How to Find the Best Cash Buyers for Commercial Property
So you want to sell your commercial property for cash? Who wouldn’t? But what are the pluses – and what’s the downside? How do you find the best buyers? While working with brokers is one way to get offers, what are the pluses and minuses of selling by owner? What route should you take? And what type of brokers if you opt for that help? Real estate investors, often overlooked, provide one option. Below are some tips on how, whether and why selling commercial properties for cash may make sense for you.
What are the pros of selling commercial property for cash?
When you sell a commercial property for cash, you streamline the process. That typically means no mortgage, which means a faster deal. The transaction typically comes without the contingencies that sometimes accompany commercial deals. Cash sales close much faster than bank-funded deals.
What is the downside of selling a commercial property for cash?
Banks fund most commercial property purchases, as companies or individuals tap money they otherwise wouldn’t have. This means a wide range of potential buyers are in the pool. That can lad to more offers and options. But these deals all bring in a bank or similar funder, which can set the terms for the deal, as well as adding costs and uncertainty.
How do you sell commercial property by owner?
If you want to avoid paying commissions, you’ll want to at least consider selling by yourself. But there are big risks. If you don’t know the value, you may look for the wrong price – either too high or too low. It’s important to be able to value your commercial property accurately. You can use appraisers or comparable properties to get some idea.
What type of agent should I consider?
Both residential and commercial agents can help sell a commercial property. Residential agents bring marketing might, putting your property out there among listings. Commercial agents bring more pricing savvy and prospects. And then there are various websites where commercial properties are listed, whether by owner or agents.
Where do I find commercial property buyers?
Your neighbors may already know your property. Even better, they may be interested in it. So don’t ignore people closest to you. They know the area, may want to expand or simply may know others who will be interested. Nobody knows the neighborhood, commercial or residential, better than people who are already there. They may or may not have cash on hand.
Can competitors turn into buyers?
Now and then, those in your industry can be a help and not simply competition. If you’re selling a commercial property, your competitor can be your best friend. Just as companies acquire one another, competitors can be the perfect ones to buy your property. And there’s a good chance you already know them. They may be able to fund from cash on hand.
Are real estate investors a good match for my property?
It’s important to understand that, when you sell a commercial property, you consider those in very different industries from you own. If you want to sell, you want to find someone who is serious. And if you want to sell for cash, real estate investors may prove your most likely cash buyer. They buy one property, sell it and then buy another. And they should have cash on hand. But make sure you’re working with the right real estate investor – for you.
What real estate investors are right for me?
Real estate investors often fund deals with cash. That’s their business. Some, though do a few deals a year, while others do dozens or more. Plus, real estate investors typically buy a wide range of properties. But make sure any real estate investor you deal with has a track record. Handsome Homebuyer, for instance, does more than 100 deals a year. If an investor doesn’t close on a deal, nothing else matters.
Should real estate investors know my area?
Absolutely, any investor who buys your property needs to know your region. If you’re talking with investors, you want to talk with someone who understands your market. That’s the only way they can understand the property, its value, be prepared to do renovations and find potential buyers after renovations. While real estate investors may buy a wide range of properties, they often specialize in particular areas. Handsome Homebuyer, a major real estate investor, for instance, specializes in Long Island, Brooklyn and Queens.
What type of commercial property is most in demand for cash?
If you’re trying to selling certain types of property, you’re likely to get more demand, while other types inspire less interest. Amid the e-commerce boom, retail is soft while e-commerce or “e-tail” soars. Still, retail spaces are leading to new demand. Hotels are soft, but better than at the height of Covid. While in the past selling retail meant looking for retailers, today, healthcare providers may take the space. Industrial and warehouses are in demand. But things like traffic, potential drive throughs and location can make any property hot.
How quickly can I sell my commercial property for cash?
Selling your commercial property yourself, or with brokers, can take months or longer. That’s in part because of due diligence and delays built into the process. Banks, for instance, require extensive due diligence. Once you go the cash route, without a bank, due diligence is different. Real estate investors are in the business of doing many deals a year. That is their focus, not something they fit in between other business. They need to do deals. If you work with a real estate investor, that can lead to a quick turnaround. At Handsome Homebuyer, for instance, we can turn around deals in a few weeks – and sometimes less. It’s what we do. The sooner we close the deal, the sooner we can add value to the property, which is our business. You may at least look at selling for cash. And if you do, it’s probably wise to consider real estate investors as an important part of the mix. If you’re looking in Long Island, Queens or Brooklyn, you might want to look into Handsome Homebuyer. Whichever course you take, selling for cash can lead to good deals in a good time frame.