Why the hell do these assholes think they’re entitled to have owners and lenders sell to them at the bottom? Hey assholes, everyone gets it, property values are way down. This does not mean anyone is obligated to sell to you!
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Rough year?
Lol I could write the same thing about lenders that want to sell their note at par or core funds that think rescue capital should only cost 12%
This is basically a rant against all owners and all buyers. Everyone wants to sell at the top and buy at the bottom.
The difference is that the bottom feeders give the impression on profiting on other people's misery, which is obviously not going to sit well with lots of people. No one holds a proverbial gun to anyone's head to buy when the market is roaring, so it's not as easy to convince yourself that a seller did you dirty. There is that proverbial gun when you've got a note maturing in 3 months and no cash to pay it.
lmao either do better deals or deal with it. It’s just business.
Don't default on your loan and we won't scoop it up at rock-bottom prices.
almost as bad as distressed owners trying to raise capital at 2021 pricing
There is a reason its called "distressed". When you're in that position you don't get to choose when you sell.
Good luck OP and let us know when you're ready to stop the bleeding
Because we're not at the bottom, the bottom is when you do have to sell or you go BK. A lot of money still out there thinking we're heading back up, but it's only a matter of time. Might think of them as a holes now, but might be kicking yourself in a few months saying I should've sold to them.
I will be honest here, there were a few comments and posts about how kicking the can down the road was the “best” option for these sponsors and keeping their reputation in another thread or two recently. I don’t agree with that statement, but figured OP can have a response into why he wouldn’t sell distressed assets today.
to me? Math = math. Distress is just underwater/negative math.
Agreed, these lenders and owners get upset that someone is essentially offering them a lifeline and cut their losses. I get it, it looks like they are trying to profit off of your distress, because they are, but look at it as you can survive to tell the story. The worst thing you can do in this situation is tell them to F off, because if you need them in the future they will hose you!
If you are truly distressed, I agree. But I personally get frustrated with "buyers" who pitch buying our stabilized, cash flowing, low-leverage properties and get offended when I tell them what the pricing would need to be. "That's a completely outrageous expectation". No it's not, I don't have to sell. If you want me to sell something that is not distressed, that is my price.
That's because most of the real estate industry is made up of people who have no idea what they're doing, don't have a real business plan or any specialized knowledge, and just follow the pack on whatever the flavor of the month investing strategy is. When buying Class C garden style apartments in the South and Southwest was the thing to be doing, you had all those buyers chasing those deals with unrealistic expectations, too. Now, after 24 months of doom and gloom, "distressed" is the buzzy buzzword so every idiot and their uncle wants to buy a "distressed" deal and is butthurt when it turns out that no, the market isn't flooded with people looking to offload assets for only the debt, and if those exist, those assets aren't even worth that.
A lot of people honestly seem to think that real estate ownership begins and ends at the Excel level. Like, put together an underwriting model that shows a nice return and then go out and offer that price, and then have the shocked pikachu face when people aren't willing to engage with their fantasies.
Right. These guys run around trying to find shit to buy then get mad when the people who never wanted to talk to them in the first place won’t give them a bargain.
How long can you service your warehouse lines and preferred clo positions before you have to Bk?
What are the senior CLOs servicers not failing the originators’ junk bond pieces on the asset value tests?
The asset values are clearly below the loan amounts and the CLOs should be hyper amortizing. If I owned the senior piece, I would want to start getting paid down faster. Are the senior servicers paying attention to the asset valuations?
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