Happy Friday! 105 Contracts Signed
Good Evening All! Please see link below for updated information on signed units.
Assemblage Update
I hope Everyone had a wonderful Thanksgiving and enjoyed the beautiful weather. Presently we have contracts still unsigned. We have made contact with ALL remaining unsigned owners and provided them with any and all information possible. Nobody has said “NO” to signing their contracts with the assemblage. Not a single person. All remaining individuals are fully aware of this opportunity. We have spoken with all of them. If we aren't in receipt of signed contracts by the remaining unit owners by 5 PM on 1 December 2017 they will be counted as a "NO" to signing with the assemblage. If we receive an official "NO" from any of the unsigned unit owners the assemblage team will update the blog immediately informing everyone that the assemblage is incomplete, and the deal is off. We encourage all of you to please speak with your neighbors about the importance of this deal. The property is worth approximate...
It would be nice to have the, who's left format, too. If those people aren't reading the blog, they won't care, and if they are, maybe we can change some hearts and minds.
ReplyDeleteThank you to everyone who has signed. Let's keep going to get to 100%!
Or, put in a different way, 27 units still have NOT signed three weeks into the process. Yeah, I know I'll hear "remain positive, we have 105 on board", but the reality is that after all the compelling arguments made about the future of the building and the financial impact it will have on us all that remain here, 20% are still NOT on board. 20% of the building is not yet convinced enough to have signed off on the only guarantee we have to be able to get out of a ticking time bomb. It is actually a great gift to have a solution to our future here that will have deep negative financial repercussions for us all. THAT'S the reality, the writing is on the wall. Sorry I can't feel but underwhelmed that only four contracts were sent in a week. And yes, I have been speaking to everyone I can to get my arms around the issues that are holding some back. The contributions on the blog have been very informative and factual. It feels like we have an uphill climb from here.
ReplyDeleteI agree. Only 4 in a week is very disheartening. If you are just taking your time or waiting to see if the others are going to sign please don't. That was my original train of thought and then I realized if everyone thinks the same way there is no way it can get done.
DeleteI am also trying to come to grips with the possibility that it doesn't happen, but am not giving up hope!! I think we all realize that it wasn't going to be an easy climb. It is an emotional as well as a financial decision for some. We do have the good fortune of not having to leave the property for a year, and I would rather have the problem of figuring that out than how will I be able to afford to stay at SOBU?
ReplyDeleteI think there are two factors at work here. 1. Some people just like to wait till the last second to do anything and 2. If you say a conference call might last an hour that thing will last at least an hour.
ReplyDeleteThe reality is we have a developer with CASH wanting to close RIGHT NOW. Let's get these things signed early and get closing.
"Are you crazy? A man in a really nice camper wants to put our song on the radio! Gimme a pen, I'm signin'! You're signin'! We're all signin'!"
Dear Holdouts,
ReplyDeletePlease hurry up and sign. You're giving us all heartburn.
And, to cover my bases if you choose not to take this deal, I'm calling my accountant on Monday to see how LOW I can sell as an individual. Yes, it will lower your property value as a comp. And, it lower it because whoever buys won't have extra money when things break. There are many better places to live and I'll have to compete with them.
This isn't a get rich quick deal, this is an avoid bankruptcy deal.
Please sign.
This is not, contrary to what some may think, a get rich deal. It was a good investment for me for the time I have lived here (over 13 years) because I was able to write off the interest on my mortgage and it was a good location and I enjoyed living here for the most part for that time. It will have proven to be a good investment (although, like most, that was not my motivating reason for buying here - I loved the location and building) IF the building sells at the current offer. I will, like ever one else here, be getting above market price for a distressed property. How fortunate are we for that? I am not making out like a bandit but have the opportunity to take that money and put down on another place in a neighborhood I like WITHOUT the worry of the expense of the minimum upkeep, like running water, a roof over our heads and working elevators. WITHOUT the worry that the property becomes insolvent. AND I have a year to make that move. I know there are some at Sobu that have bought property here as an investment, and God bless you for that, nothing wrong with it. For those of you, I say a smart investment decision would be to take the offer, not matter what the reason that you purchased here. Think about what will your individual unit or units be worth a year from now? Two years? A betting person would say that the odds are NOT in favor of the property ever getting another opportunity like this in the near future OR of the value going up. On the contrary, odds are for the opposite being true. And if you planned on being here for retirement, then realize your out of pocket costs for continuing to live here will only go UP. Weighing out the pros and cons, and there are some of course - moving is a stressful as is finding the right place, etc;. But when you realistically weigh it out the pros of selling are much higher than the pros of not doing so.
DeleteI live in a corner unit with a great view and a quite floor. I have spent money over the years remodeling my unit to where I enjoy being in my space. I have been fortunate not to have experienced leaks, caved in ceilings, window casement problems, etc;. I have not had my car broken into or have had packages stolen or worried about my safety in the neighborhood as many of my neighbors have. But I also realize that I am part owner of a building that is in need of some serious TLC. And it will cost.
This is my first and last post, but had a lot to say. Apologies for the rambling and thanks for reading if you made it this far. I am impressed with the level headed posts that address the emotional and logical aspects to the decision making process. I am hopeful that the right choice will be made.
Question for the experts. If an owner bought their 410 square foot unit for $ 83,500 in April of this year and put have around $8000 in renovations. Are they recouping that investment+ some with this deal?
ReplyDeleteHello Terry,
DeletePlease examine the spreadsheet. The spreadsheet clearly details the amount with which you'll walk away. If you stay stay here, you will never recoup your investment after the HOA goes bankrupt. This is not a scare tactic but a reality and legacy left by the developers who converted this property to condos in 2001.
Can Fulton County Tax Assessors collect back property taxes on a unit that is reporting their square footage as 100s of square feet less than it actually is??
ReplyDeleteYes terry...you paid 83500 and put in 8,000. You essentiallly have 91,500 invested. The person interested in your unit is offering 117,937. He plans to charge one year rent that brings you down to 100,564. You will pay 6% commission on the 117937 which equates to 7076. Subtract that from 100564 and you have 93488...a profit of $1,988. Sub lease your unit for the year for $800 a month inclusive of utilities and pocket another $9,800. You will not owe a bank interest, you will not be responsible for any issues if something breaks, you will not have to pay next years taxes. You profit almost $12,000 In less then a year.
ReplyDeletePlus you have no HOA fees for a year, which represents $500+ a month. For me not having that burden is an extra $6500 for the year!
Deletei know someone currently renting their studio unit for $875 month
DeleteI just confirmed with Josh and Shawn that the "net to seller" on the spreadsheet already includes the 6% commission. That is amount you walk with after the lease back payment and commission, that is the amount you pocket. So on your example above the you have deducted the 6% commission twice. Adding the commission back in makes for a profit of $9000, not $1988.
DeleteI would say a good return on investment if those numbers are true.
DeleteNumbers are accurate - the $100,564 minus the $91,500 the person has invested in the property equals $9.064. The net to seller has the commission and lease back subtracted already.
DeleteAn amazing investment if we sell the building. A very poor investment if we don't. It doesn't get more straight forward than that. I wonder why this person won't sign?
DeleteIf the spreadsheet doesn't show that the 6% commission and the leaseback amount is already subtracted from the Approx Net to Seller then that's a problem. That information needs to be included and the owners who haven't signed yet need to know this. Can the spreadsheet be updated and resent?
DeleteTrue. If some are going under the incorrect assumption that they have to pay the 6% out of the "Net to Seller" it doesn't surprise me that some are reluctant. The "Net to Seller" is exactly that - the check you get at closing - with all costs factored out already - lease back and the commission.
DeleteAlso - If you've lived in your unit for at least two of the last five years, you can pocket up to $250,000 in profits tax-free; $500,000 for couples filing jointly. Anything over that, you'll pay capital gains taxes. For assets owned less than a year, you'll pay taxes at your regular tax rate. So, a great number of us would not pay taxes on the sale.
I too am at a lost as to why some will not sign. However, I am increasingly aware of two issues: 1. The information about how much money people will garner as result of sale needs to be made crystal clear. In some cases, some may believe that they are being shafted. Those that feel that way are new owners and non resident owners.
ReplyDeleteFor the new owners, you will get shafted if you do not accept this offer at this time. You should take a moment to critically think about the situation and the potential situation going forward. If you need a drill down, many who have already signed can meet with you to discuss.
For those who are on a power trip, I hope you don't end up screwing yourself while you attempt to screw others.
For both groups, the reasons that many delineate for selling are not scare tactics. The reasons are reality. Please talk to those of us who have lived here since the opening of this renovated property and we will gladly fill you in. Talk to many to see if all stories match.