The real estate market is constantly changing, especially when it comes to commercial properties. Although things ground to a halt after the housing bubble burst in 2008, there seem to be some healthy trends developing in the commercial market lately. With many properties selling for far below their market value, now’s a perfect time to get in on the action. Here are a few things that smart bidders should be on the lookout for.
1) Hospitality is Hot.
Forget about office space. If you want to make some serious profits in the commercial real estate market, you should be snatching up hospitality and multi-family properties such as hotels and apartment buildings. The slow market has created unprecedented demand for affordable housing, and now’s the perfect time to capitalize on it.
2) Non-performing Loans Are In.
The stigma that used to surround investing in a commercial property with a non-performing loan is long gone. Banks are happy to give end users the financing they need to rehabilitate non-performing properties, and that’s good news for our bidders. Right now, the terms of taking over non-performing loans are easier to understand than ever before, and there’s a lot of money to be made by renting out cheap commercial real estate.
3) Liquidity is King.
Flipping commercial real estate is finally becoming popular again, which is a good sign for the economy. Many buyers are looking for properties they can rehab and sell for a profit, so you should keep an eye open for any commercial real estate with a lot of liquidity. Even if you don’t want to do any renovations yourself, you can pick up a promising piece of land and then sell it to a professional flipper for a nice profit. It’s really exciting to see the commercial real estate market finally picking up again. Whether you want to resell properties or rent them out yourself, feel free to ask me any questions you may have and I’ll give you my advice on what has worked best for me.
