The entity purchasing it has to think they can get the asking price for it.
The bank will not take the risk acquiring it unless they think they can actually sell it for that.
So if the bank thinks they can actually sell it for $2 million and it is selling for $2 million, you’ve just described a $2 million property.
What I’m telling you is that those buyers disappear at any large scale because buyers of buildings like that need ROI. It’s only in really hot markets where deep wallet flippers will tolerate taking a bet on a building that cannot generate revenue to support the note.
What you linked to is a rare case. It doesn’t happen at scale because the system doesn’t close.
The bank will not take the risk acquiring it unless they think they can actually sell it for that.
So if the bank thinks they can actually sell it for $2 million and it is selling for $2 million, you’ve just described a $2 million property.
What I’m telling you is that those buyers disappear at any large scale because buyers of buildings like that need ROI. It’s only in really hot markets where deep wallet flippers will tolerate taking a bet on a building that cannot generate revenue to support the note.
What you linked to is a rare case. It doesn’t happen at scale because the system doesn’t close.