buying REO real estate? The following are more of the practical benefits buyers can expect:

• liens are already removed, and taxes already paid
• lender-owned properties can be inspected, and are listed with professional real estate companies
• the owner bank itself generally offers financing on excellent terms
• title searches are often discounted by using the same title company used by the bank
• commercial REO property is typically in excellent condition
• in slow real estate markets, these properties are available at amazing discounts

With all these great benefits available, smart investors are looking to the best, local real estate companies for opportunities to view listings of commercial properties currently available in the community.