Who controls the asking price?

I can only talk about the projects I have been involved in. My experience may not be typical, because by and large I got hired by the bank before doing any sort of marketing pitch (of the project), but rather just a marketing pitch of myself. Today, you may have several firms going in to make a pitch to one, some or all of the parties involved of how they intend on marketing the building differently and repositioning it, yada, yada, yada.

In any case, there wasn't a separate broker and marketing person, just me. Then you have the developer (or in some cases someone who bought out the original builder) and the bank. Anyway, in most cases, I set the prices and then the developer and the bank negotiated their arrangement of how much of a haircut the bank would take vs. what the developer would get. But in all my cases, it wasn't exactly described as above, because the developer wasn't totally gone ("eliminated from the equation"). This wasn't something I chose, it's just the way it was. And in most cases it made negotiating more difficult, because I needed to get approval on any deal s from BOTH the developer AND the bank. But pretty much I was the one who set the prices, and the developer got the bank to ask more than I had set on some units, and almost always those ended up selling last, with a price cut.

30 year, Personal experiences always invaluable. My own experience is that for price decrease lender approval is required.

"30 year, Personal experiences always invaluable. My own experience is that for price decrease lender approval is required."

Yes, but I think in the instant case the question is whether or not sponsor approval is required. The article seems to indicate that in the cases it is talking about, the sponsors have become total phantoms.

so...what do you think? any lenders ready to bring you in yet? i know some people who work in bankruptcy...putting aside some of the human agony ( not to be crass ) it has always sounded fascinating and of course quite lucrative.

Unfortunately MANY of my old contacts are among the downsized and even the bankers are believing that you need big firms to sell, so I don't know how much biz I'll get this time around (unless something happens which often does: the banks act like banks and screw things up, and then someone gets smart enough to ask the hard money guys what they should do and then my phone rings).

Also, with the way Obama is talking (and fed funds are flowing), I'm not sure if banks are ready to take the haircuts they may need to take if things head South in a hurry. And the WORST thing to be is the first broker in while a seller is still unrealistic about what they are going to get.

OTOH, if any of you attorneys (or spouses of such) need an expert witness or someone to feed you info to deal with your banking clients, I've got free time on my hands.

30yrs, not my husband's area, although his areas seem to be expanding these days. but his firm might be interested in a presentation if you have one available (haven't chatted with him, he's already off to Europe, but he's pretty open to new ideas). he has mentioned how corporate attorneys are being utilized, for example, in litigation because the litigators need their expertise (such as it is) in the
various securitization issues. my husband always joked that the bar review course was for those who didn't take or absorb either family law or secured transactions.

anywho, aboutreadyse "@" gmail.com.