Commercial Foreclosures

The Legendary "100 Million REO Portfolio Package" Is Real - And Ready for Cherry-Picking By REO Investors

2010-07-23T19:25:00.000-07:00

As of today, I now have access to the legendary "$100 million REO foreclosure portfolios, both residential and commercial properties typically made available to only the elite hedge funds and institutional investors that have "inside connections" of some kind.

As a result, I am looking for investors seeking access to a portfolio of REO investment properties in this $100 million price range with highrly customized specifications on the exact location and property type desired.

You (the investor) name your price range, the property condition, the specific area codes, any property specifications, and we'll provide you with a resource to cherry-pick these properties at REALISTIC mega-discounts off the current broker price opinion for the bulk purchase. Through my "priority access" association with this group, I can provide to the investor prices and terms that are not available to the general public via the relationship with www.CommercialREOS.com

Prospective REO investors and investor groups will be required to sign a "Letter of Intent" indicating your price point, location, condition, etc., and the type of product you want to buy and how much of it to take down PER MONTH which basically acts a starting point to initiate the process. Along with the LOI, a current "hard proof of funds" statement from your bank is also required. Due to the nature of the business, both these documents are required before moving forward.

We also have REO opportunities for the smaller investor or investor group in the $10 million range, albeit with a lesser discount. This is a real deal opportunity for the REALISTIC investor group that's looking to capitalize on some amazing discounts in today's national foreclosure market.

What is "realistic"? We are currently working with investors in California who are buying a typical $100 million portfolio at .58 cents on the dollar and also with smaller groups selling them $10 million REO portfolios at .68 cents on the dollar. That's the marketplace folks, and anyone who thinks they can do better will just have to keep looking, because it's just not out there - except in urban legend land.

If you're a serious sophisticated investor or a member of an investment group looking to take down a $100 million custom REO portfolio and the above discounted values are attractive to you, please contact me at 702-336-5554 or email ron@commercialREOs.com for more details.

Bank Failing? Blame the Regulators!

2010-07-14T10:32:00.001-07:00

McIntosh Commercial Bank has lost so much money on loans that, by one measure, it was financially the weakest of Georgia's roughly 300 banks. So rather than look within for insights as to why the bank has failed miserably, representatives are actually complaining that federal regulators were being overzealous in closing banks.

Here's probably a more realistic explanation: they loaned too much money to developers, builders, and buyers and when the market tanked, so did they - just like countless others.

Greed causes the downfall of many. And it seems blame is very commonplace when things go wrong.

Who Can You Believe These Days Regarding Commercial Real Estate?

2010-07-13T11:41:00.000-07:00

Do newspapers, TV, and the media in general report what's REALLY going on in the news, specifically commercial real estate? It's hard to believe what you read some times when the authors of these newsworthy pieces are clearly misssing out on key signals and indicators that portend exactly the opposite of what they're saying.

Take today's story in the Las Vegas Review Journal, "Commercial real estate prices reaching one third 2007 levels". Here's a few talking points from the article:

"I think we're pretty close to the bottom because once a bank gets a property back, you can't go any lower than that"
"The most common trend in the industrial market continues to be the lasting expectation among buyers and tenants for reduced sales prices and lease rates"
"Both residential and commercial transactions are slowly starting to pick up compared with the last couple of years"
"The ones that take the jump now are poised to make the most profit when things turn around."
"There continues to be strong demand for quality properties."
"We're getting a lot of activity, which is going in the right direction"

Remember these comments were taken directly from a major media outlet, not from an agent's website or someone's real estate blog. Let's analyze each point a bit further:

"I think we're pretty close to the bottom because once a bank gets a property back, you can't go any lower than that" - Oh we can, and we will. If you think the commercial market is bad now, wait until the end of the year when the banks move from their current "denial" state into "acceptance" of the problem and start taking massive action to unload properties.

"The most common trend in the industrial market continues to be the lasting expectation among buyers and tenants for reduced sales prices and lease rates" - The most common trend is ALL of real estate is that the prices will continue to fall until job growth prospects get better. The focus should be on job creation - until that happens, the real estate market will continue to fall. And I don't see it happening (for real at least, although you can probably find examples of news articles massaging the facts to make it seem so in the short term.

"Both residential and commercial transactions are slowly starting to pick up compared with the last couple of years" - the key words here are "the last couple of years", which were lousy. Comparing something negative to something even more negative makes your negatively seem less negative.

"The ones that take the jump now are poised to make the most profit when things turn around." - this statement is the single-most exact reason people hate real estate agents. And for obvioius reasons. When Starbucks tells you their coffee is great, watch out.

"There continues to be strong demand for quality properties." - Strong demand? I don't see it. Maybe in other markets, but since this article was written for a Las Vegas paper, I'm assuming they're referencing the Las Vegas market, where the exact opposite seems to be the case. Just look around you if you're a local.

We're getting a lot of activity, which is going in the right direction" - Trust me, the only activity people are seeing are investors looking for an unrealistic "steal", then looking to steal the steal. There's certainly a lot of activity there.

Here's the tough love folks: if you're looking to invest in commercial real estate, take my advice and WAIT. WAIT WAIT WAIT. It's going to get worse short-term. There will be great opportunities for profits in the future and we're currently paving the ground with that at www.CommercialREOs.com, but only when the time is right. It's not now. Turn off the TV and stop reading the newspapers with all those stories written by those with agendas.

Seriously, I Just Got This Email Regarding Commercial Real Estate

2010-06-10T14:53:00.000-07:00

You know why people hate real estate agents? Because there's a perceived notion out there that real estate agents are all after the commission without regard to whether or not the purchase (or sale) is right for the CLIENT.

I want to share with you an email I just received that drives home exactly that. (I took out any references to the sender, or the company name that sent out this doozy):

There has never been a better time for business owners to purchase the commercial property their businesses occupy. It's a fact, and I'll tell you why.

The 20-year fixed interest rate on commercial loans projects continues to be historically low -- the effective rate for May is 5.52%. And that's fixed for 20 years! On top of that, the continued elimination of most up-front fees makes a commercial loan an unbeatable alternative to conventional financing . . . and a no-brainer for any business owner who recognizes the wealth-creating power of commercial property ownership.

The Experts in commercial property financing (that's us) make the purchasing process easy and simple because it's ALL we do. If you're the least bit interested in owning your commercial property, call me today

Is this guy doing ANY market research? Probably not - he just wants a deal. The fact is all RELIABLE DATA and market forecasting point to exactly the opposite - there's a perfect storm brewing in commercial real estate and if you think the residential foreclosure market got hit hard, just you wait.

"a no-brainer for any business owner who recognizes the wealth-creating power of commercial property ownership"?!?!? This must be a joke, right? It used to be "don't wait to buy real estate, buy real estate and wait". Not anymore. You'll be turning cartwheels of joy if you just wait around and get ready to pounce when the timing's right - but that time's certainly not now.

We've Moved!

2010-06-04T15:28:00.001-07:00

Check out our new blog here dedicated to commercial foreclosures, commercial reos, and commercial bank-owned property.