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Buying foreclosures and short sales is more complicated than buyers think, according to Michael Sato and Christopher Feurer, the new owners of Jameson Real Estate.
Sato and Feurer also contend that buyers are unlikely to benefit from developers’ difficulties and report that bulk buyers – the “ultimate scavengers” – have yet to make their move in the Chicago market.
View more of Joe Zekas’ interview with Sato and Feurer on the YoChicago YouTube channel.
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{ 6 comments }
Shocking, looks like these guys just want commissions, and the projects that they have going bad to still sell..Good Luck with your big time Brokerage acquisition in this market! The old owners of Jameson are the smart ones
J,
I’m guessing – based on your e-mail address – that you’re a competitor of Jameson.
You really ought to disclose that so people can put your snark in the correct perspective.
Bulk buyers have been spotted in Uptown at projects on Sheridan, they were unable to come to terms with one developer there this summer, though today the bids would be even lower.
I don’t have a lot of inside knowledge about short sales or foreclosures but I’ve never heard of a short sale success story from a buyer’s perspective.
As you need to work with two other unhappy parties (the delinquent owner and their bank), I’ve heard its very hard to come out ahead in a short sale. In fact I’ve heard stories of delinquent owners listing at very low short sale prices as a delay tactic to stay in their home longer. Or banks attempting to addend clauses to the contract that they will be made whole by the new owner (essentially second-liening the property for an amount equal to the first mortgage).
I have heard from a few foreclosure/REO success stories, however as mentioned above these weren’t the regular buyers. It takes months, a lot of patience and a lot of paperwork and research. It helps to have a good handyman/rehabber in the family too. Many foreclosures require a non-trivial amount of investment in order to make them habitable and bring them up to code and most people who get burned on these probably didn’t do the right amount of research on the REO property they were buying.
I have nothing to do with the residential arena in my business. We solely deal with Commercial Properties, and most of our holdings are out of state.
J,
Thanks for the info. That makes your comment pretty valueless, doesn’t it? So what was the point of making it?
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