INVESTOR CORNER
"The Lineup 365" Presents April 7, 2010, 2010 Issue 18 Michael Grabelsky on behalf of/Powered by: Madison Real Estate ** FLORIDA, England, NEW York and Arizona ** New Listings: Hotels, Condos, Rentals, and Raw land! : Manchester, England Jr. Equity Partner: Buyer has secured and is planning a renovation of 126 room hotel/resort project by the Manchester Airport. The Senior Partner is a season veteran in the hotel industry operating over 20 properties throughout Europe. The goal of the senior partner is to have the Jr. partner paid off within a 12 month period after the sale. (Full detailed information in the office) Florida Del Ray Beach Luxury Rentals (Projected Grand Opening this Month!) (Bank Note) This Building is a 6- story Luxury rental community with 217 units, heated linear pool, Fitness Center, 24 hour Concierge Service desk, Clubroom and Sky Terrace to view downtown and the ocean. The project also has a seven level Garage and over 12,000 retail and restaurant space on the premises! Loan Amount $77 million. Appraisal Amount: Not Reported as of Yet! Miami Beach 1111 Lincoln Road 4 luxury 2000 plus square feet 2 bedrooms and 2 ½ Bathrooms for sale on a new mix-used development site near all the fantastic urban energy and the beach that makes up the south beach area! Currently single units are being offered for around $1,995,000. Do your due diligence; come up with a reasonable price for this awesome group of 4 units. Tampa/Orlando A Portfolio of B and C class buildings that can be bought individually or as a package. The Representative who sent this to me has made a claim that there are 893 units in total of five buildings. All the buildings have been renovated within the last couple of years. There is also a claim that the Cap Rate for all 893 units =8.84%. These units are off market. All the buildings are over 90 percent occupied according to the representative. Two of the buildings are very close to the University of Central Florida! Seller is willing to listen to reasonable offers. (Commission must come out of the buyer’s side!). I will be putting a separate sheet out later in the week for more detail information on this package. Asking price: Between $51k-$66K per door depending on the property. New York- Brooklyn-Raw Land!!! 4000 buildable square feet ready for both residential and a multi-family unit. This property is on Macon st. in the Bed-Sty section. Asking Price: Reduced to $149,000. New York- 3-West 16 Street This is a wonderful opportunity to get creative, and build an amazing bed and breakfast or boutique hotel just off of lower Fifth Avenue. Blue prints in house. Building is currently being used as a house of worship. Asking Price: $15,000,000 finished. Arizona Mesa 304 units- Currently 90% occupied Asking almost $50,000 per door Existing Lender will entertain the notion of working with the new buyer for future funding of the building 95 of the units have been recently renovated. DISCLAIMER: Information contained herein is provided by sources deemed reliable. No representation as to the accuracy of the data provided is made by Madison Real Estate or Starrnic Properties LLC; all information is subject to errors and omissions, potential change of price prior to sale or lease or withdrawal of listing without notice. All presented offers are contingent upon Seller/Owner's approval. Madison Real Estate and Starrnic Properties LLC are independent entities. Madison Real Estate and Starrnic Properties LLC are in compliance with and supports Fair Housing Laws. Please refer to your attorney for any legal advice, and a tax advisor for tax-related questions. All dimensions provided are approximate. We welcome you to bring your own architect or engineer for exact dimensions. ------------- Ten simple steps involved in buying bank notes The mechanics surrounding the purchase of ANY real estate secured debt instrument (the note) are essentially the same whether you are purchasing from a private note holder or from an intuitional banking lender. 1. One must verify what the outstanding balance due on the note and the actual repayment terms of the note are. I cannot stress enough that you MUST review the actual bank documents that were executed! 2. Verify with the seller of the note (the Assignor) the interest paid through date (or last paid date) 3. Verify the next payment due date. 4. Be certain that the mortgage (or trust deed) is in an insurable FIRST lien position loan (assuming you are buying a 1st lien). This is where a review of the existing mortgagee/lenders title insurance policy comes into play. Such a loan title insurance policy was probably issued when the loan was originated. 5. Confirm the value of the collateral property that secures the note (that is today's fair market value). You can do your own evaluation, or have a BPO* (broker price opinion) report done, or a formal drive-by, appraisal, etc. Another suggestion, if you can not set up the above procedures, get as many photo’s as possible of the property in question. 6. Get the actual mortgage (or trust deed) security instrument assigned over to you or your entity. The assignment, once executed and recorded, will accomplish this and transfer all rights, title, and interest in the instrument to you; the assignee. (I know these sounds like common sense items, but just want to make sure you do this!) 7. Have the original promissory note instrument endorsed over to your or your entity (making sure the assignment of the security instrument and endorsement of the note match one another). The endorsement can take place right on the actual original promissory note instrument or via a separate note along (an attached endorsement). 8. Have physical possession of the original promissory note instrument given to you. This is the negotiable instrument you are purchasing and whose rights you will be able to enforce for non-payment of the debt. 9. You may want to obtain an estoppel affidavit from the Assignor. They will affirm for you the actual balance and terms of the note and might be useful in a later dispute with the debtor. 10. Obtain notification letters to both the note payer and fire hazard insurance agent notifying them of the transfer of the note account. (These are often referred to as so called "goodbye," "welcome," and change of loss payee letters.) Consult with your own attorney to make sure that what you are purchasing is what you agreed too. Once you own the actual debt instrument (the note) there are a number of options available for you to pursue in an attempt to collect or get the note instrument performing. *BPO-or Broker price opinion-he estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion is based on the characteristics of the property being considered. Some of the factors that a broker will consider when pricing a property include: the value of similar surrounding properties, sales trends in the neighborhood, an estimate of any of the costs associated with getting the property ready for sale and/or the cost of any needed repairs. It is important to note that a BPO is not the same as an appraisal. DISCLAIMER: Information contained herein is provided by sources deemed reliable. No representation as to the accuracy of the data provided is made by Madison Real Estate or Starrnic Properties llc; all information is subject to errors and omissions, potential change of price prior to sale or lease or withdrawal of listing without notice. All presented offers are contingent upon Seller/Owner's approval. Madison Real Estate and Starrnic Properties llc are independent entities. Madison Real Estate and Starrnic Properties llc are in compliance with and supports Fair Housing Laws. Please refer to your attorney for any legal advice, and a tax advisor for tax-related questions. All dimensions provided are approximate. We welcome you to bring your own architect or engineer for exact dimensions.
Presents:
Here are ten steps to follow:
You also want to establish the status of the property taxes, whether they are current or delinquent, and any impound escrow funds that might be held and be transferred to you for such payment as taxes and fire hazard insurance premiums.
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