Comments on: Terrazzo Re-Prices 30 Condos at Auction Rates http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/ Grant Hammond, Broker, ABR, SFR, Multiple Award Winning Broker Fri, 10 Feb 2012 21:18:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Restoring Terrazzo Floor http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-1839 Restoring Terrazzo Floor Mon, 04 Apr 2011 10:53:00 +0000 http://www.granthammond.com/?p=2313#comment-1839 This site has lots of extremely useful information on it. Thank you for sharing it with me! This site has lots of extremely useful information on it. Thank you for sharing it with me!

]]> By: The West End Condos Auction Results | Nashville Condos http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-805 The West End Condos Auction Results | Nashville Condos Thu, 14 Jan 2010 05:58:27 +0000 http://www.granthammond.com/?p=2313#comment-805 [...] Terrazzo Re-Prices 30 Condos at Auction Rates [...] [...] Terrazzo Re-Prices 30 Condos at Auction Rates [...]

]]> By: Falcon2 http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-704 Falcon2 Thu, 03 Dec 2009 03:35:14 +0000 http://www.granthammond.com/?p=2313#comment-704 I think your insight is probably correct about this auction. And if it<br>goes badly I think it's likely that there will be a foreclosure which<br>probably leads to another better organized auction or good buying<br>opportunity anyway. Dry powder rules in 2010. I think your insight is probably correct about this auction. And if it
goes badly I think it's likely that there will be a foreclosure which
probably leads to another better organized auction or good buying
opportunity anyway. Dry powder rules in 2010.

]]> By: Will http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-703 Will Thu, 03 Dec 2009 03:29:49 +0000 http://www.granthammond.com/?p=2313#comment-703 I assume that most investors (who know what they are doing) will read them. I do think that a lot of first time purchasers (like myself) will not.<br><br>All in all, given the fairly creative/strange/restrictive/open to abuse by-laws, the strange financing arrangements (Compass won't do loan commitments, only pre-qualifications - which means bidders are risking 5% of the purchase price with no way to assure financing), and the strange lack of information flow on reserves and which units are absolute, I am getting pretty nervous about bidding at this auction.<br><br>Any potential buyer is basically agreeing to risk 5% of the purchase price and to agree to a HOA agreement that seems fairly limitless in potential liability/assessments, all for the chance to get a good price on a condo project that appears to have failed as a revenue model. The more I think about it, the more I seem to be talking myself out of it.<br><br>But, I do like the units and the location is convenient. This may be a day of the auction call for me on whether it is a worthwhile venture, even at a discounted price.<br><br>Will I assume that most investors (who know what they are doing) will read them. I do think that a lot of first time purchasers (like myself) will not.

All in all, given the fairly creative/strange/restrictive/open to abuse by-laws, the strange financing arrangements (Compass won't do loan commitments, only pre-qualifications – which means bidders are risking 5% of the purchase price with no way to assure financing), and the strange lack of information flow on reserves and which units are absolute, I am getting pretty nervous about bidding at this auction.

Any potential buyer is basically agreeing to risk 5% of the purchase price and to agree to a HOA agreement that seems fairly limitless in potential liability/assessments, all for the chance to get a good price on a condo project that appears to have failed as a revenue model. The more I think about it, the more I seem to be talking myself out of it.

But, I do like the units and the location is convenient. This may be a day of the auction call for me on whether it is a worthwhile venture, even at a discounted price.

Will

]]> By: Falcon2 http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-702 Falcon2 Thu, 03 Dec 2009 02:38:46 +0000 http://www.granthammond.com/?p=2313#comment-702 Good point. Yes, there can be no leasing for some time at the West End and there are also onerous right of first refusal conditions in that same section of the bylaws. Absent a release from these conditions this could make it very difficult for owners to sell their units and, oddly, owners are also agreeing to be assessed for their share of any unit purchase that the HOA decides it may want to make. I wonder how many prospective bidders will even read these provisions. Good point. Yes, there can be no leasing for some time at the West End and there are also onerous right of first refusal conditions in that same section of the bylaws. Absent a release from these conditions this could make it very difficult for owners to sell their units and, oddly, owners are also agreeing to be assessed for their share of any unit purchase that the HOA decides it may want to make. I wonder how many prospective bidders will even read these provisions.

]]> By: Will http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-701 Will Thu, 03 Dec 2009 01:29:02 +0000 http://www.granthammond.com/?p=2313#comment-701 For the sake of clarity about the West End, I do think that there is a lease restriction in the by-laws. I didn't read them closely, but it appears that you cannot lease until the building is 100% sold (Section 12.1). For the sake of clarity about the West End, I do think that there is a lease restriction in the by-laws. I didn't read them closely, but it appears that you cannot lease until the building is 100% sold (Section 12.1).

]]> By: Falcon2 http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-647 Falcon2 Wed, 02 Dec 2009 21:35:14 +0000 http://www.granthammond.com/?p=2313#comment-647 I think your insight is probably correct about this auction. And if it<br>goes badly I think it's likely that there will be a foreclosure which<br>probably leads to another better organized auction or good buying<br>opportunity anyway. Dry powder rules in 2010. I think your insight is probably correct about this auction. And if it
goes badly I think it's likely that there will be a foreclosure which
probably leads to another better organized auction or good buying
opportunity anyway. Dry powder rules in 2010.

]]> By: Will http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-646 Will Wed, 02 Dec 2009 21:29:49 +0000 http://www.granthammond.com/?p=2313#comment-646 I assume that most investors (who know what they are doing) will read them. I do think that a lot of first time purchasers (like myself) will not.<br><br>All in all, given the fairly creative/strange/restrictive/open to abuse by-laws, the strange financing arrangements (Compass won't do loan commitments, only pre-qualifications - which means bidders are risking 5% of the purchase price with no way to assure financing), and the strange lack of information flow on reserves and which units are absolute, I am getting pretty nervous about bidding at this auction.<br><br>Any potential buyer is basically agreeing to risk 5% of the purchase price and to agree to a HOA agreement that seems fairly limitless in potential liability/assessments, all for the chance to get a good price on a condo project that appears to have failed as a revenue model. The more I think about it, the more I seem to be talking myself out of it.<br><br>But, I do like the units and the location is convenient. This may be a day of the auction call for me on whether it is a worthwhile venture, even at a discounted price.<br><br>Will I assume that most investors (who know what they are doing) will read them. I do think that a lot of first time purchasers (like myself) will not.

All in all, given the fairly creative/strange/restrictive/open to abuse by-laws, the strange financing arrangements (Compass won't do loan commitments, only pre-qualifications – which means bidders are risking 5% of the purchase price with no way to assure financing), and the strange lack of information flow on reserves and which units are absolute, I am getting pretty nervous about bidding at this auction.

Any potential buyer is basically agreeing to risk 5% of the purchase price and to agree to a HOA agreement that seems fairly limitless in potential liability/assessments, all for the chance to get a good price on a condo project that appears to have failed as a revenue model. The more I think about it, the more I seem to be talking myself out of it.

But, I do like the units and the location is convenient. This may be a day of the auction call for me on whether it is a worthwhile venture, even at a discounted price.

Will

]]> By: Falcon2 http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-643 Falcon2 Wed, 02 Dec 2009 20:38:46 +0000 http://www.granthammond.com/?p=2313#comment-643 Good point. Yes, there can be no leasing for some time at the West End and there are also onerous right of first refusal conditions in that same section of the bylaws. Absent a release from these conditions this could make it very difficult for owners to sell their units and, oddly, owners are also agreeing to be assessed for their share of any unit purchase that the HOA decides it may want to make. I wonder how many prospective bidders will even read these provisions. Good point. Yes, there can be no leasing for some time at the West End and there are also onerous right of first refusal conditions in that same section of the bylaws. Absent a release from these conditions this could make it very difficult for owners to sell their units and, oddly, owners are also agreeing to be assessed for their share of any unit purchase that the HOA decides it may want to make. I wonder how many prospective bidders will even read these provisions.

]]> By: Will http://www.granthammond.com/2009/condos/terrazzo-reprices-30-condos-auction-rates/comment-page-1/#comment-640 Will Wed, 02 Dec 2009 19:29:02 +0000 http://www.granthammond.com/?p=2313#comment-640 For the sake of clarity about the West End, I do think that there is a lease restriction in the by-laws. I didn't read them closely, but it appears that you cannot lease until the building is 100% sold (Section 12.1). For the sake of clarity about the West End, I do think that there is a lease restriction in the by-laws. I didn't read them closely, but it appears that you cannot lease until the building is 100% sold (Section 12.1).

]]>