Commercial capital and financial experts are predicting that the commercial market will begin to experience an accelleration of “Bank Owned” (REO) properties as more and more owners experience downturns in tenant performance and the inability to service existing mortgage debt, note calls and stringent refinance requirements.
It’s About the Money. Throughout 2009 and well into 2010, commercial owners are going to come under some pressure with respect to turning properties and even exchanging out due to the financial markets.
Sellers are already having problems finding buyers for conventional property investments. Why? It’s about the money AND it’s about the decline in values that buyers don’t want to face after they purchase.
New Market Realities. Savvy investors are thinking about the new market realities and where they need to park their money for the next 24-48 months. The key is minimizing risk.
This investment reluctance is leading investors to pursue real estate owned property (REOs) and that is why Arizona Commercial, my company, has established “REOS” or, Real Estate Owned Services” as am owner consulting and investment service.
REOS involves consulting services for existing owners, bank asset managers and of course, investors who are resisting declining property values found in traditional investments.