Finding distressed landlords

[Lioneil Guevarra]

I'm looking to find small commercial complexes. how would someone go about finding these complexes from landlords would like to liquidate? I haven't decided on a specific market yet but actively searching for one.

[Mitch Messer]

Originally posted by @Lioneil Guevarra:

@Mitch Messer thanks for the welcome. Would you see this evictions cases more with certain types of properties. small multifamily, or larger complexes. Or I should better ask is the a particular pattern you've noticed from these distressed landlords?

The eviction legal process is invoked in landlord-tenant disputes of ALL kinds for ALL types of asset classes: single-family, multi-family, commercial, industrial, etc. Wherever there's a landlord not getting paid, there's likely an eviction lawsuit that has been filed against a tenant!

Regarding patterns, you first need to examine the data. For example, one of the red flags we often look for when pursuing tired single-family landlords is delayed filing of the lawsuit. Great landlords have a solid rent collection process and will file for eviction as quickly as possible; weak and tired landlords often wait months before finally filing, costing them significant time and money. The actual eviction filing document often indicates how many months behind the tenant is in rent, so we can go right after those landlords who clearly don't want to be in the rental business anymore!

Another red flag might be multi-family landlords who have had to file for eviction on the majority of units in a single complex within, say, the last 12 months. Now there's a landlord who is not making any money!

Certainly, the CDC moratorium on evictions has severely impacted this process, but I think the writing is on the wall that it is unlikely to be extended beyond June 30, 2021.

And when it does eventually expire, things will really start getting interesting!