10/10/10 had the wedding chapels working overtime. Fantastic weather for the Italian Festival downtown at Harrah’s. The town was hopping this weekend, and yet the Siena opted to close their casino operations on Friday, before this weekend’s big take. There are some new musings on the Siena situation over at REreno.
The $50M mortgage on the Siena is just a minor slice of the $650M RE Loans LLC fund lead by Bar-K (about $20M from RE Loans, and $30M from RE Reno LLC dedicated to the Siena). The RE Loans portfolio, traditionally a safe hard money investment, has absolutely tanked. There is an obscure yet arcane blog following the overall situation at Bar-K that is worth checking out.
In other heartening news, the Trustee’s Deed on Somersett Town Center finally recorded, with the bank (division) taking it back for $3,232,000 on the original $8,775,000. Devcon, the builder, and a subordinated loan of over $1,000,000 on the project, as well as mechanic’s liens for unpaid invoices on the tenant improvements. The Sale was originally scheduled for 30 July, then got postponed to 13 August, and postponed again to 14 September.
Who is Tofu Mary and why is she haunting RRB? She has a very pretty (if slash your wrists depressing) blog following economic trends and real estate. some of you will definitely recognize the “voice” behind the blog.
What can you say about 40 Pronghorn? Originally listed at least $3,995,000 while under construction and maybe higher, it sat high on the hill above Caughlin Ranch unfinished for a couple of winters. The new, reduced listing is at $1,785,000 and the listing finally has some actual pictures and not just renderings. What do you think about this place? It is still unfinished and I doubt it has a certificate of occupancy yet (no kitchen sink, missing railings, tumbleweed outside the windows).
Sorry I haven’t followed up with kalifornian on “What I Would do with $350,000”, but I was in the middle of making an offer on one of the places I would have recommended, 4985 7th Street #2. Asking $33,000 for an REO 2/1.5 townhouse that would have needed about $5000 in work to get it rentable. Rent would have been about $650, HOA $94, property taxes $80, insurance $20. It came with a 2 year home warranty that would have covered the stacked washer/dryer that ruined the living room ceiling and maybe the repairs! I got aced out (Active/Pending Loan) before I could submit my lowball but all cash offer. I bring this up only to illustrate my opinion of the investment market – break even seems to be at just about the median SFR. Above the median and you can’t make it pencil. Below, it is about your risk tolerance – can you make out better with a $20,000 condo in a sketchy area with an itinerant rental pool on Highview, a $35 – 45,000 unit in a better location (Smithridge), or $75,000 at Silver Creek, or a $150,000 SFR in the Old NW? Rental rates do not track to purchase prices in this stratum of the market, so it is all about your ability to attract and keep quality tenants.
The best commentary on the current “foreclosure moratorium” I’ve seen so far came to me via InclineJJ. I don’t think it all really matters. Do y’all?