Distressed Commercial Properties Are Available From Developers Capital Realty

By
Real Estate Agent with Morris Williams Realty

 

 

Another week here in Central Fla means there is another ten or more great deals

that Developers Capital Realty has to offer. No kidding, deals are now coming to us in bundles of properties..Some are almost buy one get one free.

The housing crisis has put so much pressure on the builders, the lenders, and everyone in between. Banks are very reluctant to making the decision that is becoming inevitable. Strip Centers, Office buildings, and even medical complexes are feeling the ripple effect as the lenders have no choice but to start calling notes.

Many of these projects are very close to completion, are in lease out stages, with more time needed to survive this hopefully temporary downturn. Anyone who has ever been involved in new construction knows that a project that is coming out of the ground now had to be started years ago, and has gone thru possibly millions in fees, engineering studies and an unbelievable amount of red tape.

Developers Capital Realty, LLC is in contact daily with many of these troubled developers in an effort to find funding for many of these projects. These are not projects that will be found listed on websites  like Loopnet, and most people do not even know they are avialable for aquisition. Relatively small amounts of money are required to buy these projects on a JV basis now, the deals are actually unbelievable...

Please, this is not a call for Realtors to list these deals. This is a call for people who represent cash investors to purchase equity positions in projects and property without having to wait years for development. Large cash investors and their broker representatives will be of course protected.

In the arena of existing properties, the opportunities are nearly endless. Developers Capital Realty has submitted over 80 million in contract offers in the last 90 days on commercial deals that average 60 cents or less on the dollar. Most banks can't help now, we are using private investors and hedge funds to bid these super deals.

I have never been busier in my life. I can only say that this will be a time that people will look back on and wish they had not missed the boat. Again, all brokers and individuals are protected, lets go buy deals..

Contact Mike Norvell Sr at Developers Capital Realty, LLC          If you represent large cash investers, we can do business right now....  Next.....How many apt buildings would you like????

 

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Rainmaker
189,766
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT

Nice post!  But aside from that.....LOVE the bumble cow.

Jun 11, 2008 12:49 AM #1
Rainer
105,415
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

Yeah, Clint, how about that for changing an agent photo!!!

Jun 11, 2008 01:04 AM #2
Rainer
105,415
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group

To the few people that have emailed me...i have not closed on any of the big ones yet..we are progressing, the lawyers and all parties take time...1 of the deals jumped bankruptcy at the last minute..

We are continuing to search out new projects...we will eventually have some of the big deals fall, and we will keep on writing more

Jul 01, 2008 09:58 AM #3
Rainer
500
Keith Fritz
DHR Info - Coral Springs, FL

This might help with marketing:

 

BuilderBrokerNetwork.com is a new inexpensive way to market commercial real estate.

 

Compared to other sites it's a fraction of the cost at $60 a year.

 

Hope this was helpful.

Jul 02, 2008 11:20 AM #4
Anonymous
Anonymous

The Distressed Asset Acquisition Program 

We are pleased to announce the creation of the Distressed Asset Acquisition Program.  This new program will facilitate the acquisition of distressed commercial real estate and debt from institutional and non-institutional capital sources as well as acting as a clearing house for lenders liquidating REO and loans in default. 

MISSION:    We will provide the capital to the developer and/or asset management group that has identified a favorable acquisition opportunity and needs debt and/or equity to complete the purchase.  The goal of this is to enable the developer/manager to close very quickly to take advantage of the significant discount typically offered an all cash purchaser. 

FUNDING:  We have created strategic alliances with Investors that will provide the requested funds.  This diverse group of capital partners will enable us to fund a wide variety of different asset and property types. 

TRANSACTION TYPES:  DAAP will focus on enabling the following kinds of transactions:

The purchase of distressed commercial real estate from lenders

Thecquisition of loans at discount from lenders

The funding of short pays or senior debt with a lender subordinating its current debt.

Providing both debt and equity for outstanding turn-around opportunities.

PROPERTY and DEAL TYPES 

Commercial, multi-family and residential development properties will be considered.  No one off single family homes will be considered.

Condo's will be considered where the acquisition makes sense as a repositioning opportunity as rentals or in very robust markets.

Partially completed construction projects will be considered where institutional lenders have ceased to fund. 

CRITERIA FOR DEBT TRANSACTIONS

The transaction is an outstanding opportunity to acquire either debt or a hard asset at deep discount.

The Borrower is experienced in developing and operating the asset type.

The Borrower has a business plan that contemplates a pay-off to the Investor typically in less than 24 months although phased transactions will be considered.

Transactions that rely on the passage of time for value creation will not be considered.

The Borrower will put in a minimum of 20% to 30% of the cost of the transaction including redevelopment costs.

The Borrower has excellent credit and is willing to personally guarantee the loan.

Estimated costs for these funds are 4 to 6 points and 12% to 16% interest.  Typically, interest is pre-funded for the term of the loan.

Loan amount is a minimum of $2,000,000 

Additional Criteria for Debt plus Equity Transactions: 

The Borrower will put in a minimum of 10% of the cost of the transaction including redevelopment costs.

The Investor will realize an IRR of at least 22% on the equity component of the transaction.

Minimum transaction size of $5,000,000

Doug Goins

Regional Director

Direct Money Lenders Inc.

Indianapolis, In  46074

317-710-0126 - direct - 1-866-471-2788 - fax

www.directmoneylenders.com

doug@directmoneylenders.com

Aug 06, 2008 07:28 AM #5
Rainer
19,710
Billie Chubb
Chubb Realty Group - Wilmington, DE

Do you have anything in Delaware. Might have some people of interest if you do.

Aug 06, 2008 08:11 AM #6
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Rainer
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Mike Norvell Sr

Norvell Consulting Group
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