Yesterday's New York Times carried an interesting article about Norman Radow, a "workout specialist" called in by real estate investment firms to fix bankrupt communities. One of his clients, TriLyn, a Greenwich, CT, real estate investor, owns the troubled Balsam Mountain Preserve near Waynesville, NC. Balsam Mountain (see my review here) features a mountaintop Arnold Palmer golf course and 400 home sites, only 280 of which have been sold. Property owners have been trying to raise enough money to come up with $20 million in loan payments. Developers Chaffin & Light, whose other high-end developments had remained trouble free, are trying to stay involved at Balsam, but given Radow's reputation for tough measures, that does not seem likely.
Radow and his company, Radco Development Solutions, offer tough medicine to communities on the brink of collapse. Needless to say, Radow's healthy compensation includes unhealthy words from disappointed owners who thought they were buying into stable communities and suddenly are faced with plunging property values, big assessments, a cutback in amenities (such as clubhouse restaurants) and a private golf club that may have to, ugh, permit some public play.
Still, as mother told us, sometimes you have to take the bitter medicine in order to feel better. Of course, she also said an ounce of prevention is better than a pound of cure. Before you consider a purchase of a home in unfamiliar territory, engage the services of a reputable and experienced real estate agent. I have worked with and interviewed many of them and can help you make an informed choice. Please contact me for more information.
Balsam Mountain's breathtaking golf course closed after the developers defaulted on loan payments. Property owners and a workout specialist hired by the controlling investment firm are attempting to reorganize things.