REO's and the world of Commercial Real Estate

As a current member of a Commercial real estate team and an eight year background in Residential real estate...I wonder how the world of REO is going to effect agents who are currently specialize in Residential REO's, but want to venture into the Commercial side of REO.

Do residential agents want the commercial REO's? And if so, are they getting listings from their asset managers?

If residential agents don't want the commercial REO's - where and/or who are those listings going to.

Do assest managers believe that residential agents have the knowledge to sell commercial properties? And do most asset managers have residential and commercial portfolios?

Is there a market for agents that do both residential and commercial? Or is it more effective to have a specialty within one or the other?

Does anybody think teaming up a residential agent with a commercial agent will be a proactive and profitable move for future REO business?

There are so many more questions and comments to make regarding this scenario that I can't mention all of them at this time. We are in a volatile and daily changing market that predicting the future based on history seems futile.






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Comments

  • Investors still need to get paid on their purchase of the discounted notes. Those investors will either try to workout the new loan with the owners or forced to foreclose on them. Hopefully these investors are savvy on foreclosure process. In my realm, I've seen lenders take over the property and hire property management companies to run the hotels. This is a niche that is growing as well, hotel PM, and contracts are flying like crazy. These lenders will want to get off the books eventually.
  • I highly doubt there is going to be any significant Commercial REO. It won't actually reach the REO stage. Lenders are going to sell the NOTE to Investors long before they take back the property.
  • Ideally a commercial broker with REO experience would be the first choice. If that is not possible then commercial broker partnering with experienced REO broker, or team approach, where some members of the team have experience in either. I don't think the commercial REO's are going to be at the high level some expect. Many of these loans were made at the local level by S&L's and they can modify when it's time for resets.
  • Johnny, thanks for your input. Staying with your niche is powerful and helps with potential clients from past contacts. This is part of the reason why I transitioned to commercial. I have a background in Tenant Coordination and this specialty has helped me with the language of the commercial world.
  • I've made the transition from residential to commercial, however, I've stayed within my niche....HOTELS!

    Reason for this is because my background before real estate was in hotel operations and management. I've very comfortable in providing potential buyers and sellers the information and advice in order for them need to move forward. Plus it also helps to tap into my past network for potential leads.
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