October 02, 2007

Welcome to the Third Avenue Lofts Lock Box Rail of Desperation in Failed Flipper Central Scottsdale Arizona



Thanks Chris at mortgage-lender-reviews.com for sending in this great lockbox from hell picture.

I KNEW I had to start HousingPANIC after seeing tiny little apartments advertised at $500,000 to $3 million. When I mean tiny, I mean as in 600 square foot studio apartments for a half mil. Seriously.

Check out this 834 square foot 1-bedroom for $719,000. $862 a square foot. Or if you financed today (jumbo 30 at 7%) it'd be $4800 a month, plus $1000 a month condo fee (gag gag) and taxes of $1000 a month, we're at $6800 a month for a FRICKING ONE BEDROOM APARTMENT THAT'LL BE LUCKY TO RENT OUT FOR $1500 A MONTH!

6800 - 1500 = 5,300 loss per month. Or a 78% fall to get back to reality.

Today 25 of the 88 units are for sale, you just know it's a building full of f*cked flippers and failed mortgage brokers, and the development now reeks of desperation and despair. Watch them race each other to the bottom now - last one out is a rotten egg! Anyone want to bet most of these units go to foreclosure?

Seriously, these hilariously overpriced bubblerific units will see drops of 50% to 70% when all is said and done. Just do the math. It's the P/E stupid. It'll always be the P/E stupid.

Man, did people lose their minds during this housing madness. Some days it's mindblowing.

55 comments:

Anonymous said...

> if you financed today (jumbo 30 at 7%) it'd be $4800 a month, plus $1000 a month condo fee (gag gag) and taxes of $1000 a month, we're at $6800 a month for a FRICKING ONE BEDROOM APARTMENT

I had to look on the title again WHERE this apartment was located - not Manhattan but Scottsdale, hahaha.

Anonymous said...

LOL, that one lockbox is hung from a cable extension because there is not enough room!!!

Anonymous said...

Yes, they just need to walk away and let the banks absorb all the losses. Besides the market is saying that the bank's losses are contained and all this is factored in, so have at it!!

FUNNOMINAL said...

The key question is how an individual can capitalize on major, radical changes in asset values. Remember, the large institutions will do whatever they have to in order control the pricing of their products (stocks, bonds,et al) and value of their inventories and cash flow. Governments will jump in also (PPT) to keep the status quo going so making $ in the biggest of crashes will be more difficult than making $ in smaller downturns.
I was a put holder going into Oct 87. I sold a few puts the day after it happened, but the market makers were screwing everyone they could and the computer terminals were way off the true market pricing going on. You couldn't put 'limit' orders in either as they were irrelevant. As soon as the floor traders sensed the big caps were heading back up they stood back from buying my puts and their value soon reflected the rising market price and lack of negative momentum.
FUNNOMINALMAN

Anonymous said...

One is just sitting on top, unattached, like they don't even care anymore. Ha.

Anonymous said...

Collapse comments

Anonymous said...
> if you financed today (jumbo 30 at 7%) it'd be $4800 a month, plus $1000 a month condo fee (gag gag) and taxes of $1000 a month, we're at $6800 a month for a FRICKING ONE BEDROOM APARTMENT

I had to look on the title again WHERE this apartment was located - not Manhattan but Scottsdale, hahaha.

October 02, 2007 3:41 PM
---------
Agreed the first thing that came to my mind was "These are Manhatten prices in the middle of the desert."

Anonymous said...

Now wait a minute. That purple modern art sculpture has got to be worth something.

Think of the endless hours of enjoyment you can have, showing people that "you've made it," by walking them over to that thing.

It'll say a lot about you.

westwest888 said...

I am really starting to get pushy with home and condo builder sales offices. I demand to know the 2009 price. I ask them when the auction is. I ask them where the auction is. I ask them how many they've sold, and how many they reasonably expect to close. I ask them for HUD1 forms to see recent sales. I'm getting plain rude because what choice do they have but to talk to me.

brokersleaveyoubroke said...

Huh? I went to the site. There's exposed pipes all over the rooms. That might be chic in a converted Manhattan loft but in Scotsdale it just looks stupid. Also, there is a 900 SF unit listed for 450K and an 800 SF unit listed for 700K. I think the guy listing for 700K is in for a nasty reality check.

Anonymous said...

Check out this 834 square foot 1-bedroom for $719,000. $862 a square foot. Or if you financed today (jumbo 30 at 7%) it'd be $4800 a month, plus $1000 a month condo fee (gag gag) and taxes of $1000 a month, we're at $6800 a month for a FRICKING ONE BEDROOM APARTMENT THAT'LL BE LUCKY TO RENT OUT FOR $1500 A MONTH!


==============

Dude you are bullshitting. No way a condo's taxes are $12K a year. And no way HOA is $12K a year either. I owned a home in Scottsdale up until 2006 and my taxes for it were less han $3K. No way a 600 sq ft condo's taxes are 4 times that.

$500K is ridiculous for a studio, no argument there.

Anonymous said...

I was there with my friend checking out these units.

It was ridiculous, we couldn't even get the box off the rail.

Enjoy.

-chris
_________
http://www.mortgage-lender-reviews.com

Greyhound said...

Consider the HOA's plight. Somebody has to pick up the tab or suffer the consequences of lost services in these under-funded associations.

Not is your ARM adjusting but now you're getting letters ... something about "special assessments". OUCH!

SPECTRE of Deflation said...

It's like the tech melt down only far far worse. This time everybody gets to come to the party, and the surprise is/will be something to remember. My grandchildren will read about it and scratch their heads as to how could anyone could be so stupid.

Anonymous said...

The picture of the lockboxes is hilarious( did i spell it right ?)

Anonymous said...

"lose their minds during this housing madness"

**********************
Sheeple never had minds to begin with.....Must believe MSM...I am a robot....must buy...must use credit card....

I just feel like screaming:
DANGER! WILL ROBINSON!!!
**arms waving up and down ***

Britney Spears said...

That lockbox on the left is mine, I don't even lock it anymore

Anonymous said...

Looks like we've got a few novices about to be schooled in the down side of Leverage financing. Basically their toxic loan was nothing different than a short term bridge loan until the deal could be done. In an LBO it comes in the form of selling the debt that the investment bank underwrote to then make the bond offering to investors. Here its the GF who will come forward and purchase the asset and pay off the seller's bridge. But just as investment banks had bridge loans turn into pier loans, flippers are being forced to accept their short term toxic financing as a long term financing vehicle, which the flipper is just not equipped to keep in his or her books. Drama price and short sell the damn thing or just walk away. Lesson learned.

Looks like there is some sort of note attached above all the boxes, can't read it though. Any one got better eyes?

Looks like there are two boxes hanging off the rail with a chain.

Anonymous said...

Oh please - what a deal. Wow that apartment has a pool view? That's worth what - at least 250K right there! Don't forget the sumptuous 800 square feet of total luxury! And the view from the commons area - this place is going to go fast - hurry! You never know if you'll run into a deal like this again - prices never go down you know!

Anonymous said...

I dont understand - can somebody please explain what exactly all those locks are doing there?

What does it mean???

Anonymous said...

funnominal
it is amazing at how regulators look the other way at the big violators. great response and sady so true.

Budvar said...

Yebbut the Dow is up, gold's a relic, ipods are selling like hot cakes so er.. these place have got to be worth every penny, so er.. you'd better buy now before being priced out forever!!

Anonymous said...

.


Those look exactly like the testicle lockboxes Hillary Clinton will put on every male when she's elected!



.

Anonymous said...

.


This makes it obvious that this is a great opportunity to buy one of these dream units in the very cosmopolitan city of Scottsdale!


Call me,

your local realtor and new best friend.



.

Anonymous said...

.





Oh S**T!




.

Anonymous said...

.



VOMIT!!!!!



.

Anonymous said...

Dude you are bullshitting. No way a condo's taxes are $12K a year. And no way HOA is $12K a year either. I owned a home in Scottsdale up until 2006 and my taxes for it were less han $3K. No way a 600 sq ft condo's taxes are 4 times that.
--------------------------------------

are property taxes in scottsdale based upon square footage? In most places it is based on the assesed value of the property. If a 600 sqft condo sells for 500k, the taxes would be way more than 3k/yr in most places in the US.

Anonymous said...

Hey where's all the hot babes lounging by the pool? (not a soul in sight)

Where's the wine and cheese parties?

You said I could flip for 40% profit!

Looks like a deserted industrial strength building to me.....

WAAAAAAAA!!!!

Anonymous said...

It means all of their negative equity is being protected and locked up until you guess the combination.

Stuck in So Pa said...

Anonymous said...
Check out this 834 square foot 1-bedroom for $719,000....


==============

Dude you are bullshitting. No way a condo's taxes are $12K a year..."

I did a quick number crunch. That $719,000 "1-1/3 times the size of my living room" would cost you over $13,000 a year JUST in school taxes here in southern York County, Taxsylvania. Add another $3000 for the county and that makes a grand total of $16,000 per year. No bubble here, NOTHING HERE, except greedy, all-powerful state employee and teacher's unions! $12k a year is not out of line, but the prices of those sun baked sh#tboxes sure are! Going to be a long slow trip to the bottom.

Anonymous said...

but i thought we all were trumpettes

Anonymous said...

will it not drive up the local property taxes in real dollar amounts on anybody that has not a cost of living adjusted government paycheck in this corporate bought government land grab scheme...

Anonymous said...

anonymous @4:23,

It's a "luxury condo" the HOA covers the security guards, the pool staff, the maintenance people, the fitness center, etc, etc. Here's one, mind you over 2000 square feet in that building with a HOA of almost $1k/mo: http://www.shortsign.com/show.php?id=658

tax wise, yet $1k a month is an order of magnitude too high, try per year, unless they have special tax rates for idiots?

Anonymous said...

and to think i did not buy the unit down the street for 60,000 in 2001 because the 200 dollar association fee made me feel troubled by my inability to control it rising costs....pennywise and pound foolish...in a moronic economy and market, and a saver...like those who made our nation great?...stupid...stupid...stupid

Anonymous said...

"testicle lockboxes"

BWAAAAAAAAhaaaahaaaaaaaa!!

ace said...

I saw a rope hanging from the roof...Is that for the flippers to hang themselves....

What happens to the HOA payments when all the investors start Jumping..

Can an HOA go BK...

maybe they can convert the property to a low income apartment building....

Anonymous said...

are property taxes in scottsdale based upon square footage? In most places it is based on the assesed value of the property. If a 600 sqft condo sells for 500k, the taxes would be way more than 3k/yr in most places in the US.

October 02, 2007 5:56 PM


=================================

My home in Las Vegas was in the $500K range and I paid $2800 in taxes for 2006 which was the last year I lived in the home before selling.

No way a condo, even a $500K condo's taxes are $1000 a month, nor is HOA $1000 a month. I don't care where it is.

Chris, Slacker from Bubble Loot said...

Pasted from Scottsdale Condo Mania's site.....
"Before you ask for $30,000 off List... : According to Arizona Regional Multiple Listing Service statistics, sellers are still usually getting on average over 95% of their asking price, and in many zip codes, the percentage is over 97%. That shocks some out-of-state bargain seekers that think they'll swoop in to get properties at 50 cents on the dollar."

There must still be bidding wars in Scottsdale according to "ARMLS statistics"...just noticed ARM is in that acronym

Lost Cause said...

Wow, apartments in Scotsdale. And the penthouse in that place (maybe the fith floor, haha!) is $2.5M.

brokersleaveyoubroke said...

Anonymous said...
I dont understand - can somebody please explain what exactly all those locks are doing there?

What does it mean???

Each lock box means an empty condo. There's nobody there to answer the door so the door key is kept in that little thing called a lock box. The realtor has a key to the lock box so he can get the condo key so he can show the place. A lot of lock boxes means a lot of empty condos.

Anonymous said...

Somebody...please give me the number of the realtor!!! Please...I have to buy this now or I will be priced out forever...Please this is my last chance to own a prime piece of property like this to raise my family. I am begging...oh wait...it is not 2005 any longer...Sorry I just lost my interest, but tell you what. I will pay $35,000 for this piece of crap in the desert!!! HA HA HA flippers!!!

Frank@NeverColdCall.com said...

What's really crazy is this is in downtown Scottsdale where crime is out of control. My girlfriend got her car broken into twice in that neighborhood, another girlfriend got her car broken into, a friend's roommate got her car vandalized at night for no reason (all the windows were smashed), there have been numerous armed robberies at CVS and Walgreens stores in the past several months, it's got the 2nd highest burglary rate in the Valley after the bad part of NE Phx (around Cave Creek/Bell Roads), and Channel 3 named the area the #1 "rape zone" in the Valley.

And they thought people would pay top dollar to live THERE???

Anonymous said...

Hey where's all the hot babes lounging by the pool? (not a soul in sight)

Ha. I was wondering that too. Their advertising department was sleeping on the job. Should have called a modelling agency. Fill the pictures with beautiful people at the pool and having dinner parties in their luxurious walk-in closet-size condos. LOL

keith said...

My mistake - the $1000 a month was my estimate for taxes, insurance and maintenance, pretty conservative.

Or hell, take that whole $1000 out, take out the condo association fee, and you're still a f*cked flipper who didn't understand that houses (and condos) have an inherent P/E ratio

But oh, will they.

E-Rod said...

Lock Boxes are selling like hotcakes!!

Anonymous said...

RE: lock boxes

Those would have been around during the boom as well. Unlike you renting welfare recipients, people with jobs can't be home 24/7 to show their condos, hence the lock box.

Anonymous said...

anonymous @ 10:10,

generally you expect some of the units to actually be rented out and hence not have a lockbox. Given the number crammed into the available space in the picture, either the picture is a setup or there are way more vacant (and hence not generating any rent) units then you would want as a landlord - supply and demand and all that...

Anonymous said...

Looking at the picture of the realtor on that site, ever notice how they are attractive, but in a weird sort of way?

Lost Cause said...

Condos in OC do have $1120 per month association fees. And yes, the taxes can approch $1000 a month, with high prices. Here's a sample.

Anonymous said...

It doesn't matter because everyone wants to live in Arizona, California, Idaho, Washington, Virginia, Maryland, New York, Pennsylvania, Oregon, Hawaii, Mass, Vermont, Connecticut, Tennessee, Carolinas, Montana, Illinois....did I leave anything out?

Anonymous said...


My home in Las Vegas was in the $500K range and I paid $2800 in taxes


It depends on the state. The property taxes in Texas are around 3.25%

A $500K home would be burdened with over $16K in property taxes.

Anonymous said...

You go live in your damn box rodent. Unsettling sounds, sniffing at strange smells, and uncomfortable temperatures in your chic loft. Sweat it out with the fake fucks, Scottsdale assholes who are intolerable in the best of times. Watch em when they're losing money, and you're losing everything you worked hard to have.

Good times.

Anonymous said...

Looking at the picture of the realtor on that site, ever notice how they are attractive, but in a weird sort of way?

So you like those better-do-a-croch-check types?

Okay....

Anonymous said...

"Looking at the picture of the realtor on that site, ever notice how they are attractive, but in a weird sort of way?"

You mean in a weird sort of "I will exchange sex for sales" way. Yes. Like an android, electric wires showing through in some places.

Anonymous said...

saw a 2bd 2bth condo/apt around there for 37.000 in 2001 that did not sell for months...

Anonymous said...

I live in that building, bought my position there in Jan 2003.

I wanted to clear-up the fuzzy math used in this article. Based on SF the property taxes would be $142/month and HOA would be $470/month. This means this article misstated monthly expenses by $2,000 - $612 = $1,388 per month which is quite substantial.