Monday, February 11, 2008
Need signatures to move forward!
SOBU Homeowners All signed Purchase and Sales agreements are needed to be turned in to the SOBU Assemblage LLC Before 29 Feb 08. If we do not have all 100% of homeowners signed on purchase and sales agreements we will terminate all contracts, for the property is not fully marketable. This week we have a 2nd meeting with a group that has expresses interest. Only with 100% participation will they move forward with an offer.The continued deterioration of the condo market, and the amount of money needed to convert back to rentals, has made it hard for perspective buyers to get the “numbers” to work. The skinny is we need everyone to sign or we can not move forward with the party that has expressed interest.On another note, Chris Tilley, Thank you for your time, and all the help keeping things together the past few months.
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7 comments:
This is my response to Feb 6 discussion:
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.
I think that we need to have another meeting in which the hold- outs are present. During this meeting we should entertain their concerns in an effort to determine why they are allowing a perfectly good opportunity to wither. It could be that these individuals know something about the markets( and economy) of which the rest of us are not aware. If they know something that I don't know, I would really like to know this information so that I may plan my financial future accordingly!! Alternatively, the individuals that are holding out are simply not informed. If the latter is the case, we should provide them with a Suzy Orman style information session that will logically and analytically explain the good, the bad and the ugly economics of not following through with this opportunity. In this way, we might persuade them that signing the contract is really a good thing. Of course, if the individuals holding out see this as a cash cow (aka lottery) opportunity or are incognizant enough to believe that they can sell real estate based on future value (like pork bellies, corn and cotton) then it is likely that they will never be persuaded positively. In any event, we owe one more chance to this opportunity to attempt to get everyone on board.
Lets get a meeting with the holdouts asap! Are they willing to listen? I am sure they are tired of hearing us.
I am sickened at the greed of the 5 people holding out. I would add ingorance, but it looks like everything has been explained to them. Is there really no way to proceed without their cooperation?
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?
Its hard enough to show someone a unit in our building because they see our condo ass. fee and run (even though this includes everything people dont understand that). Also nobody is big on having a window unit air/heater. The grounds look like an old dirty dorm (also not a plus). Either we all sell together or no one sells at all... Anyone can easily find a similar priced condo within a mile radius that is much newer and probably has a balcony. That goes for now or five years from now. Has anyone talked to the hold outs and discussed the fact that people are willing to hand over up their own money (share of their profits from sale) to them in order to get them on board or are they just flat out not talking?
I think you all are discounting the fact that some people may not be greedy and determined to do damage to your profit margin, but may simply be happy with what they have and not the type who equate everything with getting more money. Quality of light, views, corner units with light from 2 sides may be just what people intended to buy and enjoy living with. If they have a small square footage they are not being compensated enough to buy the same unit elsewhere. Don't confuse greed with contentedness in one's station.
Nick
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