Commercial Short Sales
I am a Commercial Broker in Illinois and Wisconsin. All the talk these days is about residential short sales. The dirty little secret in our industry is that commercial properties are in even worse shape. Here in the Chicago/Milwaukee metro areas the numbers of commercial properties "upside down" are staggering.
Does anyone know of a Commercial Short Sale class being offered anywhere? I am working on several commercial properties but could sure use some help.
Thanks
Big picture, how do you see it different that residential?
Here is my experience;
For the most part, the properties are held in an LLC. You need to be able to get to the decision maker in the LLC to get the bank info and the OK to proceed. This is very time consumming. Next the bank will require the LLC to turn over all asset info to determine if money is available to catch up the note. This process is also very long. Rent rolls must be submitted, NOI must be verified, taxes etc. A commercial appraisal must be done, etc.
I have gone about this by buying/assigning the note.
You seem to understand the process. It may be a little more complicated than a residential short, but it can be done.
Wee that basically only explains the components of a short sale not how one is done on a commercial deal. I am checking in because I just found a lead on a gas station behind in payments and would like to do a short sale on that if in fact possible. Any further insight is appreciated because there are no tenants as in a apartment building. Thanks and any feedback is appreciated and I mean no offense to the response on the current thread.
Thank you for your clarity, but once the owner is contacted what do you do from that pointl? I already have contact with the owner and deed to know the process to short a commercial deal, the business loan is my concern. I want to know what to do and what can the lender when in default to get the loan cured. I see you mentioned buy the note, how is that done and can the lender sell the note without the consent of the original borrower and notifying them of the procedure for a defaulted loan. I know this is a long post but I am lost on how they foreclose on a business loan for the purchase of a commercial property ?