On the outside, commercial foreclosures are much like residential foreclosures. However, there are some tips to consider and some differences to remember when considering buying a commercial foreclosure. When investigating options for office space Minneapolis, it makes sense to work with a realtor that specializes in commercial foreclosures and properties.
Property Types
When buying a business, it’s best to learn what’s included and what isn’t. Buying a business can involve paying for just the name, records and client list, or it can involve real estate and many other assets. There are major differences in the types of real estate involved in commercial foreclosures. Common examples can include:
Land for agricultural use. These foreclosures can consist of farmland that may support livestock, and they can also consist of homes, buildings and barns. Depending on the property’s zoning, size and other criteria, some properties can qualify as a commercial foreclosure or a residential loan.
Retail spaces: These are another kind of commercial foreclosure that’s often tied to sales that are open to the general public. Although most people think of retail spaces as large shopping centers, there are retail establishments to be bought in smaller towns and out-of-the-way parts of cities.
Office spaces: Doctors, attorneys, accountants and other providers often need minneapolis office space for rent, which is typically included when practices are sold. However, office space might not be offered in a commercial foreclosure if the owner is retired or is a sole proprietor.
Industrial space: Business owners who make products to sell to other businesses often use land that’s zoned for industrial use. These sales may consist of large factories, or they may be small buildings that are ideal for sole proprietorships.
Tips for Buying a Commercial Foreclosure
When considering investing in a commercial foreclosure, verify that the zoning meets the needs of the business. While it’s possible to be granted a variance, they’re far from assured. Buyers should also learn about the benefits of, and limits to, financing. Some properties may qualify either as a residential or commercial foreclosure, and a consultation with a realtor may help the buyer determine which type of financing meets their needs. Commercial foreclosures are usually sold as-is, and buyers should practice due diligence when getting inspections and valuations.
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