BluegrassForeclosure.com

Sometimes so much time and resources are spent on residential foreclosures that we forget there is a commercial side as well.  Look around any community and review what kind and how much commercial property is available for lease.  There is a glut of commercial property available.

Just as residential property goes into foreclosure, so can commercial.  This includes rentals, duplexes, triplexes, fourplexes, retail centers, office buildings, gas stations, and anything else you can think of.  Business owners are struggling to make rent payments as well as mortgage payments.  Often the bank will work with a business owner if they can.  However, these properties go into foreclosure as well.

Sometimes these can even be better investment opportunities for the investor for several reasons.

1.  It is already zoned commercial, so you don’t have to go in front of planning and zoning to fight it out with them.

2.  Businesses are often found in prime locations, along main thoroughfares, in downtown business districts and such.

3.  You may have an instant tenant by lease/renting it back to the business owner at more favorable terms.

4.  You could be eligible for tax breaks from local municipalities as local governments want businesses to thrive and pay taxes.

Don’t overlook these valuable options.  It may be worth a second look.  For more assistance, click here.

The tri-state region of Kentucky, Indiana, and Ohio is nestled right in the middle of the rust-belt since each one relied heavily on the car industry and other big manufacturers.

Ohio has seen a decline in the foreclosure rate, but among the three it still has the highest rate of foreclosures over the past 12 months.  From July 2008 – June 2009, Ohio saw approximately 142,000 foreclosures, Indiana about 61,000 and Kentucky with about 10,000, with about 213,000 overall for this region.  See here for more details.

With so many properties in foreclosure and the banks getting most of these back, who really gets hurt?  Well, of course, the situation is pretty complex.

First, the borrower loses a house and does not realize the American dream of home ownership.

Second, the bank loses its investment and gets back a home in usually poor condition.

Third, the municipality is often left to mow the yard, do general upkeep simply to keep vandals out and to keep the home is some sort of repair.  Municipalities also lose tax revenue.  Thereby, taxes go up as they seek to get some of their money back.

Fourth, the neighborhoods around a foreclosed property immediately lost 2 – 5% of their value.

Fifth, crime goes up, vandals move in, and individuals come in that have no stake to improve their surroundings.

If an investor can step in, buy a foreclosed piece of property, put some money into fixing it up and then rent or sell it, everyone comes out better.

There is no better time than now to get into foreclosure sale investments.