WhoopRAB said:
A&M housing development Park West with roof top pool and 3,400 beds is defaulting on July debt payment. Moody's lowers the bond rating to Caa2 which is 8 steps below investment grade.
Do we know who holds the encumberance?
Real estate market is in a full blown correction
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Last: 2 yr ago by fig96
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Do we know who holds the encumberance?
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Just got an email from a highly reputable Texas based builder saying they are now offering 5% commissions to agents who's clients buy any inventory home.
This is on top of the email from same builder yesterday who is offering more than $15k towards buyers closing costs.
I think those two data points confirm what was said over the last few days about builder sentiment, housing starts, etc.
This is on top of the email from same builder yesterday who is offering more than $15k towards buyers closing costs.
I think those two data points confirm what was said over the last few days about builder sentiment, housing starts, etc.
Probably significantly missed on the occupancy rate. Just looked at it on street view... jeez that thing is freaking massive.Diggity said:I get that Covid was disruptive for a period, but how is it possible that the ****ed the proforma up this badly?Quote:
Rent levels within the Park West submarket remain far below underwritten levels. For Park West to break even, revenue from student leases would need to grow by over 40%, based on 2021 operations.
So they have near max occupancy but need to increase revenues by 40%? Seems like basic math to me, and they didn't do any when they set their rental prices.
Exactly. "On a positive note". Sounds the opposite to me.
Whoever underwrote that thing was on crack, that's a huge miss.
Are their rents way below market or something? Struggling to see how this is even possible in this environment.
TxAG#2011 said:
Are their rents way below market or something? Struggling to see how this is even possible in this environment.
Maybe they went overboard with kickbacks/rebates for students that signed leases?
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And they wonder why some lenders (cough cough GSEs cough cough) refuse to do anything but actual collections data and not pro-forma underwriting.flyingaggie12 said:
Whoever underwrote that thing was on crack, that's a huge miss.
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There was a ton of competition post "COVID" to get students to come back. So as an operator - you really couldn't raise rents high enough because otherwise you'd have no takers and a bunch of empty beds.TxAG#2011 said:
Are their rents way below market or something? Struggling to see how this is even possible in this environment.
Park West is getting pressure from all the other Luxury Student Housing complexes in town not to mention the Barracks four plexes and townhomes that have their own waterpark.
I was talking to a guy the other day at church that said many builders and developers were expecting a huge addition to the student population with RELLIS that just has not panned out.
I was talking to a guy the other day at church that said many builders and developers were expecting a huge addition to the student population with RELLIS that just has not panned out.
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Hornbeck said:
….that have their own waterpark...
Side note, this is one of the biggest reasons why I'm against student loan forgiveness.
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Red Pear DFW Luke said:
Just got an email from a highly reputable Texas based builder saying they are now offering 5% commissions to agents who's clients buy any inventory home.
This is on top of the email from same builder yesterday who is offering more than $15k towards buyers closing costs.
I think those two data points confirm what was said over the last few days about builder sentiment, housing starts, etc.
we just got a bunch of rate lock incentives and bonus incentives for ourselves. (nationwide)
Since posting this I got a 30 day Texags time out (don't know why because I don't have access to that email)
But in that 30 days we sold 3 mobile home friendly lots in Johnson and Hood county for 64k, 74k, and 70k. Two cash one financing.
We sold two houses in mcgregor that need full remodels for 74k and 73k, one cash one financing, both ****holes.
We received a cash offer on a 80's model two two trailer in Keene Texas for 80k
Our Granbury 2/1 cabin is rotting on the market for 75k. About to rent it for $1000 a month.
Owner financed a 3/2 mobile in Mabank for 140k
Rented a 47k 3/2 mobile in Mabank for $1200 a month and had 15 applications for rent, but 0 showings when we listed it for sale at 90k
Sold a 3/1 in Troup for 135k financed (5k over asking)
Sold two 80's model trailers on one lot in Stephenville for 80k cash.
And sold 9 acres of land in Groesbeck for 135k cash.
Our lots in San Antonio, Waco, Belton, and Groesbeck have almost no interest. So if you know a builder we will most likely build those out while no one is building.
This week we close on the purchase of a 38k house in Mansfield in a 200k neighborhood, 16 acres of east Travis county land with two mobiles and a shop for 500k, and a 145k house in Cedar Hill that sits in a 270k neighborhood that we will install flooring in and list for 255k for sale and $2500 a month for rent, first person to pull the trigger will get the house.
Although our note sales on paperstac.com are starting to slow down. We've been getting 80% of UPB for unseasoned notes, now there's hardly any interest. So that will slow money down.
So overall this market is confusing. I'm still just underwriting everything at a 2% rental/ 2x owner finance, buying it, cleaning it, then introducing it to the market. And most everything at our price point sells pretty quickly.
But in that 30 days we sold 3 mobile home friendly lots in Johnson and Hood county for 64k, 74k, and 70k. Two cash one financing.
We sold two houses in mcgregor that need full remodels for 74k and 73k, one cash one financing, both ****holes.
We received a cash offer on a 80's model two two trailer in Keene Texas for 80k
Our Granbury 2/1 cabin is rotting on the market for 75k. About to rent it for $1000 a month.
Owner financed a 3/2 mobile in Mabank for 140k
Rented a 47k 3/2 mobile in Mabank for $1200 a month and had 15 applications for rent, but 0 showings when we listed it for sale at 90k
Sold a 3/1 in Troup for 135k financed (5k over asking)
Sold two 80's model trailers on one lot in Stephenville for 80k cash.
And sold 9 acres of land in Groesbeck for 135k cash.
Our lots in San Antonio, Waco, Belton, and Groesbeck have almost no interest. So if you know a builder we will most likely build those out while no one is building.
This week we close on the purchase of a 38k house in Mansfield in a 200k neighborhood, 16 acres of east Travis county land with two mobiles and a shop for 500k, and a 145k house in Cedar Hill that sits in a 270k neighborhood that we will install flooring in and list for 255k for sale and $2500 a month for rent, first person to pull the trigger will get the house.
Although our note sales on paperstac.com are starting to slow down. We've been getting 80% of UPB for unseasoned notes, now there's hardly any interest. So that will slow money down.
So overall this market is confusing. I'm still just underwriting everything at a 2% rental/ 2x owner finance, buying it, cleaning it, then introducing it to the market. And most everything at our price point sells pretty quickly.
Where is your lot in Belton?
Headline is a bit "clickbaity" but article itself is more grounded.
Would love to get around the paywall if someone has a good way to do that.
Redfin's chief economist says the housing market correction has begunand things are going to get worse before they get better
Would love to get around the paywall if someone has a good way to do that.
This quote encapsulates a lot of what people have been saying on this very thread...so we're clearly all geniuses.Quote:
Redfin's chief economist Daryl Fairweather told Fortune in an interview. "But that has slowed down a lot since the Fed raised interest rates and continues to raise interest rates. It's now almost 30% more expensive to buy a home than it was just a year ago, so that's certainly slowing down demand. Also, home sellers don't need to participate in this market. They got record equity last year because of the increase in home values."
Redfin's chief economist says the housing market correction has begunand things are going to get worse before they get better
agsalaska said:
Where is your lot in Belton?
2 N Bowman
https://www.zillow.com/homedetails/2-N-Bowman-Dr-Belton-TX-76513/2063002315_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare
On the market 53 days now without an offer. We've reduced our price by 50K. Never thought this would happen.
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How are the showings going? Are you getting any?
Remind us of you're city you live in?
I'll be honest - it's tough out there and the macro uncertainty has not been helping.
Remind us of you're city you live in?
I'll be honest - it's tough out there and the macro uncertainty has not been helping.
You thought we were in a market that couldn't correct or decline? As I was watching people bidding against others and probably often against themselves I kept thinking we're about to be back to people being underwater on their houses.
Red Pear DFW Luke said:
How are the showings going? Are you getting any?
Remind us of you're city you live in?
I'll be honest - it's tough out there and the macro uncertainty has not been helping.
I'm in Lancaster California trying to move to Denver.
I'll say we had the house in the market Memorial Day weekend. Did not get any showings for 3 weeks. Wasn't sure if the issue was the price or the hesitancy if the buyers. Since dropping it 50K, we may get 1 showing a week.
jja79 said:
You thought we were in a market that couldn't correct or decline? As I was watching people bidding against others and probably often against themselves I kept thinking we're about to be back to people being underwater on their houses.
Not sure where this is coming from. Of course I knew the market would make a down turn.
Maybe I misread your comment that you never thought this would happen.
Probably coming from your comment
"Never thought this would happen"
"Never thought this would happen"
There's a chance the big project going on at home right now will put me in the underwater to low equity camp, but since this is the forever house it's not really so important to me. Doesn't feel great though.
aggiedata said:
Probably coming from your comment
"Never thought this would happen"
Well, let's just say when I accepted the job in March, I didn't think I would have trouble selling the house.
I thought the same thing every quarter and then I was finally right!jja79 said:
You thought we were in a market that couldn't correct or decline? As I was watching people bidding against others and probably often against themselves I kept thinking we're about to be back to people being underwater on their houses.
Anecdotal: just sold in NW Austin for a few k under asking at about 3 weeks on market, dropped the price 10k after 2 weeks because we needed to get it sold fairly quickly but still sold over what we'd initially planned back in the fall. Lots of showings, probably a few more offers coming had we waited a bit longer.
So took slightly longer than we'd hoped but it feels like homes that are priced well are still moving.
So took slightly longer than we'd hoped but it feels like homes that are priced well are still moving.
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