The story about how Fannie Mae is pursuing foreclosure on two Bronx apartment buildings for $61.5 million is an attention getter for landlords and investors whether within or across the country from New York City. Chances are many people seeing this story will go with a gut reaction and continue along with their day. They may think, "Glad it's not my problem", "No wonder I don't invest in NYC properties", or "That's what happens when you don't pay the bills". Those are the type of thoughts that come when there is not a focus on researching situations.
A situation like this one, while horrible for the current owners and the financial institutions involved, could be a major opportunity for others. When you don't have a research person or team on your side, you risk losing out on numerous opportunities which could become long-term "difference makers".
Fannie Mae is not looking to manage these properties any longer than they have to. If $61.5 million is a lot more than these properties are worth, they will realize they are not going to get their needed revenue solely from a sale, because no one will overpay. There is a number for which a new buyer could acquire these properties and make it work for them for the long term. Chances are there is a property management company that would love to take on a large project in NYC.
There appears to be room for negotiation to take a huge problem off the "seller's" hands. When research is top of mind, the gut reaction should be, "What is the number I/we would need to offer in order to make this work for us?". That is followed by the "Who do we know.....?", "How soon can we......?" and related questions which can be determined by research and knowledge.
A few years from now, someone is going to be making money from that property after all is said and done. Whoever it is, they will have been prepared with solid research, the best offer, and the skills to pull it off. They couldn't have done it without knowing how and what to research.
Posts
No comments:
Post a Comment