It’s understandable that some investors shy away from negotiating with a municipality or state about one or a group of properties. Some of the requests or bids come with strict requirements that not every hopeful applicant can meet.There are situations in which the offer is not attractive to potential buyers. Other times an interested potential buyer does not have the funding to purchase or rehab.
Meanwhile, the fact is that many owners of commercial buildings are seriously neglecting their properties. It’s a situation that creates problems for tenants, devalues properties, and, in some cases, invites crime. The City of Cincinnati is taking action on what it claims are more than 2,000 “problem” properties. Owners are going to be held accountable for neglecting repairs and necessary upgrades.
Real estate investors and developers that do their homework can create situations to approach current owners to help them avoid fines or costly repairs. Approaching a current owner with an offer to buy or partner on a building or project might generate a lower than ‘normal’ offer being accepted.
Let’s say that again. Just in Cincinnati, the City is going after more than 2,000 buildings. By the law of averages, some properties will be more attractive for fixing and holding or flipping than others. Investors and developers that do their homework have plenty of opportunities, whether currently doing business in the Cincinnati area or not.
Meanwhile, chances are other municipalities will be monitoring the amount of revenue Cincinnati raises from issuing fines, while getting improvements done improves the quality of their neighborhoods. Now is a great time to learn how to research these. My team and I are ready to help!
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