Top 3 Ways To Locate Potential Commercial Real Estate Deals

By Tony Seruga, Yolanda Seruga, And Yolanda Bishop Of Maverick Real Estate Investments Inc.

Finding the best deals is a necessity in the commercial real estate business. In fact, it can be considered one of the most important steps in commercial real estate investing because, without locating quality deals, you do not have the right property to create the quality investment in which you make big profits.

A good strategy in commercial real estate investing is to commit to the best deals that create the highest return on your investment. Great deals are characterized by returns of three to four times the initial investment. When you do these larger returning deals, you can literally do less work by doing fewer deals per year. If the deals are just average, you have to do many more, which automatically means more work. Synergy is a keyword in this industry, as every property takes about the same amount of work no matter what the return.

The quality of deals is extremely important, so you must make sure your resources for locating deals are updated and accurate. You may also prefer some resources over others depending on your area of specialization. For example, if you specialize in for sale by owner (FSBO) properties, you may drive around locally in search for properties, and check local newspapers and magazines. The following resources are excellent in locating deals. See which ones you can implement in your search for great commercial property deals today.

Auction houses are great places to locate properties of all conditions and types. Many times you can get excellent deals on properties that you may otherwise have to spend a lot more for if they were listed with a broker. You can get on mailing and e-mail lists of different auction houses so they notify you of properties that will be going to auction. This allows you time to investigate the property as an investment, before the actual bidding day.

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Auction houses also sometimes provide the option to purchase a property at a certain price before it goes to auction. You never know what opportunities will come along, so it is a good idea to stay in contact with several auction houses to be privy of the properties moving through their hands.

One of the best and most common places to find commercial property is through commercial brokers. This would make sense, as they are the ones who actually have the properties listed. You can go to them with a criteria sheet or specific information on the type of property you would like to purchase.

You can find brokers on a local or more widely spread basis, even going as far as calling brokers in other states. Most will be more than happy to call other brokers and find listings that best fit your criteria. They will bring you properties as they become available.

Another great advantage of a commercial broker is their ability to find pocket listings, or listings about to go on the market, but that have not yet officially been listed. You can get a jump ahead of the competition and find excellent deals. Get in contact with a few brokers every day, and watch targeted properties roll in!

Another place to locate properties is on the internet. There are many sites that have hundreds of commercial properties for sale ranging from raw land to large retail and apartment complexes. These sites have information on both the property and the broker, so you can easily get in contact with the broker and learn more about the property. You can filter the information as you see fit, usually according to your specific criteria.

One of the best sites is Loopnet.com. This site houses hundreds of brokers all over the United States who post their many listings. You can filter through deals very quickly and reach a larger audience than you would in just your own community. Your ability to build contacts also increases with so many brokers and agents at your fingertips. I urge you to check out these commercial real estate sites and see what deals you can find.

Using these three resources- commercial brokers, commercial real estate internet sites and auction houses will probably provide you with more properties than you will know what to do with. You can take the best and leave the rest, as you determine the best deals for your investment.

If you are used to working locally, I urge you to branch out of your comfort zone and use these resources to locate deals in new areas. Your opportunities will no longer be limited to a certain area, which will open up many new possibilities.

As you locate commercial real estate deals, be sure to always have a broad and creative perspective, as many of the best commercial deals are created from something that was not initially evident. Many times the treasure is hidden, and it takes some research to uncover the true potential of a property.

About the Author: $600 million worth of property is being managed by Tony Seruga, Yolanda Seruga, Yolanda Bishop and their partners as of May 2006. They specialize in commercial real estate, and are always looking for new projects across the U.S.

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