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http://www.snopes.com/politics/business/blum.asp

Discussion in 'Political Issues' started by lethal tupperwa, Jun 3, 2013.

  1. lethal tupperwa

    lethal tupperwa

    8,773
    754
    Aug 20, 2002
    Virginia
    Snopes says this is True.


    Most real estate agents get about 6% commission on sales, so that doesn't bother me as much as the fraud to the US taxpayers that helped pay for the purchase of those buildings and are basically getting nothing in return for their "investment." This is also a Conflict of Interest. Why isn't GSA trying to sell these buildings instead of a private entity?


    It pays to have friends in high places.





    The US has entered into a contract with a real estate firm to sell 56

    buildings that currently house U.S. Post Offices. The government has decided

    it no longer needs these buildings, many of which are located on prime land

    in towns and cities across the country.




    The sale of these properties will fetch billions of dollars and a handsome

    6% commission to the company handling the sales. That company belongs to a

    man named Richard Blum. Who is Richard Blum you ask?




    Why the husband of Senator Dianne Feinstein, that's who. What a bunch of

    crooks we have running this country!




    Senator Feinstein and her husband, Richard Blum, stand to make a fortune.

    His firm, C.R. I., is the sole real estate company offering these properties

    for sale. Of course, C.R.I. will be making a 6% commission on the sale of

    each and every one of these postal properties.

    All of these properties that are being sold are all fully paid for. They

    were purchased with U.S. taxpayers dollars, and they are allowed free and

    clear by the U.S.P.S. The only cost to keep them is the cost to actually

    keep the doors open and the heat and lights on. The United States Postal

    Service doesn't even have to pay property taxes on these subject properties.

    Would you sell your house just because you couldn't afford to pay the

    electric bill?




    Well, the Post Office is.




    How does a powerful U.S. Senator from San Francisco manage to get away with

    such a sweet deal?




    A powerful United States Senator's husband is standing by, all ready to make

    millions from a U.S. taxpayer funded enterprise.




    No one in the mainstream media is even raising an eyebrow over his 6%

    commission on the sale of hundreds of millions of dollar's worth of

    quasi-public asset
     
  2. RussP

    RussP Moderator

    33,737
    3,331
    Jan 23, 2003
    Central Virginia
    Some of it...
    Commercial commissions can go up to 10%, or can be as low as 3%. It depends on the property, the complexity of the listing, what expenses the seller will pay, what expenses the Broker will pay.

    Listing agents and/or selling agents rarely receive 100% of the commission. Generally, the Brokers'/agents' companies take a share for operating costs and profits.

    Now, for your argument that these listings enrich Blum and Feinstein, saying that the agents receive the commission, well, it weakens your position, doesn't it?
    How do you figure that? What is a good return on investment on one of the buildings?
    Look at the current properties in the GSA "For Sale" portfolio: Current Sales and Business Opportunities.

    Compare those to the current properties listed with CBRE: USPS Buildings; USPS Lots & Land.

    There are properties in the GSA portfolio that would benefit from listing with a commercial broker.

    GSA is grossly unqualified to effectively match the USPS portfolio to the right buyers, not to mention bringing those buyers together with the right financial institutions.

    CBRE brings much to the table GSA cannot.
    They entered into the listing contract in 2011 after an open bid process not subject to Congressional approval.

    Wouldn't you think that a company like CBRE would have their legal staff turn the Blum/Feinstein issue inside out before authorizing the bid submission?

    What friends in high places influenced the bid process?
    I cannot find any values that come close to $1 billion, much less several billion dollars. Where are you getting those individual appraised values to total that number?
    Maybe...
    No, he does not own CBRE.
    Exactly how will they make a fortune? Let's say the value on the current listings is $100,000,000. (Add them up on the CBRE site above. It is elss than that.) At your 6% commission, that's $6,000,000. The agents involved will get between 50% and 80%, $3.0 million to $4.8 million. That leaves what, $3.0 million to $1.2 million? The company will get some for sales costs. Does that leave a "fortune" for someone?
    Who, what is C.R. I.?
    While the carrying costs may seem low, some of the buildings are suffering from functional obsolescence. Some could be rehabed, repurposed, but at a cost. That cost affects value. Higher the cost, the lower the value to a buyer. The longer you hold such a property, the lower that value becomes. Ultimately, the value reverts to the land. I believe that is the case with some of the properties. That will be true with small buildings on prime parcels.

    Some properties have been held too long already.

    Some USPS properties have historical designations which essentially take them off the market unless a buyer is willing to adhere to the historical guidelines for repurposing.

    Citizens also hold properties hostage. Admittedly, some have good reasons. Close their post office and the next one is 10, 15, 20 miles up the road.

    Others just think their PO is cute. Good, buy it...
    Again, show us how Blum or Feinstein will make millions by the sale of these properties.
    Could be because he isn't receiving a 6% commission.

    Look, I started doing business with Coldwell Banker in 1978 long before it was the powerhouse it is today. As they grew, they left a market segment unattended. That enabled me to build a property management business to fill that void. I still referred larger properties to them. Part of the referral was that if the owner ever sold, I'd get a portion of the listing fee. They came through three times on those agreements.

    When I moved over to the lending side of the business, I knew when a CB deal came in, the numbers could be trusted.

    I have also done business with the four commercial brokerage firms under CBRE. They are good, but they are not as complete as CBRE.

    If you have a better suggestion, a better plan based on your experience in commercial real estate, I am certain everyone would like to hear it.

    I was more interested in Blum's ownership of Perini Corp and URS Corp. back 5-6 years ago. That smelled real bad.