Crystal Cove

[quote author="skek" date=1236834269]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?</blockquote>


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

<img src="http://socalvapictures.firstamericanmls.com/MediaDisplay/59/hr96183959-1.jpg" alt="" />

<img src="http://socalvapictures.firstamericanmls.com/MediaDisplay/59/hr96183959-2.jpg" alt="" />
 
[quote author="skek" date=1238211439]-- what did the "investor" pay for this particular home? Can you tell?</blockquote>


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.
 
[quote author="skek" date=1238215707][quote author="awgee" date=1238212745]Wow! Taking a loss of more than $1.5MM. That is more than I make in a year. ;-P</blockquote>


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.</blockquote>


Do you have the addresses for the other two Seapoint models?
 
[quote author="skek" date=1238221324]37 and 41 S Sur, 92657. Thanks in advance!</blockquote>


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: *****



<strong>Property Address: 37 S SUR</strong>



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







<strong>REAL PROPERTY TRANSACTION RECORD</strong>



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



<strong>Property Address: 41 S SUR</strong>



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
 
[quote author="JLegend" date=1236833096][quote author="tenmagnet" date=1236831530][quote author="JLegend" date=1236827840]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?</blockquote>


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.</blockquote>


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.</blockquote>


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!
 
<a href="http://orangecounty.craigslist.org/apa/1076066160.html">Only $11,999/month to lease in Crystal Cove.</a> What a steal!!!!

<blockquote>

<strong>Home Ownership is Finally Within Your Reach</strong>

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. <strong>The amount you would actually finance upon purchase is $2,999,999.</strong> <strong>This low price</strong> is locked in for 15 Months. If the home increases in value, you keep all the profits if you choose to buy.</blockquote>


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?
 
[quote author="OC Zed" date=1238895436]<a href="http://orangecounty.craigslist.org/apa/1076066160.html">Only $11,999/month to lease in Crystal Cove.</a> What a steal!!!!

<blockquote>

<strong>Home Ownership is Finally Within Your Reach</strong>

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. <strong>The amount you would actually finance upon purchase is $2,999,999.</strong> <strong>This low price</strong> is locked in for 15 Months. If the home increases in value, you keep all the profits if you choose to buy.</blockquote>


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?</blockquote>
Ahhh, the smell of desperation...don't ya love it?
 
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