Commercial REO Or Paper?

As you probably all know by know my niche is commercial distressed assets. We are starting to get a lot of requests for residential and/or commercial notes (NPNs and PNs) versus REO. Most great commercial properties are acquired by buying the NPN or PN before it becomes REO. That's why there isn't much commercial REO inventory. Buying the note has a lot more risk as the note is not free of liens, other loans and/or encumbrances. However, the discounts are much better 35%+ of value; in some cases as low as 10s or 20s! Many institutional or private capital investors are willing to take the risk to get the higher discounts and better choice of assets. Is anyone else seeing similar activity for residential and/or commercial inventory in your market?

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