The NonProfit Times - January 1, 2008 - (Page 22)

STREETSMART NONPROFIT MANAGER Continued from page 21 third building as a motel, which it began to operate as a social enterprise, employing some of its clients as well as regular motel employees. WHAT TO LOOK FOR Three times in history the federal government has created an RTC-like entity to help smooth the migration of distressed properties to new owners. In addition to the RTC, this happened initially during the Depression and then again during the mid-1980s. Each time the solution was a corporation set up to accumulate and dispose of distressed properties.This had the advantage of concentrating the flow of assets into a single funnel under the oversight of the federal government while offering a way to try to keep the cost of the federal governmentsponsored bailout as low as possible. History truly does repeat itself. So if the current wave of distressed properties grows larger, look for the creation of an RTC-like entity. This offers the streetsmart nonprofit manager a single point of entry into the distressed properties marketplace, where bargains might very well be available (or not, depending on the nature of local demand). Note that the sub-prime meltdown right now only affects residential properties. But if the crisis were to widen and take on more of the characteristics of previous eras, office buildings, apartments, and retail centers could be in the mix. OFFICE BUILDING RELUCTANTLY FOR SALE. AGAIN. Another nonprofit looking for a smallish urban office building to serve Sample The NonProfit Times' eNewsletters - Free Newsletters for the Nonprofit World The NonProfit Times Weekly - This weekly eNewsletter provides readers with news, helpful hints and proven ways to improve their organizations. NPT Instant Fundraising - For fundraising professionals and those interested in fundraising, this eNewsletter helps the development-minded nonprofit executive sharpen their fundraising skills by providing news, helpful hints and ways to successfully fund their organizations' mission. NPT Jobs - Developed because of overwhelming requests for assistance with career advancement, NPT Jobs eNewsletter provides feature articles on employment trends and highlighted job opportunities in the nonprofit sector. NPT Techno Buzz - Designed to keep everyone involved in the purchase of fundraising technology up to date with the latest development in software, hardware and how-to tips. Exempt eNewsletter - Brand new and packed with information for top-level executives of nonprofit organizations with over $10 million in revenue. Features content for the endowment, asset and financial management of the nation's largest nonprofits. both as a program site and administrative offices had long coveted a particular building. It was offered for sale at one point but was financially out of reach. Then the winning bidder itself went bankrupt,dumping the property back into the hands of the bank. Banks are good at keeping track of money and making loans but they’re not good at managing distressed properties.What’s more,they know it.When the forward-thinking chief executive officer heard about the foreclosure he approached the bank and noted how much the building had become a public relations black eye for the bank and how much of a hassle it must be to manage. He offered to take it over for a certain amount and to make a big deal about the bank’s helpfulness to community organizations thereafter. The bank thought about it for a while and then offered to sell the building to the group at a very reduced price -- if the deal would close in a very short time frame. Having already lined One just isn’t enough… The NonProfit Times now has FIVE eNewsletters specifically targeting your interests. With over 100,000 already subscribing, don’t miss these electronic newsletters packed with the information you need. Banks are good at keeping track of money and making loans but they’re not good at managing distressed properties up financing from its own bank, this streetsmart nonprofit promptly completed the deal. WHAT TO LOOK FOR www.nptimes.com Distressed properties appear all the time, and preparing them for the market costs money that reduces the proceeds from an eventual deal. The difference from the first scenario is that an RTC-like entity packages large numbers of buildings expressly for the purpose of unloading them as fast as possible.This scenario occurs on a oneby-one basis, so the only practical way to identify it is to have good contacts in the local business community who are likely to know of these situations. Incidentally, it’s possible to work backward to these situations. Look for telltale signs of disrepair and deferred maintenance in a building near otherwise reasonably well maintained properties.This kind of outlier may indicate ownership’s difficulties.Find the name of the owner through public records and make them an offer. HOUSE OF ILL REPUTE The NonProfit Times, 201 Littleton Road, 2nd Floor, Morris Plains, NJ 07950 22 JANUARY 1, 2008 THE NONPROFIT TIMES www.nptimes.com Another streetsmart nonprofit, looking for a place to locate a program serving troubled teens, found the ideal property on the fringes of a residential neighborhood adjacent to a low-denStreetsmart, page 23 http://www.nptimes.com http://www.nptimes.com

Table of Contents Feed for the Digital Edition of The NonProfit Times - January 1, 2008

The NonProfit Times - January 1, 2008 Expenses Continue To Put Stress On Nonprofit Budgets Insuring Donors’ Goodwill Volunteers On Firing Line Contents Who...When...Where...How...What? Red Cross Audit Comes Up Clean Exit Doors Rear And Aft Calendar A Fresh Look Special Report: Accounting APIs Opportunity Is Knocking Middle Management Barrier Memorial NPT Jobs Resource Directory

The NonProfit Times - January 1, 2008

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