Logistics of purchasing an occupied property for owner-user objective

There are a few properties I might be interested in pursuing, but they all have established tenants - some with multi-year leases.
How do I go about acquiring such a property? Or should I just keep looking?
In Buying Property - Asked by Jonathan K. - Jun 21, 2009
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Answer(s)

Paul S.
Broker/Agent
Glendora, CA

If the tenants have leases they are good to stay untill the lease is up. Given our economic times however there may be a tanant that would welcome getting out of the lease. There is no restriction on buying the property but occupancy will be subject to a tenants lease rights. Also if the tenant is behind in rent (which many are) that may give rise to a breach and the tenancy can be ended.

Jun 21, 2009
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Cutting Edge R.
Broker/Agent
Decatur, IL

Keep Looking- My town has several vacant commercial buildings for sale. Some tenants will be difficult to evict. Even vacant ones may have long term former tenants locked into a contract forcing them to pay rent even though they are not there anymore- and they are trapped because they can not sublet the building without the owners approval, so the owner has no true motivation to sell.
Kathy F at rocksndogs@msn.com

Jun 21, 2009
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Robert W.
Broker/Agent
Akron, OH

I have spent much of my career as a buyer representative purchasing commercial properties (often occupied) for alternate uses by the new buyer. The first step is to gather as much information as possible. Who is the owner? Who is the tenant? How long has the tenant been there and how long including lease extension options, can they stay? Is the tenant successful? Are they delinquent on rent or otherwise in default? Could the tenant be interested in relocating or vacating -- even if monetary incentives are required? If you are planning to rent from the existing owner, will they be more interested in you and your deal than the current one in place? As you can see, it's never a simple process but with diligence and determination as well as patience and resources, it can be accomplished.

Jun 28, 2009
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