Short Sales for Commercial Real Estate
Thursday, January 29th, 2009
It’s coming to commercial real estate! Residential agents have been living in the world of short sales for some time. Now I’m involved in negotiating a few of them. In a short sale, the proposed purchase price falls short of the loan balance. That puts me in the middle of a negotiation among buyer, seller, and lender, trying to arrange a meeting of the minds all around.
I’m seeing slowly-increasing-willingness on the part of lenders to start discounting notes to get them off of their books. This will accelerate through 2009. This will also make for more opportunity plays for investors that want to buy these notes at a sizable discount with an eye toward hopefully foreclosing on the property or being paid off at par for a nice profit.
Did you like this post? Make sure to subscribe by entering your email at the right so that you get more every day!
