I am not offended at all.
A lot of people just find my inquisitive nature as offensive. Each to their own. I find the more I ask / question / doubt / challenge (whatever you want to call it), the more I learn.
As for this discussion topic, I can’t comment regarding commercial property as it is not my area of expertise, but regarding coded loans (UCCC), it is not legally possible to do under-the-counter or behind the scenes deals. There is a legislative responsibility to obtain the best price possible for the borrower so properties are placed on the open market (usually through mortgage auction sale). Any proceeds above what is owed are forwarded to the borrower who defaulted.
Part of this responsibility is to sell the property at the lowest cost possible as well. When I worked in real estate, the process involved a lender sending a request to 3 or 4 agents who responded with a quote. The lender was then obliged to accept the lowest quote from a reputable agent. There were certainly no 8 or 9% commissions.
Robert Bou-Hamdan
Mortgage AdviserThe recent posting is not in regards to repo’s, just some developers getting in some hot water then trying to get out I guess, I dont really know what the full story is, all I can comment on is the fact that the vendor needs to off-load fast. All legal. You could call it spotting I guess.
We are all made from Stars.
I have seen a few developer fire sales sell for well below market price or for what is owed to their lender. This is usually done by the developer though. The problem with determining market price is difficult in the current economic climate.
The difficulty financing a partially completed development also makes these properties less attractive.
Robert Bou-Hamdan
Mortgage AdviserMost are completed, we have some refurbished with existing tenants in place.
I agree that the times are becoming volatile, especially in regards to over surplus in the unit sector. A friend told me the other day that there is an easy marker to pick an immanent recession, look to the skyline and count the cranes! Or when they have built the next tallest building you can count down within 3 years. Don’t know if it is true or not but it gets you thinking outside the square for a moment.
Personally I like recessions, for the committed savers it is the moment we have all been waiting for!
We are all made from Stars.
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