Here's a story from Vegas about with a realtor who lost $200,000 in commissions. Also a note that if the developer didn't BRIBE realtors, they didn't get sales contracts and ended up folding. What a sick system. Wow.
Beverly Lacey will show high-rise luxury condos to clients if that's what they want to see, but she feels obligated to warn them of the challenges and pitfalls exposed by Las Vegas projects that have fallen by the wayside.
Lacey, owner and broker of Vertical Vegas, said she was heavy into sales at Krystal Sands and Aqua Blue last year when developers canceled the projects. It cost her about $200,000 in commissions.
"Sometimes a dose of reality is a good thing," she said. "You've got to roll with the punches.
Yeah, I ate it for a couple hundred thousand in commissions, but you have to move forward."
Lacey is among a handful of brokers who worked long hours catering to clients and building relationships with developers only to be left hanging over defunct projects such as Krystal Sands, Aqua Blue, Hard Rock Hotel, Ivana Las Vegas, and Icon.
Several lawsuits alleging breach of purchase contract have been filed on behalf of buyers as a result of the Las Vegas high-rise fallout.
Most brokers will never see payment. High-rise failures in Las Vegas reverberated to Wall Street, where financial institutions have become more leery about making construction loans. The failures have also put a crimp in brokers' bank accounts.
"In this market, you look for things that are going to happen," said Todd Grotstein, director of high-rise division for Prudential Americana. "One of the things you look for is if the developer is willing to pay commission to the brokers. If you look at the ones that did not go, consistently most of the ones that did not move forward never paid a dime in commissions."
June 15, 2006
Something we haven't addressed - cancelled condo projects and withdrawn commitments to buy are killing realtors' commissions
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So many counties and cities in the sunbelt are dependent on these projects to expand their tax base and the suckers who have been buying in and paying property taxes on 50 percent inflated property assessments. I'm somewhat familiar with south florida, broward and palm beach counties could become insolvent because they can't raise taxes on existing owners and have spent every dime collected from the buyers of the last few years. Gonna be fewer cops on the street in some areas in the coming years.
Mabye she can team up with Suzanne and open a research company. What a shame, does the $200,000 in lost commissions mean that she will have to send back the Lexus?
Anonymous said...
So many counties and cities in the sunbelt are dependent on these projects to expand their tax base.......they can't raise taxes on existing owners......Gonna be fewer cops on the street in some areas in the coming years.
Why can't they raise taxes on existing owners (to the moon)? Is there some kind of Prop 13 in Florida?
Keep the cops, dump the useless politicians and tax assessors.
Ok here is my story as well as a test to see what is actually going on in the lending world.
Recently I thought I would test the waters to a refinance, and let me say it is amazing how much things have changed in 15 years.
I bouught my home 15 years ago, for $86,500 and refinanced back in 2000 and now owe $208,0000.
So that being said, this women who freqents my wife's store came in one day and said she was a mortgage broker, so my wife said really my husband has been thinking of refinancing, really the women said, maybe i can help.
So i give her all my info you know the usual SSI bla bla, so the women says of course how is your credit, i say great as far as i know, as i have no debt other than the house, no credit cards and no car payments, as well as no lates what so ever..ok.
She calls me yesterday to tell me my scores were low, why for the life of me (i cant figure out how they could be low,)?? anyway, she says, but i have to put together a couple of plans for you.
But let me add i said nothing but a 30 year fixed rate or nothing at all, she says yup no problem the night before.
So she came over last night and told me the usual, appraisal, will need to be done and so on and so fourth, i said i had the house appraised in 2000 and it came in at $280,000, she said great, .
So she proceeded to tell me her packages she put together, here they are in a nut shell based on my 720 credit score and she said 85%LTV.
40 YEAR AMITRORIZED with 2 year fixed and the rest ajustble.
2 YEAR FIXED ARM IO FIXED FOR 5 YEARS
last one
1 year fixed the rest ARM
not one time did she mention a 30 year fixed rate mortgage to me.
so i then started meesing around with her brain, as i am not a new comer off of the street, i mean i have owned a home for 15 years.
I started with the stock market and assest bubbles, housing bubbles , and she just stood there looking at me with this blank look on her face like what are you talking about.
Then she turnes to me and said, well i spoke to my boss and he said rate are not going to go up.
Ya ok I said, she also kept saying to me which got annoying after awhile, i just like helping people get what they need (more like putting then on the street with those loan programs).
anyway i could go on as now i feel she is stalking us for her business, finaly i just turned and was blunt as blunt can be, unless you can offer me a 30 year fixed rate at less than i am now (6.25) I HAVE NO OTHER REASON TO TALK TO YOU ! and hung up the phone.
She called back (yes) again with the i like helping people and just thought you needed the money (not one time did i say i needed cash not one time)
moral of the story is here
GREEN SPAN PUT US HERE YES, but the lenders feed the fire, anyone who would put their home in jepordy for a few dollars deserves what they get..
peace!
I seriously doubt filing out some paperwork is worth $200K in commissions.
I tell you. things are getting so hard for me.
I may have to find a job to supplement my lost real estate commissions
It cost her nothing but time. She had no skin in the game!
I bouught my home 15 years ago, for $86,500 and refinanced back in 2000 and now owe $208,0000.
??????????????
You want to explain this? Refinanced for more than the house was originally financed for? Using your home as an AMT huh? Bravo, great idea. Typical humanoid who is trying to live beyond his means.
I bouught my home 15 years ago, for $86,500 and refinanced back in 2000 and now owe $208,0000.
??????????????
You want to explain this? Refinanced for more than the house was originally financed for? Using your home as an AMT huh? Bravo, great idea. Typical humanoid who is trying to live beyond his means.
no the facts first before you streotype me shit for brains,
I added a new wing on the house do to the fact i was having another child, sorry i did not have $65,000 in cash lying around. ATM nothing added to the home i did not take away and go on vacation or buy a hummer. So that is the explanation not that i give a rats ass to explain to you my business.
Why waste your time with a mortgage broker? Go to a bank or call a direct lender (i.e. Countrywide, etc.). 720 is obviously not a low score, and with the equity you have, you are probably conforming all the way.
Now if you were dealing with her just for laughs, then good job!
correct just for laugh's dont need no cash, have that covered.
To "stuck in so pa"
I think its called the "save our home" law or something, but basicly yeah its the same as prop 13, max 2 percent per year increase in property taxes once you've bought in. The people who bought 5 years ago are paying $2000 a year and the people who bought last year are paying $8000 a year, another ponzi scheme.
Thank you.
you tard. You owed $86500. You say you needed $65,000 for the new addition yet you refinanced at $208,000. Somewhere you left out the ATM'ed $30,000+ that you pissed away and now pay interest on becasue you had to keep up with the joneses.
I don't have to do that. My $350000, 4800sq ft. energy SUPER efficient home is $500/mo P&I because it is not needed as an ATM.
LOSER!!!!!
you tard. You owed $86500. You say you needed $65,000 for the new addition yet you refinanced at $208,000. Somewhere you left out the ATM'ed $30,000+ that you pissed away and now pay interest on becasue you had to keep up with the joneses.
I don't have to do that. My $350000, 4800sq ft. energy SUPER efficient home is $500/mo P&I because it is not needed as an ATM.
LOSER!!!!!
I have nothing more to add other than to say your numbers dont add up $500 ya sure! and trust me i may have borrowed and put back in but i am far from leveraged..and live just fine and owe nothing..you on the other hand
sound like a bullshit artist who needs to take classes on spelling (shiat) ya and im the loser.
$oh and if the %500 is true good for you been there, but isnt even $500 alot? I mean i did not realize walmart was giving out raises. Both of you dicks CAN BITE ME!
ok ok the other 30 i pissed away went to a 20x20 inground pool with all the goodies by the way...just encase your wondering...my back yard is my vacation spot...
28x30 my bad, sorry losers have bad memories.
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