A chicken little moment
Saturday, October 4th, 2008
One of my clients - an investor and owner of a commercial mortgage brokerage business - confessed earlier this week that he was having a chicken little moment.
Offers he’d made earlier in the year to buy product that had been turned down - he’d been third or fourth in the bidding sometimes - were now coming back to him. He had more opportunities than he knew what to do with.
It was exciting at first, until he realized there were no lenders out there to finance the opportunities. Loans offered last week were no longer on the table. Many of his sophisticated equity partners were “on the sideline” for now.
It’s time for brokers and buyers to go where the market is taking them — and that is to distressed assets. My primary focus is on talking to the most motivated sellers: cash hungry sale leaseback prospects, lenders with troubled loans or REO to sell quickly at a discount, troubled owners, and the like.
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