Short Sales are increasing sales!

The commercial real estate market is following residential real estate market down the drain. It 'was delayed by 12-18 months, but is now in full foreclosure!

This will be much larger than the residential situation, we have seen over the past three years. Commercial properties are financed differently than residential. They typically have mortgages on them that ball (must be paid off) in 3.7 or 10 years. When these loans expire, are typically refinanced. Depreciation in the market today, many of these commercial properties will not qualify for refinancing. The economy has forced companies to downsize or close put more pressure on owners of commercial properties. Often rent reductions are given for groped to retain tenants. Even with cuts, many companies are closing their doors. Third thing is there are no government programs to help companies maintain their properties. (Unless it is a bank or manufacturing machine!)

The result is a mutual unsolved. This creates a situation in which property owners will be required to pay the loan, refinancing, foreclosure or short sale property. Short selling is a method of enormous over the next several years. It allows the owner to sell the property at market value today, if the bank allows it.

Investors are gearing up to face this great opportunity. They can now buy properties for 60 to 90 percent of the value. At these rates, often the property is now cash flow, even at a reduced rent. Make sure you deal with an investor who has experience in the commercial selling. Also, do not pay in advance for the negotiations. Legitimate investors usually do the deal with their taxes paid by the lender.

Investors are buying up these great deals, often leasing to lower rates and still binging at a profit! They can now buy property for 60-90 percent of the value. After the short sale, the property often is cash flow, even at a reduced rent. Deal with an investor who has experience in the commercial selling. A regular real estate agent is not always the best way to go. Also, do not pay in advance for the negotiations. Investors typically do the real deal with their taxes paid by the lender.

Be aware that owners of commercial real estate may be held liable for the amount forgiven for the short sale, and the amount forgiven can be considered as income on their tax return. Owners of commercial properties should consult your tax and legal team before proceeding to see how this may impact their tax and financial situation.

This is the clear solution as the United States market through a major restructuring. Profit opportunities for investors and liabilities for the owners of removal will be huge .......