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Off Market (Not Listed) Commercial Real Estate Deals

Big investor firms and institutional buyers don’t like competition because competition drives the price up and this does not help their bottom line. Also, if they are not feeling exclusive then they don’t have a leverage going into the deal. Leverage is the key for these buyers. Without it, they know that they just waste their time.

For every listed commercial property, there is almost 6-8 off market properties out there. These owners are not thinking of selling their properties and they are not in that state of mind for many different reasons. Maybe timing is not right, or maybe they just don’t want to sell it dirt cheap giving the market conditions that we are in. Or, perhaps, they don’t want their employees to know that the business is for sale, and start looking for job else where. Therefore, losing good key employees is not a good start. Especially, in the early stages of selling your property and business.

Some of these sellers are looking for a way out but don’t know how to, or which brokerage to contact to. Because in their mind, all commercial real estate brokerages are the same. They are going to list your property and sit on it until a buyer comes along. Also, signing a listing agreement that they can not even get out off until it expires, with a hefty commission percentage is not just what these sellers have in mind. So they just sit on these properties and do nothing. Until someone creative comes up to them and give them all the solutions they have been looking for months or years.

Is that someone you?

Can you really deliver all these goodies without listing their property for sale in the major listing services?

Can you really find them a buyer without letting any of their employees know that business is for sale?

Can you do all of these things for a reasonable fee without tying them up in a long term listing contract?

If you have answered “YES” to the questions above, then you are the right broker with unlimited income potential in this field.

You have to offer something unique that has not been offered by others, especially big players in the commercial real estate market. Because this is the only thing that will make you stand out from the crowd. Let’s not forget that you can not match service and expertise level of big commercial real estate brokerages. Nor, you can convince these sellers to pay you a hefty commission like big brokerages. That being said, big brokerages have so much on their plate that they will not have time for personalizing their service for most of those sellers.

Therefore, this is where you come in and close the deal. You offer such an unique service that no big brokerages offer out there. In fact, not even many small brokerage firms offer this.

For more information and submitting your commercial properties to be sold “Off Market”, please Contact Us or comment below.

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How Can You Tell A Seller Is Serious About Selling Their Commercial Property?

Serious Sellers vs. Time Wasters

Before we can represent the seller officially, we, as brokers, have to make sure that we are on the same page and everything is in place. We, with the sellers, need to have our expectations aligned if this is going to be a successful representation.

If the seller’s expectations are too high for the property’s market area, or are unreasonable, it’s a red flag. Don’t even bother working with that seller, just walk away. You will save yourself a lot of time and frustration.

Let’s go into detail what we need from our sellers for a successful transaction and representation. If a seller is not going to cooperate with you, there is no point in moving forward. I mentioned how to differentiate yourself as an Off Market commercial broker for this niche market in my previous article. But now, we also look for certain features in sellers to determine whether he/she is the right seller to work with. This is a two way street and the seller also has to play his part to make it happen.

Ask your seller to provide you due diligence documents to present his property to a potential buyer. If for any reason the seller hesitates to provide them, then he is not a serious seller. Any serious seller should know that he has to provide this information. You, as a broker, can’t sell a multi million dollar property without a due diligence package. This is why it is so important to align expectations. If the seller is serious, then expect these documents:

Seller To Provide:

  • A narrative relating to the property
  • YTD actual financials (If property in operation)
  • At least last year’s actual financials, if applicable
  • Projected P&L of the fiscal year
  • Detailed Rent Rolls, if applicable (Not applicable to hotels or vacant properties)
  • At least a 5 year financial pro-forma (If past financials are not available)
  • Site plan, building layout, plus building specifications (Whatever available)
  • Parcel map of the property, if applicable & location/address
  • Copy of the basic lease agreement utilized with tenants (This is an unfilled version, not each tenant’s lease agreement)
  • Occupancy numbers for non-hotel property types
  • STR Report for  hotels
  • Asking price of the property

It is OK if the seller does not have all of these documents right away. As a broker, you just need to know that he/she is willing to provide them. You don’t want to spend a lot of time on a deal that goes no where, especially if it is an Off Market deal. It is the nature of an Off Market deal to work with a small and select group of buyers. Without an adequate information package, you are shooting yourself in the foot by presenting an unfinished product. This is bad for your own reputation, of course, if you want those buyers to work with you in the future.

We focus and specialize in Off Market commercial real estate in Chicago and nationwide. We are experts in filling the void of multi-national and local real estate brokerage companies for Off Market commercial real estate. If you would like to sell your property without listing it, discover how Creative Commercial Brokers can help you reach your real estate goals in Chicagoland and nationwide.

As commercial real estate brokers in Chicago, we have built solid relationships with many qualified buyers looking for well performing assets nationwide.

We welcome your business.

Comment below or Contact Us for any questions you may have.

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