A bank forecloses on a developer or landlord for some reason
They then obviously have to recoup as much value as possible, so they place it with an auction house or broker and it says something like this:
10 apartments
All rented
Gross income 100k
Yield 10%
Offers in excess of 1m
Now, a 10% return in London is insane given the best is probably 2-3%, so they are obviously looking for a number in excess of the 1m
How would you determine a sensible number?
They then obviously have to recoup as much value as possible, so they place it with an auction house or broker and it says something like this:
10 apartments
All rented
Gross income 100k
Yield 10%
Offers in excess of 1m
Now, a 10% return in London is insane given the best is probably 2-3%, so they are obviously looking for a number in excess of the 1m
How would you determine a sensible number?