Those who look at commercial properties then consider buying it how do you locate the owner and contact them to make an offer? Also if you don’t know the financials beforehand what makes you even consider the property?
[{"id": "fy1f1jv", "text": "It needs to be on the market. Loopnet\n\nYes, you need to sign NDA, then you show you have the means($) ,a d you are credit worthy.\n\nLocation, location and location. It is not meant for inexperienced investors.", "replies": [{"id": "fy1jsh9", "text": "It doesn\u2019t need to be on the market. Many deals on the market are not deals. \n\nAlso it\u2019s simple to obtain the owner through a tax records search, LLC search, and a few googles.", "replies": [{"id": "fy1kwyk", "text": "Ok what about the financials. \n\nFor example, would an investor just randomly walk down the street see a multi family apartment building and think it\u2019s looks cool then immediately start tracking down the owner. \n\nIf they don\u2019t know the property\u2019s financials how would they even know if the deal makes sense? Or do they just randomly look at properties while travelling and cold call owners with the hope of eventually finding a good deal?", "replies": [{"id": "fy2t8ik", "text": "Looking cool does not matter, running a model of the financials does. \n\nYou can do this in house", "replies": [{"id": "fy2toir", "text": "I know financials matter my point is if I see a random property, find and contact the owner and tell them I\u2019m interested and want to view the financials I doubt they would just hand me the t3, t12 etc like that.\n\nSo without yet seeing the financials why does an investor even bother viewing a property if they don\u2019t even know whether they could get a good return.", "replies": [{"id": "fy2vpow", "text": "When you ask for financials, are you sending yours over??", "replies": [{"id": "fy2w9kh", "text": "Well if I have a preapproval letter from a lender I can show it to them to let them know I qualify to borrow a certain amount etc so financing shouldn\u2019t be an issue etc. Idk what else I\u2019ll need but if showing financials is a norm then sure why not.", "replies": [{"id": "fy2yb47", "text": "If your getting the introductions you are looking for, it's worth hiring a broker to represent you, especially it it's your first go.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fy1l04b", "text": "The owner of commercial properties gets at least 1 card, imitated hand written letter every couple of weeks. If they get more then properties are more desirable. They also get same from realtors to list. Studies have shown there is a huge variance selling it direct vs through a brokerage. Sellers want multiple offers to counter back to get top price.", "replies": [], "depth": 3}], "depth": 2}, {"id": "fy1kwmp", "text": "Ok what about the financials. \n\nFor example, would an investor just randomly walk down the street see a multi family apartment building and think it\u2019s looks cool then immediately start tracking down the owner. \n\nIf they don\u2019t know the property\u2019s financials how would they even know if the deal makes sense? Or do they just randomly look at properties while travelling and cold call owners with the hope of eventually finding a good deal?", "replies": [{"id": "fy1mqxh", "text": "Have several deals going right now. I am afraid no owner will share their financials only after your business reference is obtained, credit reference, banking info and your have the means. That is how business inquires works.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fy1f7od", "text": "Some thoughts for US, non-institutional (think big and expensive, these are traded differently): First, you'll want to locate the \"true\" owner (not 123 Main Street, LLC)  if possible. An obvious place to start is a google search using the address or management company if known as a defined term (\" \") I'd then check the tax records which are usually found on the county assessors website, make sure you get the parcel ID and a copy of the actual tax bills. If it doesn't contain a persons name or company try searching the exact address where the tax bill is sent which may provide some clues. This might not be of help if the bill is sent to an accountant or [registered agent](https://ct.wolterskluwer.com/resource-center/articles/what-is-a-registered-agent). A search of the entity (123 main street, LLC) can also be performed online in most states, although it might not provide much. As a last resort you could try looking at anything recorded against the deed, as the loans might contain personal guarantees. \n\nHope this helps!", "replies": [{"id": "fy1kvji", "text": "Ok what about the financials. \n\nFor example, would an investor just randomly walk down the street see a multi family apartment building and think it\u2019s looks cool then immediately start tracking down the owner. \n\nIf they don\u2019t know the property\u2019s financials how would they even know if the deal makes sense? Or do they just randomly look at properties while travelling and cold call owners with the hope of eventually finding a good deal?", "replies": [{"id": "fy2d0n0", "text": "Let's start with the reason that the investor was looking into the property in the first place. If the investor has a feel for the market then some very broad assumptions could be made about pricing, the availability of financing, and reasonable returns. Maybe its a 4-unit apartment in a beach community which could be priced by looking at recent sales (comp method, not the norm for commercial except for very tight markets), gross revenue (income approach, this is standard and usually expressed in a capitalization rate), or the cost of building (replacement value, not common). Looking into available listings (especially properties that sold), speaking to a lender, and researching current rate rates/concessions/terms will all help with the income approach.", "replies": [], "depth": 3}, {"id": "fy2d6hw", "text": "So you don\u2019t only want to reach out to the owner unsolicited you want to also receive the property financials first?  \n\nTo find the property owner I would look up the property tax records.  That usually gets you to the right spot or at least a person who can point you in the right direction.  From there you are going to have to give them a reason to talk to you. Maybe an offer on a cap rate basis? Or if you have an idea of the occupancy and size through out a cash number.  From there you can request the financials from the owner.  To be clear nobody is going to hand over their financials to someone how comes up and asks off the street without a good reason and also the proof that they are actually able to execute on the transaction.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fy1muf8", "text": "Hire a respected and top performer CRE broker who knows your market and the asset class you are interested. Walking by a property and wanting to buy it by its looks is generally a bad idea. An experienced broker will know the details of most of the assets in their market and specialisation. Doing it by yourself without prior experience is a good path down a bad deal.", "replies": [], "depth": 1}, {"id": "fy7jphr", "text": "They make an offer with a buffer knowing the fundamentals of the market. If the owner entertains, they adjust the offer.", "replies": [], "depth": 1}]