Luxury Real Estate Attracts Workout Specialists
Many forecasters have begun to look at troubles in the high end/luxury real estate segment of the market and see large troubles with lack of liquidity and declining demand. This has already affected many high end property owners and is leading to an increased risk of foreclosures and short sales.
Donna Lee Laue, CEO of Unique Global Estates (UGE) discussed her organization’s response to this challenge by pairing the high end sales professionals of Unique Global Estates with high end highly liquid investors to create an opportunity for illiquid homeowners to be bought out by high end investors. Sales professionals who participate in the program are referred to as Ambassadors.
Some Components of the program include:
• Partner agents who are going to lose their listing to foreclosure can bring them to the Ambassador and the Ambassador can submit to us. The agent then would receive 50% of the co-listing with the Investor Group as principal, and they would have about a two week period of knowing what the new greatly reduced price will be.
• Before the IG (Investor Group) purchases the property, all loans against the property will have to be satisfied – the owner will not be slapped by collection agencies who have the 2nd, 3rd, etc. as is happening in short sales done by individuals or by agents themselves. Less E & O exposure for the agent - good for the brokerage. And good for the future relationships with the client.
• Prices will likely be lower than any other short sale due to the fact that our IG has history with the financial institutions and huge capital. They put their virtual elbows on the desk with the decision makers and …write the check. We know this will ‘re-set’ the luxury real estate market, but it has been re-set anyway and will never be the way it was.
• UGE’s goal is to get our Ambassador’s ahead of the curve, treat their clients with dignity and white gloves, get them out from underwater in the best shape possible and get our Ambassadors paid. It’s a total win-win.
