First you must research the traditional commercial markets. This may include Multi-Family, Office, Industrial, Retail and Land. Choose the most attractive market based on activity, barrier to entry, business potential and your interest in working in the market chosen.
Identify investors who own properties in the market you choose. These investors can be found in the public record. Prospect to find the investors who own more than one property in that market. Once you’ve identified property owners who own multiple properties contact them to find which of them are interested in buying more similar properties. Create a data base of likely multiple property buyers.
Next develop a list of properties which are not on the market but fit the investor profile for properties in your target market. Again, these properties are available in the public record. Contact the owners of prospective properties to find some owners who are willing to sell their properties. List the properties for sale. Exclusive listings are best.
Once you have an exclusive listing you can market the properties using traditional commercial real estate marketing plans.
and next best is to develop a data base of ‘off market’ properties. Off market properties are very attractive to some investors. They require some careful steps to market them.
I suggest you prepare a ‘blind profile’ of the properties. A blind profile lists the properties features and benefits including a financial profile but does not show the address nor any attributes which may allow a prospective buyer to identify the properties.
The blind profiles should be sent to the investor data base of people who are seeking to purchase more properties. Along with the blind profiles a non-disclosure form is submitted. The non-disclosure is to protect the owner of the property from the general public discovering that the property is for sale. Sellers often want to keep the tenants from finding out the property is for sale to ensure the tenants continue to stay in the property.
Once the prospective buyer signs the non-disclosure agreement for a specific property. You’re ready to submit a one party listing to the prospective seller. The seller reviews the one party listing and when signed is open to receiving an offer from your prospective buyer.
The seller provides the necessary property information and financial data to you so you can develop a ‘package’ for the prospective buyer. The seller may also provide you with an asking price for the property. Now it’s time to send the ‘package’ to the buyer.
Assuming the buyer is interested in purchasing the property a letter of intent or purchase offer is prepared by the buyer’s agent for submission to the prospective seller. The prospective seller responds to the offer by accepting or countering the offer.
When a ‘meeting of the minds’ is reached a definitive agreement is prepared representing the seller’s wants and the buyer’s wants. Escrow is opened and due diligence begins.
The due diligence period can vary from days to months and longer in some cases. During this time the buyer inspects the property and the financial documents to assure himself he wants to close and own the property for the price and terms agreed to in the definitive agreement.
The escrow agent sets a time and place to sign documents and the seller and buyer meet (usually separately) with the escrow agent and their respective agents. Documents are signed payments are made and the transaction is recorded as a public record.