Re: Assuming or Taking Over Delinquent Apartments

[ Follow Ups ] [ Post Followup ] [ CREOnline Lenders Forum ]

Posted by Mike on February 01, 2010 at 09:17:08:

In Reply to: Re: Assuming or Taking Over Delinquent Apartments posted by James Harris on January 31, 2010 at 21:55:07:

The only problem I see with taking over an existing note is that you'll probably be giving up the discount you could get if you wait for the property to go back to the bank. Not sure if banks would do a short sale on a commercial property. But I would think you'd come out far better by buying from the bank than catching up a defaulting owner's current note.

i.e. Current note: 1mil, property worth 800k.
Same 800k property: Purchase from bank for 650k minus 30% down: Note = 455k.

Its a lot easier to cash flow with a 455k note than it would be with a 1mil note.

There's a reason that the notes are going back to the bank - they don't cash flow where they're at.


Follow Ups:


Post a Followup

Name    : 
E-Mail  : 
Subject : 

Comments:

[ Follow Ups ] [ Post Followup ] [ CREOnline Lenders Forum ]

CRE Online, Inc. © 2007, All Rights Reserved.
creonline.com