The constantly evolving nature of the COVID-19 pandemic has proven to be a massive challenge for commercial real estate investors. Real estate investors must remain cautious when assessing new opportunities, especially when it comes to fix-and-flip commercial properties due to uncertain business and economic conditions.
While many investors have started focusing on long-term investments in commercial properties, some plan to make the best out of the worst situation by option for a fix-and-flip route to earn substantial profits over a short period. It might have become a bit more challenging and risky option, but the rewards are worth it.
Are you planning to fix-and-flip commercial properties in the COVID-19 era? Here’s a quick and easy guide to help you get started:
How to Fix-And-Flip Commercial Properties in the COVID-19 Era?
Let’s start with the basics: demand and supply. Over the last months, we’ve seen a decline in the demand for commercial properties as many US businesses experienced a sharp decrease in profits and even sustained losses.
However, things are coming back to normalcy, and we can expect a surge in demand for commercial properties in the upcoming months.
The supply of commercial properties increased due to tenants vacating the spaces, but delays in construction of new properties later offset it. At the same time, many investors bought a piece in commercial properties to hedge their bets last year.
The supply will surge this year, but things won’t be the same. Many businesses are planning to adopt remote working practices for the foreseeable future.
Companies are looking for small office spaces to save lease payments. Investors who plan to fix-and-flip commercial properties in the COVID-19 era can fill the void by providing renovated workspaces that offer commercial tenants excellent value.
The potential of fix-and-flip projects will be dependent on how coronavirus impacts the respective local market, but modern and renovated workspaces priced competitively are expected to sell like a hotcake and provide high ROI to investors.
A big challenge for investors is finding the right commercial fix-and-flip properties that can be converted into a functional and spacious workspace to maximize their returns. The shorter properties stay on the market; the higher profit margins will become.
Of course, we oversimplified the fix-and-flop route to help you understand the potential. From finding the right contractor to brokering and financing a deal, there are many facets you need to consider before you jump the gun.
Global Capital Partners Fund is a leading private lender that offers a wide range of hard money loans in Fort Worth, TX, and many cities across the US. If you’re seeking financing for a flip-and-fix commercial deal, you can discuss your options with their professional underwriters. For more details, call at +1-800-514-7350, or visit their website.