The commercial real estate bank owned opportunities will not materialize as did the residential REO market of the last couple years. Most commercial banks have taken a completely different strategy to reducing their bad debt. Few commercial banks are even starting the foreclosure process because they do not want the bad commercial assets on their books. This necessitates increasing cash reserves to offset the bad debt. In lieu of this, the banks would rather sell their non-performing notes to investors, who then can foreclose on the properties without incurring FDIC triggers.
The commercial distressed property opportunities will be even more attractive to investors than the residential deals were. The challenge is how to participate in these opportunities.
My partner, Julie Duong and I have the solution. We are pairing investors with banks to facilitate these transactions. Call us for a consultation so that we can deliver to you the best deals available.
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