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How are they screwing people? If it's beyond whatever they would recover to
1) finish the unbuilt places (and remedy the fact that the exposed materials don't survive well in the open elements), 2) repair the extensive damage to the nearly-finished houses and 3) build the infrastructure required to sell them
why would anyone do it? It makes zero sense.
They said it would take 1 million to bring the houses up to speed, that figure is probably high because banks lie about everything, but we will use their figures. There were 4 model houses and 12 unfinished houses for a total of 16, that would put the cost to bring them up to speed at 60k per house. Would you buy one of those houses for 60K?
They said it would take 1 million to bring the houses up to speed, that figure is probably high because banks lie about everything, but we will use their figures. There were 4 model houses and 12 unfinished houses for a total of 16, that would put the cost to bring them up to speed at 60k per house. Would you buy one of those houses for 60K?
No I wouldn't. And I don't think $60K per house is unrealistic - there was incredible damage done to everything out there. Not to mention the fact that if I'm selling new houses I have to warrant things for I believe 10 years in California. That's a great leap of faith to take on what's been open to vandals for so long.
The models I wouldn't touch for $60K because
$60K + cost to repair the damage > sale price minus cost to sell
The economics aren't there.
But the unfinished ones are a worse deal because of all that has to be scrapped from the beginning. Things like insulation, plumbing, wires, house wrap, even framing lumber. They don't handle being exposed to the elements well and if they've been out there more than a few months are unusable. Once again we have
$60K + cost to dispose existing damaged materials + cost to build > the sale price
It's like a car - at some point you've gotta let it go when it costs more to bring back into good condition than it's worth. Things do get damaged beyond economic repair.
No I wouldn't. And I don't think $60K per house is unrealistic - there was incredible damage done to everything out there. Not to mention the fact that if I'm selling new houses I have to warrant things for I believe 10 years in California. That's a great leap of faith to take on what's been open to vandals for so long.
The models I wouldn't touch for $60K because
$60K + cost to repair the damage > sale price minus cost to sell
The economics aren't there.
But the unfinished ones are a worse deal because of all that has to be scrapped from the beginning. Things like insulation, plumbing, wires, house wrap, even framing lumber. They don't handle being exposed to the elements well and if they've been out there more than a few months are unusable. Once again we have
$60K + cost to dispose existing damaged materials + cost to build > the sale price
It's like a car - at some point you've gotta let it go when it costs more to bring back into good condition than it's worth. Things do get damaged beyond economic repair.
This is BS, you are speculating about things, you do not know about. I invest in real estate in Riverside Co. I have seen these houses and I would have bought them in a heartbeat and made 1.5 to 2 mil on the deal.
This is BS, you are speculating about things, you do not know about. I invest in real estate in Riverside Co. I have seen these houses and I would have bought them in a heartbeat and made 1.5 to 2 mil on the deal.
I find it interesting that someone with the expertise and vision could not have made this work - I assume the structures were solid and fixing the infrastructure was not insurmountable.
In my area a neighboring town basically condemned and razed an unfinished condo complex a couple of years ago. If those homes had been as picked over a couple of people suggest and open to the elements I guarantee you the banks legal council was also yelling 'raze' at the top of his/her lungs as well.
Putting in roads/water & sewer lines/sidewalks takes time. And if they are not in place yet the bank might be stuck paying fines til they were all in and up to snuff. And with no guarantee the houses would sell I think it would be pouring good money after bad to sink another $1mil into infrastruction, a couple of hundred apeice on 8 other homes and a tens of thousands on each of the existing four. Thats probably 2.5 to 3 million just to get to a point that everything is salable.
I think taking them down was prudent and even defensible from a public safety standpoint. And if the bank goes into default it won't be stuck with a mini-sudvision with a couple of Bluth houses tha makes it look inept.
I've worked on projects (from the arhictecture end) that had the plug pulled becuase even though X dollars were invested, changes in the market, increases in construction costs and tighter codes (meaning someone drug their feet and faced higher construction costs) pushed the cost of the proposed properties beyond what the people were willing to spend. Like Kenny sang- you gotta know when to fold them. And chalk the initial $ up as a lesson learned.
In my area a neighboring town basically condemned and razed an unfinished condo complex a couple of years ago. If those homes had been as picked over a couple of people suggest and open to the elements I guarantee you the banks legal council was also yelling 'raze' at the top of his/her lungs as well.
Putting in roads/water & sewer lines/sidewalks takes time. And if they are not in place yet the bank might be stuck paying fines til they were all in and up to snuff. And with no guarantee the houses would sell I think it would be pouring good money after bad to sink another $1mil into infrastruction, a couple of hundred apeice on 8 other homes and a tens of thousands on each of the existing four. Thats probably 2.5 to 3 million just to get to a point that everything is salable.
I think taking them down was prudent and even defensible from a public safety standpoint. And if the bank goes into default it won't be stuck with a mini-sudvision with a couple of Bluth houses tha makes it look inept.
I've worked on projects (from the arhictecture end) that had the plug pulled becuase even though X dollars were invested, changes in the market, increases in construction costs and tighter codes (meaning someone drug their feet and faced higher construction costs) pushed the cost of the proposed properties beyond what the people were willing to spend. Like Kenny sang- you gotta know when to fold them. And chalk the initial $ up as a lesson learned.
What are you talking about? Who builds homes without any infrastructure? Do you really think they went out and built these houses without water, sewers, and roads? Why am I even wasting my time...............never mind.
This is BS, you are speculating about things, you do not know about. I invest in real estate in Riverside Co. I have seen these houses and I would have bought them in a heartbeat and made 1.5 to 2 mil on the deal.
Ok, fine. The engineer doesn't understand how residential construction materials degrade after exposure to the elements...
You don't have a leg to stand on here. You complain about speculating on the condition of the raw materials, and then go on to speculate on how much you could've made? I'd love to see some of the houses you've built with all of your bowed and UV-damaged lumber. Nice, straight walls I'm sure.
I'll admit i didn't read all the posts so if I'm repeating - sorry.
There is a local builder here in NC that has filed for BK and laid of 90% of its employees. They have dozens of half finshed homes in several towns. 1 of the towns has threatened to go in and level the homes after declaring them a nusciance if they don't get back to work on them- which obviously they can't at this time. Could be something similar happening with these houses.
It's just wood and stucco and drywall (lots of it probably damaged). They still own the property which I assume is worth a lot more than a trashed and gutted house. Maybe the insurance company paid for the loss?
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