One of my clients has asked me to market 96 properties for sale in part or in whole. Most properties are inner city Columbus, OH and have a total debt balance in excess of $7,000,000 and can probably be purchased for much less.
I have another portfolio coming up through a bankruptcy case for about 55 properties mostly located in suburban Columbus, Ohio with an estimated value of another $7,000,000.
A third will be coming up in a receivership case of approximately 25 properties, mostly rented, in the Dayton, Ohio area. The estimated value has not yet been calculated.
Please call me at 877-5-GRYPHON if you are a direct buyer of distressed property or financial instruments. Confidentiality and Non-Circumvent documents will be required. These opportunities are for principal buyers. No broker calls at this point please.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
Rich,
Just out of curiosity - if you were entertaining offers through agents - what type of commission could I expect to negotiate in this type of deal?
What would my level of involvement be - besides just bringing the buyer to the table?
How accessible are the files for due dilligence? what type of time period is involved in the due dilligence?
I hope you don't mind shedding a little light on the topic - I saw this post earlier today and it has been on the back of my mind all day - just wondering who and how I cold pull something like this off.
Thanks and Have a Blessed day,
John Occhi, Hemet CA REALTOR®
Mission Grove Realty
good for you.... but how sad at the same time.
Eventually, we may be offering agent compensation on this. Right now, one portfolio includes financial instruments and the other 2 do not have buyer agent fees approved by the courts.
If you did bring someone in at this point it would be reasonable to request that they pay you a finders fee at closing. I would ask for 3%, but more than likely be happy ending up with 1% if all I did was pass the deal along. The key would be to negotiate it with your client. You could also write compensation into the contract for the seller to pay.
In the first file, the documetns are available for review as you might likely be buying the loans. They would be accessible preliminarily before an LOI and fully available after. If you wanted to view the properties, it would only be after agreement on a subject to inspection contract.
On the second two groups, access to the vacant properties would be possible before contracting and we would do our best to get you into the occupieds. We can do that 99% of the time.
DD time is negotiable, but about 2 weeks following coming to agreement is about right. The seller would also probably have a kick out clause that allows them to take another offer if someone steps up non-contingent while you were completing DD.