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Things to Consider When Investing in Foreclosed Commercial Real Estate in Denver

February 20, 2019

There was a time when investing foreclosed commercial real estate in Denver, Aurora, Littleton and surrounds meant nothing but a headache. After all, investing run down buildings in less-than-desirable neighborhoods that are in desperate need of renovation is a terrific strategy to lose money, not make it. However, it’s safe to say that times are changing now. Across greater Denver, there are a wide variety of desirable commercial properties facing foreclosure that represent sound investment opportunities for investors and developers alike.

The reasons for this change are multi-faceted. Ten years ago, commercial lenders rarely dealt with commercial foreclosures. Now, they're relatively commonplace. The skyrocketing rate of commercial real estate mortgage defaults has required that banks become more flexible in order to get non-performing and/or unpaid loans off their books. By following these simple tips, and by relying on the expert commercial real estate team here at Elevation Group, you can wisely purchase a commercial investment property that’s free of headaches and red tape. 

Establish Contacts

Some of the most promising commercial real estate transactions come through properties sold through short sale. A short sale is a sale of real estate in which all of the proceeds from the property sale fall short of the debts secured by liens against the property. In circumstances such as these, sale can be made if all lien holders agree to accept less than the amount owed on the debt. The trouble with short sale commercial property transactions in and around Denver is that they’re not easy to come by. Establishing contacts at mortgage companies such as Elevation Group, and researching courthouse listing and legal ads can give you a heads up on such sales. 

Exercise Patience

One of the key differences between investing in commercial real estate and investing in residential real estate is that the process takes significantly more time. Expansions and renovations of foreclosed commercial properties can take months as opposed to weeks. Additionally, finding suitable tenants for an investment property is far more arduous that finding residential tenants. Partners like Elevation Group can give you an advantage when investing in commercial real estate in and around Denver because of our years of experience within this market.

Do Your Research

It may seem obvious, but many new commercial real estate investors fail to truly understand the demographics and trends in the Denver neighborhood they are planning on investing in. Whether you're searching for a commercial condominium in Park Hill, a retail space in the River North Art District, or a mixed-use development in Cherry Creek, understanding the history, demographics and cultural trends of the area is paramount in any commercial real estate venture.

At Elevation Group, our team prides itself on the personalized attention and dedication we provide each of our clients throughout the entire commercial real estate sale or purchase process. If you're interested in investing in commercial real estate in and around Denver, or if your interested in purchasing a property for your own business endeavor, Elevation Group is proud to be one of the region's leaders in commercial real estate sales. Contact us today to discuss your purchase plans and receive the most reliable and up-to-date information on the Denver commercial real estate market.