How to Generate Business With Property Debt Research
Getting the most out of your commercial real estate investments requires more than just smart purchases. It requires research and lead generation. You can’t always wait for the right property to hit the market. When an area is hot and you are looking for a certain kind of property, knowing how to research the property debt attached to it can help you make better pitches, leading to more successful purchases and the opportunity to buy properties other investors don’t have on their radar.
The first thing to remember when using these strategies is that you won’t be alone. While you’re leaving the pack behind with these new methods of building a business, you’re starting to compete with a more experienced tier of investors, so you can expect there to be some competition for your properties if you wait too long to make sure a location is a good investment. You need to move quickly, which means knowing how to identify when an area is about to erupt into a hot topic among investors.
When buying commercial real estate, there are two ways to gain access to the information on a property’s outstanding liens and debts. The first and oldest method is to travel to the county clerk’s office and request that information for specific properties. This can be time-consuming because not every county has that information indexed electronically for easy recall, so you may have to apply and wait for the information to be sent to you. The second method is to use an online property debt research service. They typically have small fees, but they let you get the information more quickly.
Once you know how much debt a property has, you can identify the price points that might appeal to an owner if you pitch them on selling the property to get clear. If your investment method is based less on acquisition and more on underwriting debt for other investors, it also serves as an opportunity to learn which property owners in the area might be open to refinancing for either debt consolidation or as a way of acquiring working capital.
Discovering new opportunities in the marketplace is one of the most important steps you can take toward becoming a successful investor, whether you are buying commercial real estate or assisting those who wish to do so. There are plenty of opportunities, and some investors even move from directly investing in properties to sponsoring others through equity investment and debt investment. Look for your opportunities carefully to find your path to the best returns in your local market.