The Death of a Commercial Real Estate Deal (Loopnet)

Do you want to move up from making a few thousand dollars per deal to exploding your income in the commercial market. If you have ever thought about entering commercial Real Estate there has never been a better time to do it!

How in the world am I going to do a BIG Commercial Real Estate deal? (sub header)

I know what some of you are thinking, how in the world am I going to do a BIG Commercial Real Estate deal when I am struggling to get my rehabs, shortsales and subject to’s done on a residential level? I will get into that briefly but just let me say now that if you can get a simple single family deal done in this market, you can absolutely get a commercial real estate deal done. Don’t let the dollar amount scare you, it’s all about adding a few commas and a few more zero’s.

I realize that I’m making it sound too easy, but with a little bit of training it’s actually pretty simple. Before we get into the subject too far, I want to tell you about the fastest way to have a commercial real estate CASH buyer stop a deal dead in it’s tracks, it’s called “Loopnet”!

The Fastest Way to Kill a Commercial Real Estate Deal

I’m sure you know what Loopnet is and if you don’t, it’s a large website for Real Estate Brokers and sellers to post their deals where lots of others have the option to see it.

The challenge with Loopnet, and many other similar sights, is that with the large number of “Cash” buyers that are out there on the hunt for “Great” deals. These cash buyers are using sites like LN to make sure that the deal they are being presented with is NOT on any of these Big National Broker websites. Puzzling I know, “why” you ask, it’s a little thing called EXCLUSIVITY!

Put yourself in the cash buyers shoes for just a minute, remember the old “Golden Rule” meaning “the one with the gold makes the rules”. If you have cash, and Cash is KING, then you want to invest your precious cash wisely. You also want to have the feeling that if someone brings you a deal to analyze, you want to make sure that you're not going to be in some sort of bidding war or buying frenzy.

A Solid Commercial Real Estate Deal, Until They Found it On Loopnet…

Just this last week a multi-family deal was presented to me in Fresno CA and it looked to be a solid deal, bringing in a respectable 11CAP (capitalization rate). My office knew that it was on Loopnet but it was suggested by one of our top people to move forward with it and present it to our cash buyer hot on the trail of a “killer deal”. At first glance the buyer submitted an LOI (letter of Intent) and signed our MFA (Master Fee Agreement) and was moving toward a contract and 7 day close UNTIL… the dreaded action…yes he “googled” the address only to find the LN listing pop up on the 2nd page. Just as suspected the deal was dropped dead in its tracks.

Don’t let this happen to you, we have tested it more times than I care to admit. Every legitimate cash buyer that I know will drop a deal immediately if it is a Loopnet listing. My suggestion to you is, that any commercial real estate deals that you analyze for the purpose of presenting to your cash buyers is first do a quick search to make sure that it is not a nationally marketed deal. If it is, then RUN the other way! Well, at least check with your buyers or my office to make sure that it is a do-able deal before spending too much time with it.

You Don’t Have to Be “The Don” to Invest in Commercial Real Estate

Now how do YOU get started in the commercial arena without being “The Don” (Trumpster)? It’s simple, “commercial wholesaling” or even easier become a commercial RE “Bird Dog”. I am currently looking for Commercial Real Estate “Bird Dogs” to fill the pipelines of the “CASH BUYERS” that we currently have in queue.

In my upcoming posts I will discuss in more detail the “HOT PROPERTIES” that we are looking for and how YOU can get started immediately! If your saying to yourself, “I don’t know any mult-million dollar buyers” then I will show you how to work with my company and put checks in your pocket right away! If your saying to yourself “show me how to create a buyers list then get out of my way” then more power to you! Stay connected with me here and drop me a quick comment whether you love or hate my opinions just drop me a quick note!

To your Success,

David Montelongo

Real Estate Investor | Mentor