Top 10 Reasons to Sell to Commercial Property to Real Estate Investors
It’s no secret that more people are investing in real estate. While many investors pump money into the stock market, cash is flowing into commercial real estate. Data shows commercial real estate is attracting investors and leading to more deals. And that can be good news for you if you’re selling commercial real estate, regardless of the sector within the category. Handsome Homebuyer, for example, buys more than 100 properties a year. We routinely improve properties, adding value, so the price we offer isn’t based on what we see, but how we can add value to your property. If you’re selling commercial real estate, it may be time for you to consider reaching out to us or to other real estate investors. Here are a few reasons that Handsome Homebuyer, and real estate investors in general, may be the right buyer for your commercial real estate.
1. Real estate investors have the funds
In the end, the amount you get is the most important, if not the only important, aspect of a sale. Most buyers need to borrow. That means looking for a mortgage. And that means time and cost, since the company taking the mortgage has to roll in the cost of interest. Handsome Homebuyer and other real estate investors fund our own deals, so there’s no interest rate. And we want to put our money to work. We also have the expertise to figure out the highest and best use of commercial real estate. Figuring out ways to maximize the value of your property makes us more likely to be able to give you what your property is truly worth.
2. Real estate investors bring expertise
Selling a house, going from showing to closing, can be time consuming and complex. But that’s nothing compared to the process of selling commercial real estate, which can be more costly. Handsome Homebuyer and some other real estate investors have the experience, expertise and resources to deal with issues.
3. Real estate investors specialize
If you want to consider selling to a real estate investor, you want to make sure you’re dealing with the right one. Make sure the investor brings knowledge regarding your property. In our case, we specialize in the New York City suburbs, such as Nassau and Suffolk, and New York City. We bring knowledge about the market that lets us understand the best value for your property.
4. Wide range of deals within specialty
While we specialize in a geographic region, we do a wide range of commercial real estate deals within that. We’ve done everything from gas stations to retail, industrial to office and vacant land. We know how to do deals for a wide range of properties, and we know how to handle a wide range of problems along the way. We also routinely work with residential and commercial brokers, as well as people selling their own property.
5. Track record matters
If you work with a real estate investor, you want to know that they’re able to close deals. The way to be sure of that is to see whether they are doing deals. We do well over 100 real estate transactions a year, from houses to vacant land to a wide range of commercial properties.
6. Is this the right time to sell?
Interest rates remain low, although they’re rising, making this a good time to do a deal. And investment in commercial properties is growing, in part because companies, like Handsome Homebuyer, have the funds and the will. “The commercial investment prospects for 2022 for all mentioned property types in the United States improved compared to 2021,” according to Statista. That’s good for sellers and for us, since we can offer more as the market rebounds.
7. Why the time may be right
The COVID-19 crisis impacted every industry, and commercial real estate sales were no different. Now things are recovering and rebounding. Commercial real estate sales in 2020 totaled about $280 billion, down from $405 billion the prior year, according to Statista. The good news is that commercial real estate is recovering. By the first three quarters of 2021, for instance, the investment market rebounded, exceeding 2020 and 2021 volumes. We have the cash and we’re ready now that the economy has recovered.
8. What sectors are strong
Covid has changed commercial real estate, leading to new forces in the market. Retail’s weakness in terms of brick and mortar remains, but healthcare operators are taking more space. Despite the weakness for brick-and-mortar retail, online retailers, or e-commerce, are fueling demand for warehouse space. Even as restaurants face tough times, ghost kitchens specializing in delivery are cropping up. And the big picture is commercial real estate is rebounding as Covid concerns lesson. Statista said hotels actually saw “the greatest improvement” in investment prospects in 2022, although that’s likely because they were starting from such a low point. Industrial and distribution properties have the highest investment prospects, according to Statista.
9. Investor deals are more certain
Commercial deals can fall through for many reasons. Funding and zoning are just two reasons. While funding with our own cash means deals close more quickly, it also means our deals are far less likely to derail. Banks may back off from mortgages, but since Handsome Homebuyer and many other real estate investors self-fund, that’s not a concern here. If you can’t get a mortgage, that’s also not a problem for us. We have experience resolving a wide range of issues and are willing to invest (that’s our business) to resolve issues.
10. Bigger can mean better
We do more than 100 deals a year across all sectors, which means we can get discounts on work done to improve property. It should cost us less to renovate a property, so we can add value at lower cost than you could. That means we can pass on some of that to you. While there are many potential buyers, real estate investors are definitely worth considering when you sell a commercial property. If you consider commercial real estate investors in the New York metro area, you may be happy if you consider the Handsome Homebuyer. While residential is in our name, we’re also busy doing commercial deals. Reach out to us and find out whether we might be able to give you a deal that will work for you, while we do a lot of the work when it comes to finding ways to add value to your property.