Quote:
Originally Posted by 911Freak
The real money right now is in buying broken condo projects, completing them and either selling or renting them out. These assets have been taken over by the banks (or are in receivership) and the banks are motivated to sell quickly and get them off the book as they can't invest more capital to complete them. Unlike single sfr where they'll list them with brokers and get a higher % of what their into them for, these are dead paper, already written off as loses and provide a quick source of badly needed capital to the institutions.
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In my own yearlong experience of shopping for distressed properties (we finally closed a month ago), I got the feeling banks were in no hurry at all to turn a paper loss into a real one. We had several short sales go into endless limbo and eventual foreclosure when we were ready to buy immediately for over asking price. It sure felt like they'd rather hold onto a non-performing asset than to let it go for market value, which was often a loss well into the six figures.