I can almost bet that your low-ball offer is nowhere where it would need to be in order for this person to just walk away.

And, if you're betting that inflation will eventually kick in at some point and rents will go higher, nothing will do better for appreciation than multi family.

But if its commercial, all bets are off.

I'd bet the "They bought the call option that is now worthless" and "Too freaking bad" approaches taken by investors engaging in deals like this is why that law exists.I'd bet if you said to these buyers "you bought a call option that's now worthless" that they would look at you with the deer in the headlights look.Having said all of that you likely shouldn't have sold them an option to start with because the investment is not suitable for unsophisticated buyers.

This means it is shared loss/gain proposition and you assume potential liability for any losses including legal issues that may arise.Essentially, your betting that your operating partner has the skill and experience to find, rehab, and manage the property.

I think my best bet is to go retail here.

I think you're going to have a very hard time finding any bank willing to do a purchase loan based off the appraisal value.Not unless you have a ton of money in the bank.I have a friend that is buying some condo units cash and his local bank told him they would refi them up to 80% LTV with NO seasoning.Now he also has over 500k in the bank too so its pretty easy for them to have a comfort level.You're best bet to tie up as little money as possible isto buy with hard money and then refi rate and term after 6 months.

If you go with the school of thought of keeping high LTVs you're betting that interest rates won't change much (what went down will go up).

Your best bet is to contact the asset manager and not BONY Mellon.

I'd bet he moved in a poor lease-option tenant and may be trying to pass his problems on to someone else.