A video tour of mixed-bag proportions – it wasn’t just subprime loans given to gardeners:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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CA DRE #01527365, CA DRE #00873197
I’m not sure, but I think this article may be about the condos you show in Lake San Marcos:
http://www.nctimes.com/articles/2007/03/13/news/inland/san_marcos/18_03_573_12_07.txt
It sounds like they did, indeed, have a lot of interest.
According to an article in 2006, prices were going to be over $350,000 with a very large mandatory services payment:
http://www.signonsandiego.com/uniontrib/20060224/news_1mi24condo.html
Maybe the $5.75 million foreclosure was a mistake?
From the nctimes article:
He said about 250 people remain on the waiting list for condos and will soon be asked to put down a $10,000 refundable deposit.
“The response around here is really good,” Schmitz said. “More recently, we’ve seen a lot of people coming in from Orange County, Palm Desert and Palm Springs.”
from the u-t’s article:
“This will be the signature area of Lake San Marcos,” said Jim Schmitz, a managing member of the Del Mar-based Club Vantaggio Partners, which owns the property. “It’ll be an absolutely spectacular project.”
The county approved the 150-condo development, called The Cove, last month. Construction should start in the fall, Schmitz said.
Most of the condos will have two bedrooms and two bathrooms and cost $400,000 to $450,000. A mandatory dining and services package will cost $2,500 to $3,000 per month.
Excellent video and info… thanks Jim! I’m sending this one to my friends.
Very well done video. I’m a little interested in the 12 unit property for 900k in downtown Carlsbad.
Jim,
There are some high-rises in Laguna Woods (Leisure World) that are basically the same: lower sales price, and Monthly dues that include meal and services packages.
Unfortunately for “The Cove”, they may have overestimated the size of the target market. I know here, you can pick up 1 bedrooms for less than 20K. Yes, you read that right. That’s because the monthlies are $1500-$1700.
Exhibit A:
http://www.redfin.com/CA/Laguna-Woods/652-Paseo-Del-Lago-92637/unit-2/home/21668681
You can also pick up 2 bedroom units for less than 100K
Exhibit B:
http://www.redfin.com/CA/Laguna-Woods/24055-Paseo-Del-Lago-92637/unit-257/home/21686549
If they think they can get $2500/month AFTER paying $450K, they had better be spoon feeding their residents.
Just my $.02
Chuck Ponzi
Oh, and yes, I’d go in with Shadash on the 12 unit.
Chuck Ponzi
7-unit, not 12, but still worth considering with an easy $130,000 per year gross income.
Is each unit 2 bedroom? Is there 2 parking spaces per unit? Is there laundry hookups per unit? Laundry on-site?
Nice piece, Jim.
Rising Unemployment Accelerates Foreclosure Crisis
WASHINGTON — Relentlessly rising unemployment is triggering more home foreclosures, threatening the Obama administration’s efforts to end the housing crisis and diminishing hopes the economy will rebound with vigor.
In past recessions, the housing industry helped get the economy back on track. Home builders ramped up production, expecting buyers to take advantage of lower prices and jump into the market. But not this time
These days, homeowners who got fixed-rate prime mortgages because they had good credit can’t make their payments because they’re out of work. That means even more foreclosures and further declines in home values.
http://www.huffingtonpost.com/2009/07/16/rising-unemployment-accel_n_236476.html
7-unit building is 6,240sf built in 1966 on a 10,779sf corner lot.
From last listing, when it sold for $1.66 in 2007 to a realtor and the seller carried the first mortgage of $1.35 million. Rents at the time were $800 to $1,000 per month:
“All units are 2 story townhome-style, with 2 beds/1.5baths, woodburning fireplaces, laundry in 1 car garage, & private yards. Square footage is approx. 1033sf per unit. Rent should be approx. $1600/month”
At 900k to 1mil, it seems like a long time to get to your break even point.
No one has mentioned it so it may just be me, but I had bad echo problems on the audio.
Hi Jim, always read your blog but never post before. As a Business Broker from Carlsbad, I go around and drop of mailers to business owners (avg. 300 per week), I have never seen this much empty space available and I am now seeing businesses give up and walk away with nothing. I know we have not seen the worse yet. Keep up the good work.
You get decent space below $1/sfgenerally available and people will start new businesses.
From Nathan’s link to the Huffington Post:
WASHINGTON — Relentlessly rising unemployment is triggering more home foreclosures, threatening the Obama administration’s efforts to end the housing crisis and diminishing hopes the economy will rebound with vigor.
—————
The reason Obama’s plan is failing is because they are focusing on artificially propping up housing prices. High housing prices are exactly what got us into this mess.
If anyone actually cares about the economy, they will focus on JOBS, not housing.
**Cheap housing** would be a boon to the economy, because it would free up money to be spent on more productive endeavours. High housing prices hold money hostage because it cannot be spent unless “owners” sell — ultimately driving prices lower again as everyone attempts to cash-out. HELOCs and cash-out refis are bad for the economy in the long run, because they have an equal debt offset, which pulls economic activity from the future.
While I assume the PTB actually knows this, they cannot act to save the economy because BANKS (who really run the country) would have to suffer in order for the economy to strengthen.
tj, I agree, but there is no one offering retail space for $1 psf. Most places are $3 plus NNN.
Golden opportunity for Klinge Realty!
Buick has pulled it’s sponsorship of the San Diego Open. Next year it could be the Klinge Realty Open at Torrey Pines! Can I get a sponsors exemption?
Jim,
Excellent job as always.I’m checking around Carlsbad for a potential office, but rents are ridiculous. I checked Bressi Medical Bldg, and those are hefty.
I’m interested in that apt complex on ur vid. Keep me posted. I’ll contact you soon.
there is no one offering retail space for $1 psf. Most places are $3 plus NNN.
Today, not necessarily tomorrow.
Ingredients for softer landing:
– low mortgage rates (under 6%)
– lots of “bank deals” available for sale
– homebuyer tax credits
– $1/sf for office and retail (stim employment)
They’d have to occur at the same time to do any good, but maybe in 2010?
Golfproz – I golfed yesterday for the first time this year!
I’m lovin’ your sponsor idea, think we could have a keg at each hole?
Ingredients for softer landing:
– low mortgage rates (under 6%)
– lots of “bank deals” available for sale
– homebuyer tax credits
– $1/sf for office and retail (stim employment)
Don’t we have all of this already except for a good supply of REOs (#2)?
Then again, the stock market is heading back up…
OT: That was a 1967 Buick Wildcat, normally powered by a 430 cubic inch big block. The video shows the top of one of the heads, so I think he still has the big engine in it.. also sounds like he may have a long duration cam in the engine as well.. definitely a bit of a wild ride/sleeper.
Anyone notice the “porceline tile” at the end of the video? That the new swine flu variant? 😉
-Erica
I’m lovin’ your sponsor idea, think we could have a keg at each hole?
To handicap the tournament, drink one beer after parring and two beers after birding the hole.
OT: Technically and from the sounds of it, that is not a sleeper 🙂
OT: A sleeper is a vehicle that looks like it should not go fast.. and generally sounds like it doesn’t, or is on its last legs.. but… (for the uninitiated)
The exhaust was not that loud, but I heard the ‘pinging’ from the headers, and the engine had a slight ‘lope’. I think the hood was off of it temporarily, the guy was probably working on it and did a test drive after some repairs. The overall condition was too good to be one of those ‘drive around with the hood off jalopies’.
A ‘whine’ sound from an engine could be the hydraulic pressure pump in the automatic transmission, bad timing chain(both which indicate an engine about to die).. or a Gear Drive (on the cam), Roots or Vortec supercharger (indicating that you wouldn’t want to ‘challenge’ it) – note Donovan Gear drives used to be noisy.. but they have become quieter.
A misfire could be either poor mixture, bad carb or injector setup, bad spark plugs, dying distributor… or could be a long duration cam at idle.
Tapping sounds in the engine could be either dying lifters, or a car with solid lifters..
The real way to tell is in the subtle differences in the sounds, which requires experience to detect. Sleepers are not sleepers to those who have built one.
Most people don’t realize that the Buick Wildcats were actually performance cars. They look sooo Mom and Pop.. Stock, they had nearly 400 hp engines, though the car was nearly 2 tons. This is similar to 200hp in a 1 ton car. (most cars weigh in at 3000lbs+ these days, 1.5 tons).
Another one to watch out for is a 1964+ Ford Galaxie 500. Some came from the factory with the 427 SOHC engine (overhead cam hemi 427 V8, aka Cammer) – street gas 600hp. This engine was homogulated for NASCAR by selling 200 cars with the engine. The engine was created by Ford because Chrysler was winning NASCAR with its hemi. It ran for 1 race and won. Chrysler cried foul and threatened to pull out. Ford presented that it wasn’t very much different than the Chrysler except for location of the cam.. so both were banned.
I tracked down the owner of the 7 units in Carlsbad.
He said the trustee sale scheduled for a couple of weeks away was a big mistake, blah, blah.
He’ll take $1,900,000
Annoying
He won’t get $1,900,000.
Jim, I live in Lake San Marcos (not old and not retired) and did a search on “Cove Lake San Marcos foreclosure.” The rumor is this development, in construction for 2+ years, is in foreclosure. Anyway, found your site and watched almost every single youtube video you posted! Anyway, I have you heard anything more about the status of that project???
You are the best.