Tips for Building Owners in Financial Trouble Who Are Looking to Sell

Published on July 10, 2020
building owners sell property

What Are the Benefits of Selling Commercial Real Estate to a Local Cash Buyer

Building owners suffering financial struggles will enjoy many benefits from selling their property to a local well-capitalized firm. 

  • All cash transaction: there’s no slowdown in the buyer getting approved through an arduous bank approval process for a loan to purchase your property. Seeking a loan can also stop a real estate transaction entirely if the buyer’s bank does not come through.
  • Fair value based on expenses and risks: avoid the back and forth of negotiation. RCA’s team is skilled at assessing a property’s value based on current expenses, risks, and current leasing situations. This enables them to place a fair offer and get you cash faster.
  • Fast and easy process: selling directly to a well funded local real estate investment firm means no time wasted looking for a realtor, taking photos, disclosing tenant lease information, discussing the property with potential buyers, reviewing offers, etc. Instead, you go directly to the buyer for an incredibly smooth and easy commercial real estate transaction.
  • Avoid realtor fees: listing a property through a commercial real estate agent means paying that realtor a percentage of the sale price, which is often tens of thousands of dollars. If you’re already experiencing financial struggles, you don’t want to pay out such enormous fees just to sell off the property.
  • Find an investor that’s right for your property: RCA is extremely well funded and equally prepared for the right properties to come its way. So you can know that your commercial or multi-family building is going to people who know how to manage it effectively to ensure its long-term success.
  • Investment team purchases your property as-is: you won’t have to go through the timely and costly process of fixing up the building to list and sell it. So long as you disclose any issues with it, we can and will work with you to purchase it as-is.
  • Won’t disrupt tenants or agreements: you’ve built a relationship with your tenants and made agreements to allow them to lease your space. You want to know that when you sell, your tenants are in good hands. A local owner operator is not looking to disrupt those tenants in any way but looking to build upon those relationships and opportunities.

Why Does a Local Real Estate Investment Firm Want My Building?

commercial real estate

Real estate investment firms help its investors find stable, valuable ways to grow their assets. One such tactic is through commercial real estate. With proven strategies for building management within a specific size or vertical, these property investment groups can begin to restructure real estate assets helping to realize overlooked areas of profitability of your commercial real estate asset.

The key is finding a local real estate investment firm with an interest in your type of building.

For example, Redwood Capital Advisors looks for buildings priced between $50,000 and $5,000,000 within the multifamily and mixed-use property category.

How Building Owners Can Sell a Commercial Property Fast

If you’re late on loan payments to the bank or owe back taxes on your property, you need to sell the property quickly while avoiding taking a loss on it. Only a handful of commercial real estate investment firms can help move this process along quickly and can even work directly with your bank in case of a short sale situation.

And because this select group has the ability to purchase all-cash, your transaction can be complete before your next loan payment comes due, which is great news for building owners who are currently struggling to get by. 

How to Find a Commercial Real Estate Cash Buyer

Research commercial real estate investors near you. And if you don’t find anyone you like, expand your search. Redwood Capital Advisors offers all cash commercial real estate transactions through its wholly-owned subsidiary Century Ridge Capital Partners, LLC.

Once you find a cash buyer, reach out to learn more about what they can offer and what their purchasing process is. The more you know, the better, informed decision you can make about how and when to sell your commercial real estate.

commercial real estate

What Are My Other Commercial Real Estate Selling Options?

If you’re still unsure that working with a local real estate owner-operator is right for you, there are other options for selling your commercial real estate. However, be aware that the other options have a much longer sales cycle.

  1. Hire a commercial real estate broker (real estate agent): brokers know how to make properties marketable and interesting to potential buyers. They can work with you to determine what repairs or updates to make to the building to make it attractive to buyers. Plus, brokers have access to attorneys, appraisers, photographers, surveyors, marketing professionals, title agents and every other professionals you might need to sell your property. The downside to hiring a real estate agent for a commercial property is that you have to pay them a minimum of five percent of the sale for their services, which might not be realistic for you in your financial situation. Additionally, traditional commercial real estate transactions like this take a great deal of time so you’ll need to be patient with selling your property.
  2. Use a for sale by owner (FSBO) model: sell the property on your own with a for sale by owner model and online listings you create. Because there are no experts involved in this process, you’ll keep all the proceeds of the sale without paying an agent, but you also have to do all the work associated with selling it and may be taken advantage of. You will need to hire your own attorneys to draft the paperwork and ensure you get a fair offer. Marketing your for-sale property alone will be challenging. This commercial real estate option will take the longest and be the most work for you out of all your sale options.

Get cash quickly and avoid long sales cycles for your commercial real estate by working with Redwood Capital Advisors. Our unique access to quick capital enables us to pay cash for your property in a quick and easy transaction. Learn more about our Commercial Real Estate Services and how you can sell your property for cash now.

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