Investors Are Walking Away From $100 Million in Personal Guarantees

0:03You mentioned earlier that you're interested in getting it back into the multifamily. We're just not, at least in our markets, that we pay attention to. We're just not seeing enough blood in the streets yet. It's definitely getting there. What we're seeing more is a lot of the money is going into small bay flex industrial space. That seems to be the multifamily from four years ago, five years ago. So that's kind of where we're seeing a lot of the money starting to get repositioned to. But as far as multifamily, we're not excited yet. We will be, I think, in about two years. I think that some of the John Latere isn't up are drinking the blood before most people see it.

0:37I think sometimes they're getting the view of that first from the big banks and just taking down those with terms that are like amazing. And if you have tons of capital and you can be in first position on an asset and low LTV and the bank doesn't want to foreclose on it, then the John Latere isn't up are just chugging that blood before most people get to see it, I think. It's like some of what's happening. So we allocate, one second, we allocate to operations. So we'll see a lot more deals, right, instead of just ourselves. And so I had a friend call me. This was at the end of last year. And smart guy.

1:15I couldn't believe what he was telling me. He walked away from$22 million. He had a PG he didn't want to have, right? I've seen 10 million people walking away from 10 million, 15 million. The largest was one of our partners looked at a portfolio, and the owners were going to walk away from$100 million. So it's just a matter of, and I think the banks have been extending a little bit, but now they're stopping that. Do you guys agree with that? I totally agree with that. We're seeing the bid-ask spread on a lot of these assets that the bank has held, or they're pushing the can down the road for years.

1:51They're not foreclosing. They are finally coming to the realization that rates are still high. there's not going to be stay alive to 25 it's already 26 so uh you know you have you have a lot of the you know these banks coming to you know all right we have to get rid of this asset and some of them don't even want to take it you know john and i were we know the new york city market well and i know operators that have hundreds of units the banks don't want it they do not want it because it's stabilized and you've got a mayor that is now going to weaponize the dob and hpd so they're really like we don't even want it back i was talking to one of my somebody just i think yesterday the day before and there's an office building here and the owners actually sold 50 of the building for 800 million and so they took a cut of 600 million because they couldn't service the debt right and their debt came due hi i'm richard c wilson our community has closed over$1 billion of transactions.

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