Just as a thought....would it be an option for the buyer to purchase everything other than the few hold-outs and settle everything after the fact? I have heard these people truly believe their properties are worth somewhere in the near neighborhood of 500k, which is absolute madness! I spoke with an owner at Paces Green and they are in the process of closing due to they reached 100%; however, the buyer had to negotiate with the final hold out. If this is our final shot we should at least exhaust all of our options. We only have 3 weeks. At this point, I could care less how much more the hold outs get, as long as the deal gets done!
I would like to thank everyone who put in effort to try and make this deal work. I want to thank each and every holdout in person for your inability to see what a great opportunity this is/was. Obviously we are dealing with a handfull of people who have no clue what kind of opportunity this is, clearly. I look forward to seeing all holdouts at the pool this summer, unless that gets taken away from all homeowners like the one other common area we pay for did a few weeks ago.
how about this option....all those with signed contracts agree to take a small hit on our selling price..say a grand each...and distribute this money amongst the holdouts and see if they will take it. We will loose a little bit of our profit but maybe it will be enough to get everyone on board...All though it would kill me to do it i would be willing to take a small hit in order to get this thing sold and get out there and find a new place while the market is still hot.
I agree. It's either we give up something to get the deal done or that's just it....a dead deal. I understand that even though we are all getting $280 per sq. foot the numbers work out differently per homeowner, yet if we don't do something now, all contracts are going to be destroyed, security is already gone, the cyber center no loner exists....at what point do these hold outs realize the building is more likely to be condemed rather than increase in value? If we all pooled in $1000 to make this deal work, each hold out would get ~30k on top of the contract.....I'm all in!
The taking less on signed contracts is a thought. $1K each won't get it done though, and I'm sure some will not give any because of the situation. I suspect others, like myself would be willing to give up "considerable" money to get this done. I think everyone should be contacted to see what amount they are willing to give, and then let's see where we're at. That is, if there is a buyer willing to deal without 100% contracts and the price is the issue. I wouldn't want my money to go toward the "holdouts". I'd rather deal with a buyer offering less than our $280/sq.ft adds up to. Let the others get left behind, and let the people wanting to deal and sell, put this together.
I just spoke with one of the hold outs. The guy owns TWO units here. I was upfront with him and I asked him what was the main reason he was holding out. He stated he was not getting enough money from the deal. I asked what he was looking to get accomplished if he were to sell his units and his main goal is to "move across the street". I asked if his cash out was doubled than what the spread sheet reflected would he be willing to sell his two units and his answer was "hell yeah"! From my understanding, there are about 4 or 5 hold outs. This guy owns two of the 4 or 5. I strongly feel we can get enough people on the side to put together a legal and offical contract to get this guy the amount of money he wants. To accomplish this, we dont need everybody in the building to agree on giving up a piece of their pie to him. Just enough people willing to give enough so this guy cash out is doubled (20 people on the side giving up $1,000 of their payout would satisfy this guy). Now the other issue is contacting and finding out why the other holdouts wont sell. If it's about money, again I'm sure we could gather together enough people willing to construct a side contract to pay these people off. Keep in mind this WONT take EVERYBODY in the building to agree upon this. Just enough people on the side willing to volunteer to give up a little piece of their pie to make these holdouts sell. Also keep in mind this would be an agreement between the people on the side and the holdout(s)...it wont have anything to do with the contracts we have already signed and the Sobu Flats Assemblage. The contract we put together on the side would be contingent on the holdout(s) signing the contract for the Sobu Flats Assemblage first. Then once we get paid, they get their share we agreed upon. This is just an idea guys. I know it may not seem fair for the stubborn people to make out like bandits if this were to happen, but if it doesnt happen then we find ourselves in a deep hole with the buidling, it's current shape, increased future HOA's just for upkeep, continuos illegal renters damaging the building and property, and the reality of selling or refinancing these individual condo's in this down market. I would hate to try to sell a year from now and have to BRING money to the closing table because the reality is, these units have not increased in value over the years. I'm being proactive with this and if anyone agrees with me and is willing to make something like this happen please let us know.
I'm willing to contribute to get the deal done. Now, the question is: Who are the remaining hold outs and what are they needing to get the deal done? As soon as we find out this informatioin, we will be that much closer to getting this deal done. Since the meeting has been re-scheduled for next week, it would be nice to have some progress before then. 3 weeks and counting!
What I think these people don't have a grasp on is the actual condition of this building. I mean we all understand the urgency here; but, I don't think they do. If they did, I don't know why they wouldn't want out.
What about using the money that will be left over from the budget towards paying the holdouts? That way the rest of the owners may not have to put as much in to the pot.
I'm not sure if these holdouts are just disgustingly greedy, or just don't have an understanding of what reality is. Here's what I'm willing to do to help. I'm a financial advisor with Merrill Lynch. I can provide the following insights to these holdouts ONLY if we could pull them all in a room together. 1. The harsh reality of the current condo market including the appraisal I just received on my unit because I'm needing to refinance the mortgage (still $40K below the original purchase price with no upward movement in sight). 2. I'll bring with me a very experienced realtor in the area who can share the harsh realities of the condo market and the sad outlook for years to come on a building like this. I'm sure he'd be happy to bring listings of much nicer condos they could buy with the money they get from the deal, and still have $50K in their pocket, or a much lower mortgage payment than they have now. 3. I'll bring my property manager who can share the harsh realities of how it's getting harder and harder to find renters because the building is looking older, the services are drying up, and they can simply find nicer places elsewhere. This will surely force more units into foreclosure, and with each foreclosure, add another year of time needed for the market pricing to come back. 4. I can show these math geniuses the time value of money, and how much they are loosing having their money tied up another 5 or more likely 10 years or more. They will be much better off investing in a conservative portfolio, or buying another nicer unit with the generous offer they take.
If after sharing this data, the holdouts don't see the light, whoever brings the baseball bat can then handle the second part of the meeting. Make sure we put lots of plastic on the floor.
All kidding aside, I'm beside myself that one of the holdouts, an older foreign sounding gentlemen on the eight floor believes his unit will be worth much more that the offer price in 5years????????????????????????????????????????????????????????????????
I would love the chance to see if we could just help educate them.
After going over the numbers again I realize why one of the holdouts is not budging. The owner brought the property seven years ago in 2001. He is scheduled to receive $6,000 at the closing (this is before the 3% comes out). After being here for seven years and walking away with $6,000 to relocate is much different than most of our situations. This particular person obviously over paid 7 years ago and is now in a hole. My only solution was to construct a "side deal" with the holdouts, but from what I'm understanding they are playing games and negotiating with them is a waste of time.
I also bought in 2001. It's lose money now or lose money later! Who are these people? And does anyone know for certain how many there are? Not only will they lose money later (3, 5, 10 years), but they will continue to put money into units (plumbing, painting, heating/ac, etc...) I recently had a plumbing issue which cost me $1000 and my ac/heat unit needs fixing, not to mention the paint is peeling. Plus, all the common area problems are going to come out of our pockets - this building is a mess! I've been here as long as anyone and nothing's changed. The bottomline is that it's an old building with many issues and it doesn't show well today and won't show well tomorrow. Even if you could sell these units on the market, you are talking about investing thousands just to get them listed. And how good are these units going to show when there's no concierge, no cyber center and there probably won't be an open pool?!? This is not going to change, it's only going to get worse. No one has been buying these units and no one will - not today, not tomorrow. Any chance we can get a list of the holdouts? I'd really like to know who they are when I see them. There are plenty of people who are losing money on this deal, but at least they are smart enough to realize that it's still a win. It's ridiculous to see the sign up next door, when our property is so much more desirable. These holdouts are biting of their noses to spite their face. Please tell us who they are?
19 comments:
Just as a thought....would it be an option for the buyer to purchase everything other than the few hold-outs and settle everything after the fact? I have heard these people truly believe their properties are worth somewhere in the near neighborhood of 500k, which is absolute madness! I spoke with an owner at Paces Green and they are in the process of closing due to they reached 100%; however, the buyer had to negotiate with the final hold out. If this is our final shot we should at least exhaust all of our options. We only have 3 weeks. At this point, I could care less how much more the hold outs get, as long as the deal gets done!
Sorry,
Holdouts will not get more money. Plus Sobu Flats Assemblage LLC is the Buyer, and this is who all sellers will have to deal with.
I would like to thank everyone who put in effort to try and make this deal work. I want to thank each and every holdout in person for your inability to see what a great opportunity this is/was. Obviously we are dealing with a handfull of people who have no clue what kind of opportunity this is, clearly. I look forward to seeing all holdouts at the pool this summer, unless that gets taken away from all homeowners like the one other common area we pay for did a few weeks ago.
how about this option....all those with signed contracts agree to take a small hit on our selling price..say a grand each...and distribute this money amongst the holdouts and see if they will take it. We will loose a little bit of our profit but maybe it will be enough to get everyone on board...All though it would kill me to do it i would be willing to take a small hit in order to get this thing sold and get out there and find a new place while the market is still hot.
I am with Paolo here. I am willing to take a bit of a hit if we can convince these holdouts to sell. What can we do?
I agree. It's either we give up something to get the deal done or that's just it....a dead deal. I understand that even though we are all getting $280 per sq. foot the numbers work out differently per homeowner, yet if we don't do something now, all contracts are going to be destroyed, security is already gone, the cyber center no loner exists....at what point do these hold outs realize the building is more likely to be condemed rather than increase in value? If we all pooled in $1000 to make this deal work, each hold out would get ~30k on top of the contract.....I'm all in!
The taking less on signed contracts is a thought. $1K each won't get it done though, and I'm sure some will not give any because of the situation. I suspect others, like myself would be willing to give up "considerable" money to get this done. I think everyone should be contacted to see what amount they are willing to give, and then let's see where we're at. That is, if there is a buyer willing to deal without 100% contracts and the price is the issue. I wouldn't want my money to go toward the "holdouts". I'd rather deal with a buyer offering less than our $280/sq.ft adds up to. Let the others get left behind, and let the people wanting to deal and sell, put this together.
Maybe we should have the interested party make us an offer based on the 96% we have signed. Let me know what you think.
I just spoke with one of the hold outs. The guy owns TWO units here. I was upfront with him and I asked him what was the main reason he was holding out. He stated he was not getting enough money from the deal. I asked what he was looking to get accomplished if he were to sell his units and his main goal is to "move across the street". I asked if his cash out was doubled than what the spread sheet reflected would he be willing to sell his two units and his answer was "hell yeah"! From my understanding, there are about 4 or 5 hold outs. This guy owns two of the 4 or 5. I strongly feel we can get enough people on the side to put together a legal and offical contract to get this guy the amount of money he wants. To accomplish this, we dont need everybody in the building to agree on giving up a piece of their pie to him. Just enough people willing to give enough so this guy cash out is doubled (20 people on the side giving up $1,000 of their payout would satisfy this guy). Now the other issue is contacting and finding out why the other holdouts wont sell. If it's about money, again I'm sure we could gather together enough people willing to construct a side contract to pay these people off. Keep in mind this WONT take EVERYBODY in the building to agree upon this. Just enough people on the side willing to volunteer to give up a little piece of their pie to make these holdouts sell. Also keep in mind this would be an agreement between the people on the side and the holdout(s)...it wont have anything to do with the contracts we have already signed and the Sobu Flats Assemblage. The contract we put together on the side would be contingent on the holdout(s) signing the contract for the Sobu Flats Assemblage first. Then once we get paid, they get their share we agreed upon. This is just an idea guys. I know it may not seem fair for the stubborn people to make out like bandits if this were to happen, but if it doesnt happen then we find ourselves in a deep hole with the buidling, it's current shape, increased future HOA's just for upkeep, continuos illegal renters damaging the building and property, and the reality of selling or refinancing these individual condo's in this down market. I would hate to try to sell a year from now and have to BRING money to the closing table because the reality is, these units have not increased in value over the years. I'm being proactive with this and if anyone agrees with me and is willing to make something like this happen please let us know.
hell yeah, you know im in, lets bring these guys to the table...who do we need to get in touch with to get the ball rolling?
I am willing to "volunteer" to give some $ to the holdouts.
I'm willing to contribute to get the deal done. Now, the question is: Who are the remaining hold outs and what are they needing to get the deal done? As soon as we find out this informatioin, we will be that much closer to getting this deal done. Since the meeting has been re-scheduled for next week, it would be nice to have some progress before then. 3 weeks and counting!
What I think these people don't have a grasp on is the actual condition of this building. I mean we all understand the urgency here; but, I don't think they do. If they did, I don't know why they wouldn't want out.
Let's get a meeting set with the holdsout asap. I am in for 1K for sure. Any ideas on how we get organized on this?
What about using the money that will be left over from the budget towards paying the holdouts? That way the rest of the owners may not have to put as much in to the pot.
I'm not sure if these holdouts are just disgustingly greedy, or just don't have an understanding of what reality is. Here's what I'm willing to do to help. I'm a financial advisor with Merrill Lynch. I can provide the following insights to these holdouts ONLY if we could pull them all in a room together.
1. The harsh reality of the current condo market including the appraisal I just received on my unit because I'm needing to refinance the mortgage (still $40K below the original purchase price with no upward movement in sight).
2. I'll bring with me a very experienced realtor in the area who can share the harsh realities of the condo market and the sad outlook for years to come on a building like this. I'm sure he'd be happy to bring listings of much nicer condos they could buy with the money they get from the deal, and still have $50K in their pocket, or a much lower mortgage payment than they have now.
3. I'll bring my property manager who can share the harsh realities of how it's getting harder and harder to find renters because the building is looking older, the services are drying up, and they can simply find nicer places elsewhere. This will surely force more units into foreclosure, and with each foreclosure, add another year of time needed for the market pricing to come back.
4. I can show these math geniuses the time value of money, and how much they are loosing having their money tied up another 5 or more likely 10 years or more. They will be much better off investing in a conservative portfolio, or buying another nicer unit with the generous offer they take.
If after sharing this data, the holdouts don't see the light, whoever brings the baseball bat can then handle the second part of the meeting. Make sure we put lots of plastic on the floor.
All kidding aside, I'm beside myself that one of the holdouts, an older foreign sounding gentlemen on the eight floor believes his unit will be worth much more that the offer price in 5years????????????????????????????????????????????????????????????????
I would love the chance to see if we could just help educate them.
Thanks, BRIAN
Call me by cell phone 706-830-3892.
After going over the numbers again I realize why one of the holdouts is not budging. The owner brought the property seven years ago in 2001. He is scheduled to receive $6,000 at the closing (this is before the 3% comes out). After being here for seven years and walking away with $6,000 to relocate is much different than most of our situations. This particular person obviously over paid 7 years ago and is now in a hole. My only solution was to construct a "side deal" with the holdouts, but from what I'm understanding they are playing games and negotiating with them is a waste of time.
I also bought in 2001. It's lose money now or lose money later! Who are these people? And does anyone know for certain how many there are? Not only will they lose money later (3, 5, 10 years), but they will continue to put money into units (plumbing, painting, heating/ac, etc...) I recently had a plumbing issue which cost me $1000 and my ac/heat unit needs fixing, not to mention the paint is peeling. Plus, all the common area problems are going to come out of our pockets - this building is a mess! I've been here as long as anyone and nothing's changed. The bottomline is that it's an old building with many issues and it doesn't show well today and won't show well tomorrow. Even if you could sell these units on the market, you are talking about investing thousands just to get them listed. And how good are these units going to show when there's no concierge, no cyber center and there probably won't be an open pool?!? This is not going to change, it's only going to get worse. No one has been buying these units and no one will - not today, not tomorrow. Any chance we can get a list of the holdouts? I'd really like to know who they are when I see them. There are plenty of people who are losing money on this deal, but at least they are smart enough to realize that it's still a win. It's ridiculous to see the sign up next door, when our property is so much more desirable. These holdouts are biting of their noses to spite their face. Please tell us who they are?
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