By now just about everyone has heard about how bad the real estate market is, right? Well, if you really think about it, most of what you have heard has been related to homes people are losing! More importantly, residential property in general.

Have you ever heard the saying that the commercial market follows the residential market? If you have great, you know what I am talking about. If not, trust me because you are about to see the biggest commercial investment opportunity this country has ever seen! That is no joke! 

Commercial REO’s are about to explode. Just like residential REO’s have flooded the market we are on the verge of wave after wave of commercial properties at rock bottom prices. 

According to a recent post on Reuters, the amount of commercial loans that are delinquent 3 or more months has increased $1.66 billion dollars in just the last month. This is just a small indication of what is about to come.

Show what does this mean?

If your a real estate investor and you want to hit the big time, meaning commercial real estate investing, your big day is about here! Don’t get me wrong you need to understand what you are doing and that is something we will discuss in other postings. But looking at it from a 30,000 foot view opportunity is about to hit! 

Not sure how you can profit from Commercial REO property? 

The answer here is actually quite simple. Just about all the ways you have heard about and learned regarding to residential property also apply to commercial property. Meaning you will be able to do short sale flips, foreclosure investing, subject to, loan modifications and a whole lot more. In fact, in some aspects negotiating a deal in the commercial world is a lot easier than in the residential world. You might be thing "Yea Right" but its true. Here is why. Almost all residential loans are sold on the secondary market and as a result the bank you think the loan is through doesn’t even own the loan. They just service the loan. So with a short sale you are dealing with layers of intermediaries including the bank to get the true investor to agree to your offer.

In many cases and especially with smaller bank commercial loans, the bank who made that loan holds it for the long term. This is often because most commercial loans have ballon payments after 5, 7, and sometimes 15 years. As a result the loan actually stays with the bank who loaned the money and therefore it is a lot easier for you to speak directly with the decision makers! 

Not bad, you think! 

All I can tell you right now is that the purpose of this post is just to open your eyes to the opportunities that are on their way. We will look at specifics as they arise! 

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