Posted by Mark (SDCA) on December 09, 2010 at 14:53:49:
Is anyone pursuing commercial REOs (specifically apartments)? Are you finding anything? It seems like there is a lot of junk out there… and most of THAT is still over-priced junk.
For example, I found one where the owner was walking away. The seller and lender were offering the right to assume the loan for a nominal free- total cash in would be ~5%. The problem is that even at 95% occupancy, the property looks to lose ~2k per month. And the broker wasn’t 100% sure that the lender would short. (I thought they needed to drop it around 30-35%.)
But maybe some gems in there too? (It’s one of those things where it seems like there really oughta be some deals there?)
Is it worth looking and how are you financing as the properties are likely WELL under-occupied.
Thanks for any discussion.