NSP Funds

[Nick Miller]

Anyone else seeing an increase in activity due to NSP funds? We have a couple of non-profits using NSP funds to purchase low income properties. These non-profits are getting unlimited funds from the state government and are making full price offers on some pretty bad properties. Not a bad deal for the seller. The down side is that they are putting a lot of investors, you know, the guys that have been buying all of these blighted homes and the ones that will be buying them when the NSP funds expire, out of business. The non-profits are able to buy FannieMae properties within the 15 day First Look option. It is hard to compete with that.

I am a little concerned about that often over looked law called the Law of Unintended Consequences.

Any thoughts from anyone else.

www.nicksbusinessjournal.com

[Billie Dalessio]

The last NSP deal I saw was 2 months ago, and the non-profit paid significantly LESS for a Fannie multi. One of my agents had an offer in at 30k over ask. The NSP paid 40k under. The NSP are receiving preferential treatment. In this particular case, the subject property needed minimal repairs and the neighborhood is far from blighted.

[Jacqui Fehlman]

At least here...in the North, it's still Investor Country. Even for a Fannie vendor -it's competetive. I just saw an investor with a decent urban portfolio pay TOP dollar on the street, for a multifamily with a conventional loan...hussle hussle hussle -people need some place to live -and this investor is in his early 20's so he figures his "Boys" need some place to live...and what better idea than to rent from a friend...