VACANT RETAIL SPACE

Commercial Bank owned properties are not an exception with property value affected by vacant space. I had recently a conversation with a new owner who was complaining about his vacant space as the result of his advertising to find retailer. Advertising is not enough in this present economy and I believe it is necessary to have more to offer to any potential tenant. Research is mandatory to find out what is necessary to expand his region for effective product distribution. The community should be enhanced especially accordingly with the product to be distributed. Attend ICSC trade show with all the appropriate research related to the location. I am certainly amazed by available data (STDB) which offers great resources to establish a report to convince the location to the potential tenant. I will have to admit that it will take me some time to master all available resources. Nevertheless, having a commercial REO property listed should have a priority to find a good prospective tenant with a solid LOI to facilitate the venue of any investor.

FOR IMMEDIATE RELEASE

According to some recent articles regarding default industry, a large increase of REOs has recently been hitting the market and is expected to increase strongly. It is obvious that efficiency will be required to maximize the recovery of capital of these REO Asset.

The purpose of this page is to maximize the value of services I am offering. Asset Managers can understand better how my experience and knowledge will benefit their goal to sell their asset at the highest closing ratio to BPO/listing. Blogs on various subjects related to REO management will be often updated. My opinions are supported by appropriate information.
They also reflect the way I conduct my business and my work ethic to be part of your team. 

Cash For Keys

Successful “cash for keys” completed! Obviously the property was broom clean condition with all debris and trashes removed. The exchange occurred within 3 weeks of the initial assignment.

My first contact with the owner was not encouraging. He was really frustrated, not talkative and let me know that “Smith & Wesson” were his friends as the result of many solicitations from other agent for short sale and other related program. I did not give up and made sure he understood a better deal than worst situation as Lawyer and Sheriff’s eviction.

It was raining solid on my second attempt. He granted me 4 minutes to talk and made sure to remain outside. It gave me enough time to explain him the situation and also be sure he understands that “I am his friend and after all, I am here to help him!”

I have learnt this concept from two different experiences. One was when I was doing property management in France and some properties were subject to a 1948 Law which was implemented for habitat rehabilitation after World War 2. It can be translated by the “Rent Control” worst case scenario. Regardless the law, I was meeting with frustrated tenants to “help them” and maintained a good communication. This concept opened a lot of doors to me.

Second experience was as Airline pilot prior the 2001 tragedy. I studied “human factors in flight” concepts and issues coming as safety with hijacking situation. Passengers used the “Stockholm Syndrome” concept. This was coming after a notable incident in Sweden where bank hostages started to show a positive feeling of compassion toward the bad guys and a negative feeling toward the authorities. It resulted the bad guys reciprocated a positive feeling toward their hostages. Efficient as it is simple!

How does it affect me and my “client”? Well, since he was showing some frustration which could lead to unexpected behavior and complication, it was necessary to let him know some compassion and that it is a difficult time for all of us, I was recently in a similar situation so I knew the feelings.

Our conversation was extended from 4 minutes to 45 minutes as soon as I have conveyed my sympathy. He was already showing some cooperation. It was raining more and it was time to escape politely as soon as I have seen the change of behavior. I let him know that I will be back very soon. We were suddenly in the “same boat” and I could help him. How great!

The door was open on my next visit and he showed me the house, the improvements he did over the past years with all positive outcomes to sell it more efficiently. He was still arguing with the CFK amount and the time frame, but we arrived very quickly to a very acceptable compromise. Actually, I believe we (AM and me) got a better deal than a cleaned property. Seller left additional appliances he first wanted to remove. I was able to use his precious information to market the property at a higher price than listed! 03/28/2010.

REO FOR SALE AT LOWER PRICE THAN LISTED!

    Does it make sense? Not really…Let me explain by first see what does it take to sell a property at its highest value:

• Property should be vacant and clean
• Listed on MLS with accurate and detailed information
• MLS with as many nice photos related to the subject property
• Landscape should be inviting Vs. repulsive 
• Broker Open House is very important
• Sunday Open House is mandatory
• Advertising on Craigslist is FREE
• Dedicated Website is informative for potential buyers
• Complementary Advertising appropriate to the property
• Local lockbox to ease access to cooperating broker
• Frequent maintenance to keep the property fresh
• Listing agent available on phone

    This list is not limitative but remains part of a logical equation to sell any property including REO because the property is vacant. At least, This is what I am doing! We have to show the porperty at its BEST if we want to sell high.

    Marin County where is my office has about 1400 properties in foreclosure (Auction, pre-foreclosure and REO) while Sonoma County has more than 3000 as per tax records data.

    MLS is showing that more Bank Owned properties are listed by agents/brokers located in other Counties such as Napa, Sonoma, Solano and Contra Costa. As there are not enough foreclosures in their own Counties. The result is not encouraging for Asset Manager neither for local agents. Might not be obvious but this is the reality!

    As an example, this property listed with no local lockbox, never had any open house, never listed on Craigslist, agents does not return message so we don’t have access, more than 120 DOM, 4 price reductions and finally a pool turning blue to black as seen on photos. 

    Property with no local lockbox and listing agent not answering their phone and not even returning messages to provide code lockbox because they are from other county is restricting a lot of showing on the subject property and does not help to sell fast at its highest value.
I experieced this situation and frustrated potential buyers.

    I have completed a BPO where the property was heavily damaged by water leak and obviously not monitored for several weeks as mold was there! Listing agent located with extended proximity did not limit the damage by his due diligence to assess any potential damage.

    Some location might not be an obvious challenge for some AM just by looking a map. Commuting from some other County is not only driving on a freeway but crossing bridge, toll plaza and other traffic congestion due to the unique location of the San Francisco Bay Area.

    Monitoring a listed property make it very difficult especially if this agent is already very busy in their own County. I don’t want to say impossible, but really need to be committed and dedicated to this mission as their fiduciary duty.

    The reality shows differently with neglected properties finally sold after multiple price reductions and extended DOM. So why not take advantage of what can offer a local agent as described the begining of this blog.

         I am available to offer my best to avoid this kind of scenario.