In today’s blog I am going to ask that anyone with knowledge of the Preferred Lenders either comment or write to Vuebuyer10@yahoo.com. I have it on pretty solid information that one lender has definitely pulled out, and that others are either not seeing much activity or are having second thoughts. Are you working with a Preferred Lender? Are you hearing anything positive from your Preferred Lender? Or is your lender redirecting you back to the VUE Charlotte for any information on sales?
I would love to report back to our readers that the Preferred Lenders are busy processing VUE Charlotte loan applications and that the sales pipeline is full and closings are on the way. But I simply get no sense of that. The Observer Article again reiterated that normally floors and floors would have been sold by now but currently we are at 2 units closed. The key to understanding how many more are imminent is to know what the Preferred Lenders are saying and doing.
I have spoken to some folks who tried banks outside of the Preferred Lender group and were told their bank wouldn’t touch the project. And how could it be otherwise? Don’t we all wonder why prominent banks like Wells Fargo and Bank of America aren’t seeing the same situation we are seeing…an overpriced building and tenants who fear they are going to lose a fortune by moving ahead with their closings? I said last week that no realtor would dare put someone in the VUE until all these matters get resolved. What about the banks? We need to be asking them the same thing.
MCL has stated that their investors are sticking with the project and they have 3 years of operating expenses ready. My follow-up question to that statement would have been: based on how many units closing in year 1,2, and 3? There is no way they have 3 years if only a handful of units close in the first 6 months or say even the first year if the way building is going to be populated is through legal actions. That “3 years” of cash will disappear in a New York minute.
So really one of our best sources for understanding the near-term sales prospects for the VUE is to speak with the Preferred Lenders and see what’s coming. If you are working with a Preferred Lender, or know of any issues or concerns of the Preferred Lenders, please comment or email firstname.lastname@example.org and share what you know.