Any Idea What This Sketchy Buy Structure or Program Is?
Hotel broker here. I've received a number of offers recently, as well as prior to the COVID, which are extreme lowballs on very well priced properties with strong historical financials. The language used in the emails is eerily the same.

They all say they "would love to make an offer at the full asking price of $XX" but it doesn't pencil according to their analysis.  They will never identify what they are adjusting or how.

The offer is a weird number - never rounded but very precise as if to pretend they actually did some calculation. The three offers with this same structure on a $2.9m property all came in at $2.1m with random trailing numbers.

When they are advised that the initial offer is unacceptable, they all respond - "is there a number between asking and my offer which would work for the Seller?"

None of those things by itself would be a significant red flag - we deal with lowballers all of the time - but the repetition of the same language and components lead me to believe it is some sort of "buy commercial property with no down" program.

I point blank asked several of the buyers and their responses were both that there was no program, they were probably using the same lender. It seems like it is likely an attempt to get in contract at 75% or 80% of value, appraise at or above asking and use the imputed equity in the property as the "down payment" for the loan.

Any idea what this program is? I'm really curious and I'd like to be able to be more pointed when dismissing the offers as well as advise my Sellers of where these are coming for.
[{"id": "frkkh23", "text": "Never seen that before in CRE but commenting because I\u2019m so curious now.", "replies": [{"id": "frkoejz", "text": "What sector do you work in? I have also seen similar schemes in smaller multi-family projects in the past. Not this exact one. This exact one is just weird as they seem to have a script they are working from.", "replies": [{"id": "frl6fbq", "text": "This is what happens when you get a scraper or api and start automating emails.  They probably already have a buyer lined up at a higher price, so they're just playing middle.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "frkrk20", "text": "Lots of rescue equity / opportunistic money out there looking to scoop up distressed assets. In multifamily there\u2019s over $200B of dry powder ready to go (source: i\u2019m on weekly market update calls with the largest Real estate debt and equity raising platforms out there CBRE, JLL, Eastdil, NKF, etc)\n\nHotels are roughly pegged at anywhere from 10-25% off pre covid values. There\u2019s no science behind that, just what everyone is predicting. Drive to resort / limited service expected to fare better than destination resort / convention hotels.\n\nYou\u2019re probably just getting spammed from one of these opportunistic funds putting in low ball offers on all listings trying to put money out.\n\nDoubt they have any financing contingency. No one is lending on hotels now. These guys are buying all cash and want a discount for providing the market place with liquidity.", "replies": [{"id": "frkuxq1", "text": "I'm on those same calls and your #'s are spot on for the HVS review earlier this week. The drive to market is the outlook for real Buyers for sure - we're actually seeing 75% occupancy at those types of properties the past two weekends in the PNW.\n\nThese are little players. They are looking at properties in the $2m to $6m range. They were sending these same emails last fall pre-Covid which is why I think someone is offering a \"plan\" to small commercial buyers. Probably more active right now which is why I recognized the pattern.\n\nThey do always promise all cash but won't provide POF so it's financing without a contingency.", "replies": [{"id": "frl14xi", "text": "Interesting. Are you seeing any trades actually get done post covid? I\u2019m working out a few loans that have maturities at the end of 2020. No idea what\u2019s going to happen. Everyone thinks there equity in the deals but I want a pay down to extend maturity and they don\u2019t want to put more $ in or raise pref equity at 14%, so we\u2019re at a bit of a stalemate. I can do 90-120 days of forbearance, but I don\u2019t see hotels bouncing back for another 1-2 years. Shits going to hit the fan soon on anything maturing in the next 6-12 months.\n\nI suspect you\u2019re very busy with advisory, but probably not a lot of folks striking? My deals were 50% or less pre covid. I personally think values have dropped closer to 35-50%, so these feel underwater to me... but my PMs just want to kick the can and see what happens. No one wants to foreclose today.\n\nWhat a damn mess.", "replies": [{"id": "fro9mjf", "text": "Certainly new development is dead in the water; our brokers are telling us to wait and see what will trade through distressed groups. We just had a mid-eight-figure letter of credit be revoked from a serious lender with whom we have a longstanding professional relationship under the pretence that their credit facilities are stretched to the limit because even credit tenants are balking at repayment.\n\nWe're now waiting to strike after the crisis, but it looks like there's going to be blood in the water for a long, long time. Lots of small and mid-sized players are going to go bankrupt.", "replies": [{"id": "froruyj", "text": "Certainly have heard similar from large money center banks re Credit lines maxed. Believe BofA and Wells both had ~$30B drawn down in the past few months. Wonder if those 25bp annual fees were worth it all those years.", "replies": [], "depth": 5}], "depth": 4}, {"id": "frpk7b9", "text": "We are seeing movement in the market which increased to a large degree last week. Have had several transactions go into contract as well. Several lenders are currently lending and funding. It's slim but not non-existent.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "frmbxu9", "text": "I\u2019m new to this forum and have only worked in residential REI. Is wholesaling a practice used in the commercial world?  Working as a middle man, offering non round all cash number is common with distressed properties/sellers for residential properties.", "replies": [], "depth": 1}, {"id": "frnuzzb", "text": "Saw this in multifamily a lot a couple of years ago. Was selling a cheap portfolio of 500+ units/ 5 complexes in C Grade market in the south. Got of couple of offers from two separate groups that had zero idea what they were doing. Didn\u2019t understand acquisitions, deal process, etc. it was obvious they were trying to a short sale scheme. Trying to get the deal under contract at the lowest price possible, find a buyer to come in and take over the acquisition while they controlled the property (during DD), and keep the difference.", "replies": [{"id": "frpjvoz", "text": "That would be a pretty stupid move in today's hotel market LOL - they must be inexperienced indeed.", "replies": [], "depth": 2}], "depth": 1}]