I need help now! 
Commercialshortsale.org is a site for the business person whose company is upside down with loans
that cannot be serviced with the income from their business. Please check out our seller page and our
advantages of commercial short sales over bankruptcy page. Note that we have one strategy that allows
you to reduce your payments and keep your business.This site
is also for the investor who has seen advertisements for commercial short sale training-on TV, in their
e-mail, in their mail. Can you really make a small fortune with commercial short sales without a lifetime of
experience in commercial real estate and an army of contacts? Please read our sections on flipping and
on education.
If your goal is to buy a commercial short sale and you have your funding in place please see our buyer
page. If you wish to acquire property for yourself but have not yet acquired funding you should also
look at our flip page and our education page.
The future of commercial short sales.
Sources predict the fallout from commercial property loan defaults will be much larger than the fallout
from residential loan defaults. Whether this is true or not, the fact remains that the large number of
commercial loans which come due in the next few years cannot be refinanced conventionally due to
declines in real estate prices. These notes will either become loan modifications, or short sales, or the
properties will become REOs. There is an opportunity here to either acquire these properties at very
favorable prices, or to make substantial income by flipping them to an end buyer. If you are flipping you
can protect your interests best by actually being in a position to close. Please see our page on flipping.
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Why commercial real estate?
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Commercial real estate has many advantages over residential real estate:
- One good deal can set you up for life if you can manage to hold onto it.
- On the other hand if you are just flipping the deal, you can still expect to
- put more money in your pocket as you are working with a larger deal.
- Financing commercial deals may be easier. If the business you are acquiring has a
- cash flow that will support the loan, lenders will look more to the property itself and less to the credit
- and other income of the borrower, than they would with a rental house, for example. Note the lender
- will be very interested in the debt coverage ratio.
- Management.You have to acquire a lot of rental homes before
- you can afford to hire a management company or manager to take some of the burden off of yourself.
- Many commercial properties have enough cash flow to support a management team
- right out of the gate.
- You can attract silent partners with commercial properties. This is almost impossible to do
- with rental houses.
- Seller financing is the norm in commercial real estate. Although some
- homeowners will tolerate seller seconds, and a few will even prefer them, most will balk. They want
- their money out now to meet their personal needs...another house, college, travel. A commercial seller
- may not want all the money now. If they have owned a profitable business for many years they do not
- need it now, and they are often sophisticated enough to appreciate the tax benefits of receiving
- payments over time. Owner financing of commercial properties averages a much higher percentage of
- the purchase price than residential owner financing does.
Why are we talking about seller financing on a site dealing with commercial short sales? Because like
associates with like. Business owners know each other. Perhaps your short sale will not work out, but
the business owner may have a friend down the block who owns their business free and clear. Short sales should
not be worked in a vacuum. They should be seen as one tool in an investor's toolbox.