Tired landlord wants out... of 32 homes! How to talk to the bank?

[Karen Adams]

We found a tired landlord with 32 individual rent houses around town. Some are multi-family, many are section-8, most are currently rented and CASH FLOWING (plus EQUITY from our discounted price)! Each has its own commercial loan.

One (local) bank has 8 of the loans and is foreclosing (landlord's partner apparently made off with some dough).

We have all 32 under contract and can wholesale any of them, but for the 8 going to foreclosure (May 20!), what's the best tactic in dealing with the bank?

How do we convince the bank that letting us A) short sale these or B) buy the notes at a serious discount, is a good idea? We want to provide a compelling case to the bank, and they've been firing their hi-pay employees and moving the minions up in the ranks, so it'll probably require kid gloves to avoid the appearance of "stepping on toes".

Ideas?

[Don Konipol]

Explaining the advantages of your discounted offer to the lender will not work and only lead to frustration. The lender is not an unsophisticated seller that needs to have the benefits of an offer explained. The banks decision to accept, reject or counter your offer will depend on two factors. One is the impact on the bank of accepting your offer versus foreclosing, i.e, on profitability, on regulatory compliance, on the stock price, etc. The second is the impact on the careers of the bank employees making the decision. Do yourself a favor, make an offer that is beneficial to yourself as well as the lender and let the pressure be on the lender to respond.