Crystal Cove

NEW -> Contingent Buyer Assistance Program
skek said:
I know of some folks who fit the categories described by JLegend who went in as a team and purchased a group of model homes from the builder right at the peak of the bubble. Keep in mind that these are extremely wealthy guys who know nothing about real estate. They thought between the lease-back from the builder and the guaranteed appreciation, they would hold the homes for a year or so while the development finished and flip them for millions. Prices cratered, the developer terminated the lease-backs and they can't find either a buyer or a renter for any of their homes. They are currently losing about $50k per month. Even divided among the group of them, it ain't pretty.

Seems the luxury builders all knew what was on the horizon -- every builder in Crystal Cove quietly sold their models last year. Now why would they do that if the high-end was immune and prices in beach-close communities can only go up?
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I understand the mentality.

You’re right a lot of it has to do with ego.

One of the guys in the foursome mentions the idea and an investment is born.

Most of them live/reside in the same area and feel they can’t lose.
 
Sold, 39 S Sur

6 bedrooms

6 baths + 2 half baths

ocean, catalina, coastline views

approx 6,200sq.ft.

lot size 19,190

model home (price includes furnishings)

$5,250,000

hr96183959-1.jpg


hr96183959-2.jpg
 
skek said:
-- what did the "investor" pay for this particular home? Can you tell?
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Looks like they paid $6.7M.

Property Address: 39 S SUR

NEWPORT BEACH CA 92657

TRANSACTION INFORMATION

Transaction Date: 12/17/2007

Seller Name: WL HOMES LLC

Sale Price: $6,734,000.00

Type of Transaction: SUBDIVISION/NEW CONSTRUCTION

Mortgage Amount: $4,713,800.00

Mortgage Type: CONVENTIONAL

Mortgage Term: 30 YEARS

Mortgage Deed Type: DEED OF TRUST

Mortgage Date: 12/20/2007

Mortgage Due Date: 01/01/2038

Interest Rate: ADJUSTABLE INT RATE LOAN

Lender Name: JLH MTG

Lender Address: 27001 AGOURA RD STE 200 CALABASAS HILLS, CA 91301-5357

Recording Date: 12/28/2007

Document Number: 756970

Title Company: FIDELITY NATIONAL TITLE CO

Construction Type: SALE IS FOR NEW CONSTRUCTION

Purchase Payment: MORTGAGE
 
(built in 2007) tough to comp out this property in cc as most homes in the last few years that selling in that area were closer to 3,000-4,500sq.ft. you can comp this home but have to look to other communities throughout nc. only in the last 2-3 years did these 6,000+sq.ft. mansions in cc really come about. fwiw, 39 S Sur was sold for $6,734,000 on 12/28/2007, 22% haircut. not too bad considering that price includes the bells n whistles and comes furnished, still a little bubblescious imo, but i've seen folks overpay considerably more in nc.
 
skek said:
awgee said:
Wow! Taking a loss of more than $1.5MM. That is more than I make in a year. ;-P
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I wonder if the same investor own the other two SeaPoint models? If so, he has to be calculating what the total loss on that investment will be. But kudos to him for finding the price it took to get the sale done. Too many of these NC/CC mansions are sitting on the market unsold for months.
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Do you have the addresses for the other two Seapoint models?
 
skek said:
37 and 41 S Sur, 92657. Thanks in advance!
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No, different owners for each, husbands/wives in all cases. Notably, for all three homes, the mailing address is elsewhere -- and, for 41 S Sur, another home in CC -- making it likely that these are second and/or 'investment' properties only.

Owner Relationship: HUSBAND AND WIFE

Ownership Rights: COMMUNITY PROPERTY

Additional Owner #1: ******

Owner Relationship: HUSBAND/WIFE

Owner Rights: COMMUNITY PROPERTY

Additional Owner #2: *****

Property Address: 37 S SUR

NEWPORT BEACH CA 92657

Mailing Address: 1133 EMERALD BAY

LAGUNA BEACH CA 92651-1261

TRANSACTION INFORMATION

Transaction Date: 10/25/2007

Seller Name: WL HOMES LLC

Sale Price: $6,790,000.00

Consideration: SALE PRICE (FULL)

Deed Type: GRANT DEED

Document Type: GRANT DEED

Type of Transaction: SUBDIVISION/NEW CONSTRUCTION

Mortgage Amount: $4,753,000.00

Mortgage Type: CONVENTIONAL

Mortgage Term: 30 YEARS

Mortgage Deed Type: DEED OF TRUST

Mortgage Date: 10/29/2007

Mortgage Due Date: 11/01/2037

Interest Rate: ADJUSTABLE INT RATE LOAN

Lender Name: JLH MTG

Lender Address: 27001 AGOURA RD STE 200 CALABASAS HILLS, CA 91301-5357

Recording Date: 10/31/2007

Document Number: 661017

Title Company: FIDELITY NATIONAL TITLE

Construction Type: SALE IS FOR NEW CONSTRUCTION

Purchase Payment: MORTGAGE

REAL PROPERTY TRANSACTION RECORD

Filings Collected Through: 03-11-2009

County Last Updated: 03-25-2009

Frequency of Update: WEEKLY

Current Date: 03/27/2009

Source: COUNTY RECORDER , ORANGE, CALIFORNIA

OWNER INFORMATION

Owner(s): *****

Owner Relationship: HUSBAND AND WIFE

Ownership Rights: COMMUNITY PROPERTY

Additional Owner #1: *****

Owner Relationship: HUSBAND/WIFE

Owner Rights: COMMUNITY PROPERTY

Additional Owner #2: *****

Owner Relationship: HUSBAND/WIFE

Owner Rights: COMMUNITY PROPERTY

Property Address: 41 S SUR

NEWPORT BEACH CA 92657

Mailing Address: 96 ARCHIPELAGO DR

NEWPORT BEACH CA 92657-2106

PROPERTY INFORMATION

County: ORANGE

Assessor's Parcel Number: 489-151-16

Property Type: SINGLE FAMILY RESIDENCE - TOWNHOUSE

Land Use: SINGLE FAMILY RESIDENCE

TRANSACTION INFORMATION

Transaction Date: 11/07/2007

Seller Name: WL HOMES LLC

Sale Price: $7,152,000.00

Consideration: SALE PRICE (FULL)

Deed Type: GRANT DEED

Document Type: GRANT DEED

Type of Transaction: SUBDIVISION/NEW CONSTRUCTION

Mortgage Amount: $4,648,800.00

Mortgage Type: CONVENTIONAL

Mortgage Term: 30 YEARS

Mortgage Deed Type: DEED OF TRUST

Mortgage Date: 11/28/2007

Mortgage Due Date: 12/01/2037

Interest Rate: ADJUSTABLE INT RATE LOAN

Lender Name: JLH MTG

Lender Address: 27001 AGOURA RD STE 200 CALABASAS HILLS, CA 91301-5357

Recording Date: 12/06/2007

Document Number: 717219

Title Company: FIDELITY NATIONAL TITLE CO

Construction Type: SALE IS FOR NEW CONSTRUCTION

Purchase Payment: MORTGAGE
 
JLegend said:
tenmagnet said:
JLegend said:
Being the amaetur I am, I was always under the impression that buyers pretty much paid cash for multi-million dollar homes, and this was my thinking pre-bubble. I mean, if you're buying a multi-million dollar home, you are likely not a salaried employee (again, conjecture on my part), or if you are, your family has tons of money, and you work for a comparatively meager salary just to work and presumably accomplish something in life outside of familiy money. Above $300,000, you don't get salary. You either get bonuses or commission based on whatever it is you do. And anything less than a $300K salary is never going to cut it for a multi-million dollar home (whether combined or individual). If you are CEO of a Fortune 100 Company and get sizeable bonuses, why wouldn't you just pay cash outright? Again, this is aside from the bubble where everyone leveraged (obviously we are finding people couldn't afford what they purchased). On the other hand, there are those rich enough that they still can afford these types of homes. Why would you borrow?
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Interesting analysis, you’d think that would be the case.

Maybe in a few instances that’s correct.

It seems they’re using leverage just like everyone else, only on a much larger scale.

The example above, 2 Sea Glass seems to support that theory since there’s a fat $4.4M loan on it.
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To be fair, my analysis was way overbroad. Doctors (surgeons, specialists, etc.) can easily make over $500K a year, and partners at big law firms, average anywhere from $1 - 2 million a year. But even after taxes, trying to make monthly payments on a $3 million dollar note, not to mention putting aside for property taxes would be stretching even these sorts of income. If one has been practicing for 10 years or more, I can see a much larger down payment being made, making the monthly payments more palatable (relatively speaking). But still, those are massive loans that monthly payments on them (and the interest they carry) seems absurd.
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Your assessment if the partners at big law "averaging" $1-2 mil a year is a bit high.
 
update-- cracks are getting larger. counted *6* homes now in pre-foreclosure or foreclosure currently in cc (and that is excluding homes that are coming up as bank owned over on tide watch) there is still a few coral cay homes flying under the radar. graphix - show me the dots!
 
Only $11,999/month to lease in Crystal Cove. What a steal!!!!

Home Ownership is Finally Within Your Reach

Have you been declined for a home loan due to credit issues, but have a stable work and rental history? Our Rent-to-Own program has placed hundreds of people like you in their dream home while they prepared for the purchase. Stop throwing your rent money away and walk down the path to home ownership.

Rent-to-Own Terms:

Start building both a down payment and home equity today. In our program, $11,999 of your monthly rent payment and 100% of your move-in fees are credited toward a down payment when you buy. The amount you would actually finance upon purchase is $2,999,999. This low price is locked in for 15 Months. If the home increases in value, you keep all the profits if you choose to buy.
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Do you think the people behind this idea will end up sleeping in the backseats of their Bentleys and Range Rovers by the time the market has reached bottom?
 
OC Zed said:
Only $11,999/month to lease in Crystal Cove. What a steal!!!!

Home Ownership is Finally Within Your Reach

Have you been declined for a home loan due to credit issues, but have a stable work and rental history? Our Rent-to-Own program has placed hundreds of people like you in their dream home while they prepared for the purchase. Stop throwing your rent money away and walk down the path to home ownership.

Rent-to-Own Terms:

Start building both a down payment and home equity today. In our program, $11,999 of your monthly rent payment and 100% of your move-in fees are credited toward a down payment when you buy. The amount you would actually finance upon purchase is $2,999,999. This low price is locked in for 15 Months. If the home increases in value, you keep all the profits if you choose to buy.
Click to expand...

Do you think the people behind this idea will end up sleeping in the backseats of their Bentleys and Range Rovers by the time the market has reached bottom?
Click to expand...
Ahhh, the smell of desperation...don't ya love it?
 
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