Something definitely happened over the weekend for my team and our business as the phones are ringing off the hook, offers are being negotiated, and one buyer is unfortunately losing a bidding war. Anecdotal of course but I’m incredibly busy right now so check out the 62nd Carnival of Real Estate at vflyerblog.com.
Couldn’t resist sharing this exclusive Casey Serin update from my favorite bubble blog HousingPANIC. For those who already forgot about this guy, he’s the one who started iamfacingforeclosure.com and stupidly blogged about all of his lies and deception to the banks so that he could secure mortgages to buy investment properties.
I hope this message is taken as sincere. I have no more reasons to
"spin" anything…
I’m working a stable consulting job for an experienced entrepreneur.
Consulting is a generic term which means I’m doing whatever needs to
be done. The best part is I have a slice of ownership in the venture.
So its the best of both worlds – the stability of a 9-5 with weekly
paychecks while still giving me lots of flexibility, a chance to build
something and share in the profits. Very much a blessing. So I’m
getting back on my feet financially, though very slowly.
Trying hard, REALLY hard, to not get distracted too much by "pie in
the sky" stuff and my temptation to go back online and in media.
Turning down the Dr. Phil show recently was a very tough one! I have
to remember that it was the online/media over-exposure that was the
"last straw" in my marriage breakup, amongst many other things.
Its obvious that I cared much more about my "fame" and potential sweet
deals/opportunities that might come as a result, than the concerns of
my wife and our unity. Also there was that hand-written promise I
made to her to shut down the blog, get a job and lay low for 2 years
or more. I want to keep that promise, even if I never get back with
her. It’s the right thing to do and will teach me to honor my word.
And yes my wife and I are still separated, unfortunately. I am
learning some really really hard lessons about how fragile
relationships really are. As I’m sitting here all alone typing this
email at 4:48am (all nighter), I’m thinking back to a time when she
was right here by my side. Man, how stupid I was to ruin such a great
thing! Now I can only work on making things right in my life and pray
that God gives me another chance with her.
As you’ve seen, I sold the blog for 50K – huge thanks to Aaron Krowne
of www.ml-implode.com. I finally did the right thing (though
reluctantly at first) by paying off all the debt that was in my wife’s
name as well as most of our private loans. It was really my own debt.
She trusted me with her credit to use for the real estate deals.
What did I do? I ruined it and broke her trust (not the first time
unfortunately).
Paying off that debt took a little over 40k. Plus there were a couple
of previous "partners" that I had to pay to make things right — more
painful lessons on promising too many things to people and not keeping
those promises. The attorney fees to undo some of those entangling
relationships took a big chunk. G kept the Jetta so I also bought a
cheap used car for myself for 3K. So that’s where that 50 grand went.
All gone, but for a good purpose.
Not sure what I’m gonna do about the approx 500K of debt still in my
name. That figure includes both credit cards, deficiencies on
mortgages and a private loan. Its just an estimate as I won’t know
until all my bank-owned properties get sold. My desire is still to
find a way to pay back "every dirty penny", but I also have to be
realistic. I am considering Chapter 13 bankruptcy. It forces lenders
into a repayment plan and I can start cracking away at it. But I’m
not sure yet if that’s the right plan. Too much things are still up
in the air. We’ll see.
As far as FBI and "mortgage fraud "investigation goes, I don’t have
any news. Last I heard they still have a file on me and perhaps
they’re just taking their sweet time. I do have a defense attorney
and plenty of proof to show I did not have any criminal intent and had
plenty of reliance on professionals.
Of course I made some bad business and ethical decisions with the
loans. Then I was naive enough to blog about it in vivid detail and
let people blow it out of proportion. It was fueled my idealistic
desire to help others by sharing my experience of what "not to do". I
sure hope my story helped some people, both those facing foreclosure
and especially newbie investors to be more careful.
I am not excusing my behavior and am ready to do whatever I can to
"right the wrongs", like attempt to pay off the debt. All I know is I
have to continue doing the right thing and let the "chips fall where
they may". Living in fear is not going to do me any good.
Man, do I wish I didn’t have to go through all this crap but I was
blinded by my reckless pursuit of financial success. It was
definitely fun and adventurous at the time (like the Australia trip),
brought me some great contacts and relationships, etc. In the end it
was much more harm than good. Loosing my wife that is.
Having said that… I’m not giving up on my dreams of financial
success. God gave me those desires for a reason. Instead I am even
more determined to pursue it but in a safer way – even if takes
longer. Biggest thing is I must put my loved ones first. For it is
because of them, my family and friends, that I want to become
financially independent. I’m looking forward to that day when I can
share my abundance with them. But in the mean time I have plenty of
non-financial abundance I can share – love, caring, quality time, etc.
About 3 weeks ago my 25th birthday came and went. I did not
accomplish my goal of 5K/mo passive income – a goal I set 7 years
earlier. I’m OK with that. The truly tough part was not being with
The One whom I really wanted to share that special moment with. I
guess we take for granted the things that truly matter
(relationships), until they’re taken from us.
Anyway… this is the last the online world will hear from me for a
long long time. All in all, the past year has been some of the
craziest times of my life. That’s for sure. I thank both the haterz
and the supporterz. Everybody played a role.
In closing, I will say my favorite line…. "Its all good!" I’m
still an optimist but (hopefully) getting wiser through painful
lessons and many lonely nights.
Casey Serin
He continues to be the poster boy of all that went wrong during the national housing fiasco. It still baffles me that he has gone unpunished by authorities particularly as he provided a detailed log of his activities on the internet…a real genius.
Turns out their were rumors that he was going to become a real estate agent but thankfully that didn’t happen and now he claims to be a "consultant." Are you kidding me? That’s scares the hell out of me! For what he is providing consulting services? Perhaps it’s how to bling out your orange jumpsuit.
I just received an email from Joel Burslem of Future of Real Estate Marketing that I have been named one of the 25 Most Influential Real Estate Bloggers for 2007.
I’m absolutely honored to have been named to this list. Congrats to all of my colleagues as well. An exciting day indeed for TrueGotham as our appearance on this list coincides with the launch of TGTV! It’s a good day. Thanks Inman!
If you’re a regular reader of TrueGotham, there’s no secret to how I feel about discrepancies in square footage and the lack of standardization of measurement (or is there?) in the marketplace. Buyer frustration permeates the market as prospective purchasers continue to ask, "why can’t we get an accurate quote of square footage?"
In our inaugural episode of TrueGotham Television (TGTV), we explore the methodology of measuring square footage. Jonathan Miller from RadarLogic and Miller Samuel Appraisers, Yungie Hahn from H2 Architects, and Don Meade from Quality Floor Plans join me to share their methods for calculating and their thoughts on square footage inaccuracies.
Tune in next week for each professional’s findings and the first part of our panel discussion on methodology and the lack of accuracy in square footage quotes.
Clients of mine just sent me an email asking exactly what they should be looking for when they do their walk through of their new apartment this coming Friday. Excellent question and here is a relatively comprehensive list from one of my colleagues, Paul Macapagal of Prudential Douglas Elliman:
- All receptacles and switches work, proper polarity checked (Paul suggests bringing your cell phone charger to check outlets…GREAT IDEA!)
- GFCI receptacles tested and working
- Switches and receptacles are the proper color
- All device plates installed straight and tight to the walls
- Light bulbs installed in all fixtures and all in working condition
- Telephone Jacks working
- Cable TV Jacks working
- Network jacks working
- Door Bell working
- Toilets all working
- Faucets all working
- Showers, bathtubs, and whirlpools all working
- No scratches, chips or nicks on any plumbing fixtures
- Hot water heat, each zone working properly
- Painting satisfactory in all rooms, closets and stairways no touch-ups required
- Walls, no dents, scratches, nicks or bad finish
- Windows all working and sealed properly
- Doors all working and sealed properly.
- All the glass windows and doors good with no cracks or chips
- Wood floors properly installed and finished with no stains or marks
- Carpets properly installed with no stains and all seams match
- All interior wood trim and moldings in place and properly installed
- All Air Conditioning working properly
- Heating units working properly
- Appliances like the washer, dryer, and oven etc. are all working properly
- All cabinets and counter tops checked for scratches, nicks, cuts, cracks or chips
- All tiles checked for scratches, nicks, cuts, cracks, or chips
- All cabinet doors open and close properly
- All cabinet hardware installed properly
- Check all options such as garbage disposal, multi jet showers, steam baths, saunas, intercoms, concierge phone, alarm system, etc.
- Received all instruction manuals, directions and warranties
- Fireplace works properly, Draft and damper working
- Make sure all the keys are accounted for
- Check all the common areas of the building
This is the most complete check list I have seen in my 16 years and I can’t think of anything that has been overlooked.
Hot of the presses…here’s a summary. The complete report will be available in the coming days.
Highlights:
Overall Manhattan Market [includes entire island]
The Manhattan residential real estate market saw more of the same characteristics as the prior 2 quarters of 2007 did. An elevated number of sales, declining inventory, modest price increases overall but sharp increases seen at the upper end of the market. It is likely too soon that the events of the credit crunch that began in mid-July will have an effect on market conditions in the 3rd quarter. Its impact, if any, would more likely be seen in the coming two quarters.
– The number of sales increased 65.6% this quarter to 3,499 units as compared to the 2,113 units sold in the prior year quarter.
– Listing inventory fell 31.7% to 5,204 units from the prior year quarter total of 7,623 units.
– Days on market was 123 days this quarter, faster than the 150 days seen in the same period last year.
– Listing discount was 2%, down from 4% during the same period last year.
Price levels were generally up this quarter, with the greatest price gains seen in larger apartments, namely 3-bedroom and 4-bedroom units with a 17.9% and 16.4% gain respectively over the same period last year.
-The average price per square foot increased 9% to a record $1,144 over the prior year quarter result of $1,050 (0.4% above the prior quarter result of $1,139).
-The median sales price increased 2.3% to $864,397 over the prior year quarter result of $845,147 (3.4% below prior quarter record result of $895,000).
-The average sales price decreased 0.8% to $1,290,391 over the prior year quarter result of $1,300,928 (5.4% above the prior quarter result of $1,224,840).
Co-op Market
-The average sales price of a co-op this quarter was $1,118,465, up 2.8% from last year at this time. Average price per square foot increased 9.2% and and median sales price slipped 2.4% from the same period.
-Inventory levels for co-ops fell 32.8% to 2,472 units as compared to the prior year quarter total of 3,680 units. Co-op listings are comprised of nearly all re-sales, with only about 1.6% of new co-op development added to the housing stock.
Condo Market
-The average sales price of a condo this quarter was a record $1,638,798 this quarter, up 9.2% from last year at this time and up 12.4% from the prior quarter. Average price per square foot and median sales price showed 9.1% and 5.2% gains respectively from the prior year quarter.
-Inventory levels for condos totaled 2,732 units, down 30.7%% from the prior year quarter total of 3,943 units. New development was estimated to account for 36.7% of condo inventory this quarter.
Luxury Market (upper 10% of all co-op and condo sales)
-The average sales price of a luxury apartment this quarter was the second highest on record at $5,085,883 this quarter, up 12.8% from last year at this time and up 10.3% from the prior quarter. Average price per square foot and median sales price showed 16.7% and 16.3%% gains respectively from the prior year quarter.
Loft Market (co-op and condo sales)
-The average sales price of a loft apartment this quarter was $2,069,364 this quarter, up 4.9% from last year at this time but down 14.2% from the prior quarter. Average price per square foot and median sales price showed 8.8% and 20.1% gains respectively from the prior year quarter.
So there you have it.
Christine Haughney of The New York Times reminds us that Manhattan is an entity unto itself…in more ways than one. In this particular circumstance, we’re talking about housing and how our local Manhattan housing market continues to buck the downward trend of markets across the country…for now.
Four reports issued yesterday by the city’s major residential real estate brokerage firms showed that apartments closing in Manhattan in July, August and September sold for the highest average sale price ever and that the inventory of homes for sale declined over all.
On average, buyers spent $1.37 million for a Manhattan apartment, a 6.3 percent increase from the corresponding period last year, according to one report, by Prudential Douglas Elliman. The number of apartments on the market fell by nearly a third, to 5,204, in the last quarter, compared with 7,623 a year earlier, the report said.
As many of the transactions included in these reports took place in the weeks prior to the credit crisis, it will be interesting to see how the last quarter of 2007 ends up. As of right now, inventory is remaining tight, interest rates are low, and buyers are still "interested" in buying. It seems as though tight inventory and reasonable mortgage rates will continue to be the story going forward. The big question that remains is just what will happen to Wall Street? Layoffs…yep. How many? Who knows? Bonuses…some lean…some not. A lot will be determined in the next couple of weeks when Wall Street finds out what they will get paid and whether they have a job. This news could drastically effect both the buying pool and inventory in the coming months.
I have totally been lax about posting the Carnival of Real Estate since shortly after I hosted it more than a year. I will try to be more diligent in sharing. So the Carnival is up at Mortgage Insider. Check it out.
The news this morning from The Wall Street Journal that New-Home Sales Hit 7-Year Low paired with yesterday’s news of discount broker Foxtons going out of business makes me wonder if any discount model can survive in a slumping housing market. Take for instance the quote from Foxtons’ senior vice president and general counsel, John D. Blomquist:
"The plain fact is that we have been battling against a real estate market that recently has turned into a sharp decline, and the company no longer has the liquidity to operate as a going concern."
So as housing prices continue to decline across the country, there appears to be a bit of a double edged sword. With profits dwindling and perhaps losses expanding, seller’s are obviously going to want to keep as much of the proceeds of a sale as possible. The problem however is that the discount model that would allow sellers to do just that doesn’t provide the caliber of service from a marketing perspective necessary to sell a home in a falling market.
I have been selling real estate for 16 years and I’m here to tell you that when I started in the industry in 1992, representing sellers was tough! Property often languished on the market for 18-24 months despite continued marketing efforts. A large percentage of the 6% commission (almost always split with another agent) was spent over that lengthy period on marketing. So how will a discount broker model that stands to make only a few thousand dollars or only 1-2% commission deliver buyers in a slumping market? I suspect it will be more challenging than most of them had ever imagined. It’s not unlike the experience to come for the real estate agent who has only been in the market for the past 5-7 years and has very little experience marketing or selling property because it has basically sold itself. The discount brokers who have popped up during the housing boom are in for a rude awakening as they realize that their business models won’t pay the bills if they can’t sell the homes.
I suspect that Foxtons won’t be the only victim of the nation’s housing slump and that seller’s are going to experience a renewed appreciation of the value that a solid, knowledgeable real estate professional brings to a transaction. In fact, if it gets any worse, many sellers will just appreciate any transaction.
From BoingBoing comes word of a Titan missile silo for sale for $1.5M. Here’s what you get:
Above ground is the original 40 X 100 shop building, two concrete targeting structures, two manufactured homes, two 8 X 8 X 40 storage containers, and the silo tops of the three missile silos, two antenna silos, one entry portal and a few other misc structures.
Below ground is a huge complex consisting of 16 buildings and thousands of feet of connecting tunnels. The major underground structures are:
Three – 160′ Tall Missile Silos
Three – 4 story Equipment Terminal Buildings
Three – Fuel Terminal Buildings
Two – 6 story Antenna Silos
One Air Intake/Filtration Building
One 100′ diameter Control Dome Building
One 125′ diameter Power Dome Building
One – 6 story Entry Portal Building
and a few other misc buildings and areas.
Love this comment from ANOTHERSHAMUS…"Didn’t those go for $10.00 back in the 80’s? I knew that it would have been a good investment but I was worried about the residual radiation."
