Investing in Non Performing Loans (NPNs)

[clearfund]

A conservative accountant who loves bonds, and insurance??? Shocking!!!

I do find my finance side tempered by my business partner/CFO who was a former international tax partner at Andersen in New York, London, and Tokyo. He was so disgusted with the business after the Enron debacle (which he was no where near) that he retired until he unretired to partake in this evolving down real estate market.

I agree that there is more downside than upside today. However, one cannot rebuild a portfolio on the day everything seems rosy again.

I am of the philosophy that we get as work towards the bottom (at least as we can see) cautiously begin wading in (this is where we are now), pick up steam as the knife falls farther and likely wind down once the upside is realized by all.

A few before the bottom
A few at the bottom
A few after the bottom

We’ll see how the ‘speculation’ works out….

As Thomas Barrack of Colony Capital (multi $B RE Advisor) said of investing in this real estate market last fall “..up till now, everybody’s been wrong…”

[Allan from Fallbrook]

If memory serves, all of Andersen got retired, didn’t they? That whole Enron (Global Crossing, Tyco, Adelphia, etc) debacle should have been a clarion call across the board for government, banking, finance, and law regarding regulation and oversight. Sadly, we were given SarbOx as a palliative and then back to business as usual.

My point with the above has to do with its intersection in investments and all of the fraud, malfeasance, mismanagement and just downright stupid shit that has gone on over the last dozen years or so. I’m not one to suggest waiting till everything is rosy again, but I believe that, good times or bad, a deal either pencils or it doesn’t. You see that often enough even on this board with poorly informed or poorly educated “investors” prattling on about some “great” deal with huge “upside” and its nothing but a joke.

Still a lot of pain out there for the unready or unwise.

[Allan from Fallbrook]

If memory serves, all of Andersen got retired, didn’t they? That whole Enron (Global Crossing, Tyco, Adelphia, etc) debacle should have been a clarion call across the board for government, banking, finance, and law regarding regulation and oversight. Sadly, we were given SarbOx as a palliative and then back to business as usual.

My point with the above has to do with its intersection in investments and all of the fraud, malfeasance, mismanagement and just downright stupid shit that has gone on over the last dozen years or so. I’m not one to suggest waiting till everything is rosy again, but I believe that, good times or bad, a deal either pencils or it doesn’t. You see that often enough even on this board with poorly informed or poorly educated “investors” prattling on about some “great” deal with huge “upside” and its nothing but a joke.

Still a lot of pain out there for the unready or unwise.

[Allan from Fallbrook]

If memory serves, all of Andersen got retired, didn’t they? That whole Enron (Global Crossing, Tyco, Adelphia, etc) debacle should have been a clarion call across the board for government, banking, finance, and law regarding regulation and oversight. Sadly, we were given SarbOx as a palliative and then back to business as usual.

My point with the above has to do with its intersection in investments and all of the fraud, malfeasance, mismanagement and just downright stupid shit that has gone on over the last dozen years or so. I’m not one to suggest waiting till everything is rosy again, but I believe that, good times or bad, a deal either pencils or it doesn’t. You see that often enough even on this board with poorly informed or poorly educated “investors” prattling on about some “great” deal with huge “upside” and its nothing but a joke.

Still a lot of pain out there for the unready or unwise.

[Allan from Fallbrook]

If memory serves, all of Andersen got retired, didn’t they? That whole Enron (Global Crossing, Tyco, Adelphia, etc) debacle should have been a clarion call across the board for government, banking, finance, and law regarding regulation and oversight. Sadly, we were given SarbOx as a palliative and then back to business as usual.

My point with the above has to do with its intersection in investments and all of the fraud, malfeasance, mismanagement and just downright stupid shit that has gone on over the last dozen years or so. I’m not one to suggest waiting till everything is rosy again, but I believe that, good times or bad, a deal either pencils or it doesn’t. You see that often enough even on this board with poorly informed or poorly educated “investors” prattling on about some “great” deal with huge “upside” and its nothing but a joke.

Still a lot of pain out there for the unready or unwise.

[Allan from Fallbrook]

If memory serves, all of Andersen got retired, didn’t they? That whole Enron (Global Crossing, Tyco, Adelphia, etc) debacle should have been a clarion call across the board for government, banking, finance, and law regarding regulation and oversight. Sadly, we were given SarbOx as a palliative and then back to business as usual.

My point with the above has to do with its intersection in investments and all of the fraud, malfeasance, mismanagement and just downright stupid shit that has gone on over the last dozen years or so. I’m not one to suggest waiting till everything is rosy again, but I believe that, good times or bad, a deal either pencils or it doesn’t. You see that often enough even on this board with poorly informed or poorly educated “investors” prattling on about some “great” deal with huge “upside” and its nothing but a joke.

Still a lot of pain out there for the unready or unwise.

[clearfund]

“…a deal either pencils or it doesn’t.”

That is the best statement of all.

Recently submitted, what I felt to be realistic, and offer of $1.8mm on a 1st TD with a balance of $6mm secured by a 40k sf office bldg in Scottsdale, AZ.

Banker was aghast at my offer and told me to get out.

After that I asked him his view of rent/vacancy/expenses/ti/lc/etc and he agreed with every one…run the calcs and bam, $1.8mm…

He apologized for yelling obscenities, but still couldnt’ get the board to entertain my all cash, 5 day close offer.

Told him I’d see him in a few months when no one else would buy it either…and so it goes…

[clearfund]

“…a deal either pencils or it doesn’t.”

That is the best statement of all.

Recently submitted, what I felt to be realistic, and offer of $1.8mm on a 1st TD with a balance of $6mm secured by a 40k sf office bldg in Scottsdale, AZ.

Banker was aghast at my offer and told me to get out.

After that I asked him his view of rent/vacancy/expenses/ti/lc/etc and he agreed with every one…run the calcs and bam, $1.8mm…

He apologized for yelling obscenities, but still couldnt’ get the board to entertain my all cash, 5 day close offer.

Told him I’d see him in a few months when no one else would buy it either…and so it goes…

[clearfund]

“…a deal either pencils or it doesn’t.”

That is the best statement of all.

Recently submitted, what I felt to be realistic, and offer of $1.8mm on a 1st TD with a balance of $6mm secured by a 40k sf office bldg in Scottsdale, AZ.

Banker was aghast at my offer and told me to get out.

After that I asked him his view of rent/vacancy/expenses/ti/lc/etc and he agreed with every one…run the calcs and bam, $1.8mm…

He apologized for yelling obscenities, but still couldnt’ get the board to entertain my all cash, 5 day close offer.

Told him I’d see him in a few months when no one else would buy it either…and so it goes…

[clearfund]

“…a deal either pencils or it doesn’t.”

That is the best statement of all.

Recently submitted, what I felt to be realistic, and offer of $1.8mm on a 1st TD with a balance of $6mm secured by a 40k sf office bldg in Scottsdale, AZ.

Banker was aghast at my offer and told me to get out.

After that I asked him his view of rent/vacancy/expenses/ti/lc/etc and he agreed with every one…run the calcs and bam, $1.8mm…

He apologized for yelling obscenities, but still couldnt’ get the board to entertain my all cash, 5 day close offer.

Told him I’d see him in a few months when no one else would buy it either…and so it goes…

[clearfund]

“…a deal either pencils or it doesn’t.”

That is the best statement of all.

Recently submitted, what I felt to be realistic, and offer of $1.8mm on a 1st TD with a balance of $6mm secured by a 40k sf office bldg in Scottsdale, AZ.

Banker was aghast at my offer and told me to get out.

After that I asked him his view of rent/vacancy/expenses/ti/lc/etc and he agreed with every one…run the calcs and bam, $1.8mm…

He apologized for yelling obscenities, but still couldnt’ get the board to entertain my all cash, 5 day close offer.

Told him I’d see him in a few months when no one else would buy it either…and so it goes…

[CA renter]

[quote=pri_dk]CAr – I didn’t mean you and my apologies if it came off that way.

I was referring to the poster who has been a Pigg member for less than a week.[/quote]

Thanks, pri_dk. 🙂

[CA renter]

[quote=pri_dk]CAr – I didn’t mean you and my apologies if it came off that way.

I was referring to the poster who has been a Pigg member for less than a week.[/quote]

Thanks, pri_dk. 🙂

[CA renter]

[quote=pri_dk]CAr – I didn’t mean you and my apologies if it came off that way.

I was referring to the poster who has been a Pigg member for less than a week.[/quote]

Thanks, pri_dk. 🙂

[CA renter]

[quote=pri_dk]CAr – I didn’t mean you and my apologies if it came off that way.

I was referring to the poster who has been a Pigg member for less than a week.[/quote]

Thanks, pri_dk. 🙂

[Author]

Posts