Post on 29-May-2015
transcript
Symphony Property Auctionsin conjunction with HMM Company
The Valuation Experts60 years of Experience at your Service
What can we do for you?
Institutions are uncertain as to asset value due to: The Economic environment. The Credit crisis.
Assets need to be liquidated: Quickly, Efficiently, And with an eye towards maximizing value.
Auctioning properties and loans has proven to be an effective way to target appropriate qualified buyers.
Why Choose Symphony/HMM? Symphony/HMM professionals have over 60 years of combined
experience:
Real Estate valuation expertise. Investment Sales background. Legal & Title experience. Expansive network of contacts nationwide in all sectors.
You need an effective marketing organization that has the capability to:
Place an appropriate value on your assets. Organize a targeted effective marketing plan. Implement an appropriate accelerated marketing strategy, e.g., sealed bids,
oral outcry auctions, hybrid strategies, request for proposals, etc.
Who is Symphony/HMM?
HMM is a company owned by Howard Ervin, CCIM, an approved minority owned business enterprise. Howard spent five years with Marcus and Millichap before becoming associated with Symphony.
Symphony Auctions principals are Eric Kaufman, licensed auctioneer and real estate broker, with over 25 years of property valuation, sales, auctions, sealed bids and hybrid sales structures and David Kopp, with 20 years of solid real estate experience and property due diligence compilations.
Brian McCarthy, Esq. is affiliated with Chicago Title Company a large and well respected Title Company. Brian is involved with new business development, legal and title issues.
Property Appraisals, if necessary, are performed by Joel Leitner, MAI, CRE, FRICS.
Bios
Howard Ervin – has a bachelor’s degree in Business Management from North Carolina State University (Graduate Class – 2001). Following school, Howard moved to Washington, DC and was employed by Costar Group – the largest commercial real estate information firm in the United States. Shortly after working with Costar Group, Howard was recruited to become a commercial real estate investment broker with Marcus & Millichap Real Estate Investment Services. After five years with Marcus & Millichap, as a Senior Associate, he became aligned with Eric Kaufman and David Kopp of Symphony Property Group. Howard has achieved a Certified Commercial Investment Member (CCIM) designation from the CCIM Institute and is an active member in the organization.
Eric Kaufman - Wharton MBA ‘79 – Kaufman spent several years in the 1990’s liquidating work out assets for various institutions in his stint as the #2 man with the Carlton Group, Ltd., which has become a multi-billion dollar debt and equity provider for commercial real estate. His successful career includes experience as a developer, broker, financier, advisor and asset manager over the past 28 years. He is a licensed auctioneer and real estate broker. See www.welbiltrealty.com and www.symphonypropertygroup.com for more detailed information.
Bios (Continued)
David Kopp – Analytical background including proficiency in financial modeling and real estate work-outs (including ARGUS) and presentations. Significant IT skills including Sharepoint websites to assist in the marketing and compilation of due diligence for assets held for accelerated marketing sales.
Brian McCarthy, Esq. – B.A., Villanova University, '86; J.D., Touro School of Law, '90; Commercial real estate attorney and title industry counsel and sales executive. Brian will focus on both legal and new business development activities.
Joel Leitner - MAI, CRE, FRICS -- Joel has over 20 years of experience in real estate valuation, investment analysis, and consultation on a national basis for a wide range of applications including market value appraisals, property portfolio consulting and management, investment advisory service, valuations and consulting studies for securitization-equity based and mortgage-backed transactions, purchase price allocations, liquidation sale valuations, condemnation, tax reduction, estates, and expert witness testimony for litigation. These activities have been conducted on behalf of foreign and domestic investment firms including major industrial corporations, leading foreign and domestic financial institutions, individual investors, leading law firms, and government agencies
More complete resumes available upon request. Management Team references available upon request.
How we organize your assets? Broker Price Opinions of Value are initially
established.
On-line “war rooms” are established to organize due diligence materials effectively and efficiently (hard copy of due diligence materials are available for investors that are not computer savvy).
Auctions are conducted either on-line, on site or in a ball room setting.
Why are assets auctioned? Financial need to raise cash relatively quickly:
Foreclosure. A non-performing asset. Bankruptcy – either Chapter 11 or Chapter 7. Bank owned real estate (ORE or REO). Distressed Property Condition. Environmentally impacted properties. Properties that need to be sold on an “As Is, Where is”
basis.
Relationship between the Seller and Auctioneer
An auctioneer is an agent of the Seller and has:
Fiduciary Duties to the Seller. Obedience to the Seller’s wishes. Full Disclosure to the Seller. Diligence when acting on the Seller’s behalf. Full accounting to the Seller. Loyalty to the Seller.
Very similar to the Real Estate Broker model of Good Faith and Standard of professionalism to the Seller, even if getting paid through a buyer’s premium.
Accelerated Marketing Programs
Open Outcry vs. Sealed Bid Auctions.
Hybrid/Structured Sales.
Dutch/Reverse Auctions (Decreasing prices) vs. English Auctions which are increasing prices.
Absolute Auctions vs. Minimum Reserves.
Buyer’s Premiums and their purpose.
Auction Strategies
Published vs. Unpublished Reserves.
Multi-parcel vs. Single Asset sales.
Bidder’s Choices.
Use of the Internet (e.g., Streaming video live auctions vs. the Ebay style of internet bidding).
Timed bidding (The 2 minute rule).
Having realtors bidding on behalf of purchasers.
The Marketing Plan
Print Publications (Newspapers, Magazines, Trade Publications).
Public Relations (Gets the message out).
Signage (Where appropriate).
Telemarketing (Direct contact to prospects).
Direct Mail (Targeted mailing lists often by zip code).
Internet email blasts and banner ads.
Typical Auction Time Table
Initial Planning Meeting, Negotiate Service
Agreement, prepare marketing message and
promotion schedule (Week 1)
Compile Property Due Diligence Information
(Week 1)
Draft Brochures and Ads (Week 2). Client update Conference
Call on a weekly basis.
Submit Press Releases (Week 3)
First Newspaper Ads Break (Week 3)
Email Blast (Week 3)
Internet Banner Ads (Week 3)
Direct mail campaign (Week 3)
Open Houses (Week 4)
2nd week of Print Ads (Week 4)
Email Blast #2 (Week 4)
3rd week of Print Ads (Week 5)
Email Blast #3 (Week 5)
4th week of Print Ads (Week 6)
Send Reminder Emails
(Week 6)
Follow up calls to most qualified
prospects (end of Week 6)
Auction begins (Week 7)
Open Escrow (Week 7)
Escrow Tracking and Closing Procedures
Closing
The Auction Services Agreement
Exclusive Right to Sell Property Identification Place of Sale Time and Date of Sale Terms of Sale (Reserve Price, Absolute
Auction or not) Marketing Expenses Auctioneer’s Duties and Obligations
Seller’s Duties and Obligations Seller’s Representations (if any) Auctioneer’s Fee/Buyer’s Premium (if
applicable) Co-operation with Outside Brokerage
Firms Defaults/Terminations Exclusive Tail in the event the
property does not sell at auction Arbitration provision
Components for a Successful Accelerated Marketing Campaign
Purchaser
Qualification
Hard Money
Deposit
Effective Use
of Stalking Horses
Non-contingent Offers
Date Certai
n Closin
gs
Proper Title
Insurance and
Indemnifications
Analysis of an Auction vs. Conventional Sale
Date Certain Closing.
Helps plan out cash flow
needs.
Analysis of an Auction vs. Conventional Sale
Qualified Bidders
and Hard Contract Deposits
Buyers have
incentives to close or will lose
their deposits.
Analysis of an Auction vs. Conventional Sale
“As Is, Where Is” sale.
No financing or inspection contingencies
which can delay or cancel
potential closings.
Analysis of an Auction vs. Conventional Sale
Competitive Bidding Environm
ent.
Outcry auctions can help increase
pricing through emotional and ego
demands placed upon buyers
through the exciting environment of an
auction.
Analysis of an Auction vs. Conventional Sale
Dynamic
Marketing
Exposure
Through the various marketing strategies
developed, a property can have much
greater exposure to a greater number of
potential purchasers. This potentially
increase s the number of stalking horse bidders that can
increase the bids of the winning purchaser.
Analysis of an Auction vs. Conventional Sale
Seller can
control the
marketing
process.
By having accelerated marketing
techniques, the seller indicates to
the market that they truly want to trade
an asset and can control the closing
date better and more efficiently.
General Terms and Conditions for an Auction Sale
Property Identification.
Deposit Amount.
Buyer’s Premium.
Bidding Methods/Resolutions of Disputes.
Auction Terms.
Information re Reps and Warranties and/or other disclosures.
Auction Terms and Conditions (con’t)
“As Is, Where Is” sale disclaimer.
Non-contingent offers only.
Title to the property will be free and clear of liens (Need effective title insurance).
Payment terms including handling closing costs.
Remedies.
Indemnifications.