Misc Aquatera

[SHELLY]

Apparently the developer owns the real estate development company, the contractor who builds, the brokers who sell the product, the mortgage company that makes the loansto buy the insurance company that does the homeowner's insurance, the title insurance compnay, the law firm that closes, the management companythat rents it for you-maybe a bit too stem to stern to pass muster

Economics 203, Lesson 3: Vertical Integration

 

[susan sanders 1]

I got some more info online

The title records show the first mortgage lender is RE Loans out of California; google that turns up RE Loans is owned by a Barney NG (the Vietnamese Dude?), He seems like a creative fellow- did the loan on the Queen Mary when it was relocated to Long Beach, Ca.

The second mortgage is held by the seller, who seems to be the developer's lawyer out of Pompano Beach?

So the developer's lawyer in Pompano Beach buys the property for $25 mil and flips it the same day to the client for $61 mil, and finances it for the client?

It gets better: the real estate records show that the first mortgage (the one now held by the Vietnamese dude) was actually assigned/sold from the developer's lawyer to him?

How come my lawyer never loaned me millions of dollars to buy something from him so he could make millions of dollars of flip profits??

That is $36,000,000 of profit for the lawyer???- that would definately change my situation~~:clap_1: :clap_1: :clap_1:

 

[Camp Creek Kid]

It is not at all uncommon for a seller to hold the mortgage for a buyer. It is done all the time as "owner financing." I wouldn't jump to conclusions here.

 

[SHELLY]

It is not at all uncommon for a seller to hold the mortgage for a buyer. It is done all the time as "owner financing." I wouldn't jump to conclusions here.

I don't see that as the issue here.

What I get out of this is the property changing hands in a single day and going from $25M to $61M (and that's even without those ubiquitous "value-adding granite counter tops!" :shock: )

The problem lies in whether the property was used as collateral (at a value of $61M) to secure some type of loan. Right??

 

[Sandcastle]

The problem lies in whether the property was used as collateral (at a value of $61M) to secure some type of loan. Right??

Exactly. If so, I wonder if the proceeds are sitting in some account in the Cayman Islands.

 

[conniedeedee]

Re: Aquatera Foreclosure

loans in default lender foreclosing; not sure if existing contracts will be kept

 

[Babyblue]

The time is coming when you'll see some folks (who "invested" in condos) coming to the sales table and have to hand over a check in order to get out from under their investment.

Then there will be those who just "drop off the keys" and will find a 1099 in their mailbox where they'll have to pay tax on the difference between what they owed the bank and how much the bank got back when they sold the place at auction.

Then there will be those who just walk away from their 20% down (pre-construction) because they can't afford to get--or the bank won't let them get--a mortgage that is 2% higher than it was when they plunked down the money. They never planned on having to actually "pay for" the property--they only planned on beating back a never-ending line of buyers begging them for the chance to take the condo off their hands at a 200% profit.

Real Estate investing certainly isn't anything like investing in penny stock--it's FAR MORE risky.

(Disclaimer: I don't do penny stocks ;-) )

Yeah...What about 85k for a lot that u can sit on forever?

 

[SHELLY]

Yeah...What about 85k for a lot that u can sit on forever?

Personally, I'd rather use the extra $85K, spend it on experiences, and enjoy it today while I'm still alive...having an additional square of dirt to deal with and pay taxes on (and that doesn't even give me the opportunity for an additional vote!) doesn't do anything for me. Different strokes.

 

[mark@humphreys.]

Re: Aquatera Foreclosure

loans in default lender foreclosing; not sure if existing contracts will be kept

g

who is foreclosing? where did you get that information

 

[whatgoesaround]

Re: Aquatera Foreclosure

loans in default lender foreclosing; not sure if existing contracts will be kept

what is happening to the Texas project then? same developer!!!!!!!!!! Mustang Island, huge project, no money or financing there either.