Hi guys and gals. It's been a while. Not sure how much I am going to be around, but just thought that I needed to share something. Maybe someone will Google me and read the words that need to be understood.
We deal with a lot of lenders in Columbus and Central Ohio on a consultant basis and to act as receiver for properties in foreclosure. Basically that means we take possession of assets under court order if the borrower abandons them, is running them into the ground, etc. When we do this, most of the time we are ordered to liquidate the property. We also do REO.
We recently took on a new client that wanted the property liquidated "for the best we could get for it, fast". When they learned that this meant sales for $16,000 to $22,000 on properties they loaned $80,000 on, they changed their opinion. What they are going to do I have no idea, but we are not going to be involved. If I want to spend my day with someone who doesn't listen, I will take my 6 year old to Toys R Us.
Last year we took on a client in the same situation. They wouldn't sell for market value and now the market is way down. Prices that were "insulting" last year are now considered to be a great deal. Yep. We still have them. Too bad we can't get those prices these days!
Over the weekend there was a major storm and trees are down all over the State of Ohio. So are power lines.
We had one tree fall and crush a house and another where a power line hit the house and a fire burned it to the ground.
Ladies and Gentlemen - There is a lot of risk here. Prices are dropping. Inventory is (to use a technical term) insanely high. There is a 50 ++ % chance that your inner city REO is going to be vandalized.
I have been doing this sort of stuff for 12 years. There is a time for holding and hoping, but this is not it. Rip off the band aid, blow this stuff out and be done. One of these days someone is going to say that tomorrow will be better and they will be right, but that day is not today.
As Dennis Miller says, "That's just my opinion America. I could be wrong."
R
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 Ohio 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 Ohio Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
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I wondered where the hell you've been but knew you must be busy. I hope you'll stick your nose in here from time to time and tell us like it is.
You're right...people need to get real. We need to move the inventory and let this thing shake out once and for all. I've got a headache that I don't think is going away until mid-2010 at the earliest.