In 2008, Commercial Equity Solutions (CES) began to negotiate with lenders at the request of their clients who own commercial real estate. Their commercial property (or real estate portfolio) was under attack.
With the economic fallout most investment real estate began to experience higher and higher vacancy rates. The owners were forced to lower leasing rates to retain quality tenants or had lost the less credit worthy tenants altogether. The Commercial Real Estate (CRE) investors were no longer able to sustain the debt service and asked CES to contact their bank to find a solution to their dilemma.
After hundreds of client interviews, property reviews and confidential bank negotiations, CES has utilized the applied theory of consultation and negotiation in commercial real estate workouts to observe a significant void in the current market: knowing where and how to acquire commercial real estate at its maximum profit delta.
This discovery has expanded the focus of our commercial real estate consulting practice from strictly a property owner as client to an acquisition investor as client perspective.
By helping property owners achieve a significantly discounted loan payoff opportunity, they are assisting the banks in removing non-performing debt from their books. This creates an opportunity for an investment client and allows the property owner to reset the basis of their property, setting the table for investors to acquire, or become part of, stable cash flowing real estate throughout the United States.
Of course this all happens prior to foreclosure, before these real estate opportunities are known to the general public.
Most CRE investors understand that once a property has been foreclosed upon, the bank is not going to be as amiable in selling at the best possible price. Additionally, the previous owner may have been the best financial steward that property has seen, but due to outside forces, not their management skills, the property lost its sustainability.
Now as a bank owned property, it will lose further value as tenants flee to a more secure or better priced property. Acquiring or becoming an equity partner prior to these negative consequences is where CES has answered investor’s liquidity and risk concerns.
The maximization of cash flow, sustainability, risk reduction, and profitability (not to mention the altruistic aspects of assisting a neighborhood or an entire community to take a step back towards stabilization and security), is the sweet spot most investors are looking for.
CES has now taken the next step by releasing an investor driven and directed marketing approach to acquire the specific property type, the location, and risk level investors are looking for. This program allows investors to initiate their chosen market and demographics and have the first look at properties that meet these criteria.
This program provides targeted properties negotiated through the CES system that will maximize investor profits in distressed commercial real estate. Contact a member of our team today to find out how you can leverage our experience and contacts to expand your commercial real estate portfolio.
Larry Larsen
Director of Client Services
Commercial Equity Solutions, LLC
888-807-2786
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