Appraisal Matters

I get calls every day from commercial property owners, especially marinas, who are in trouble.  They are close to foreclosure or very near a balloon payment that they will not be able to pay or refinance.  They are upside down.

There are things that can be done to minimize loses and even save a property.  It appears that owners are just stuck in limbo.  They know they need advice as to what to do, but they just don’t really want to know.  Also, they don’t want the spend the money even if they have it available.  So they wait and wait and soon it will be too late.

Find out how much your property is work.  Really know if that “paper” development is worth anything.  Find out if your lender will work with you.  Just sitting there doing nothing will result in a loss…guaranteed.

There is a lot an appraiser can do as a consultant to help negotiate a more favorable outcome with the lender.  Having someone with knowledge and experience helps more than you know.  It is painful to find out that you may have made a “mistake” based upon data from years ago.  Everyone has done it.  Even large successful investors get caught by cycles.  Find out your options, hire an attorney, get good financial advice about property values and the feasibility of your projects.

The lender will find you sooner than you want and any market recovery will not be fast enough to help.  Action is the key.

Eileen Simpson