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bpe3

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About bpe3

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  1. For the record, my primary business is brokering commercial real estate loans. I've closed over $2 billion in CMBS and life company loans in the last 5 years alone. At least 75% of those have been multi-family. Earlier in my career I worked for a Fannie Mae DUS shop doing nothing but underwriting multi-family loans. I think I know a thing or two about underwriting. I wasn't underwriting the deal. That's why it called it some "quick math". It nothing more than a back of the envelope estimate of what this deal might be throwing off. If anyone really wants to know how a deal like this really underwrites, I'd be happy explain it. Did I miss something? I don't recall getting an economics lesson from you at all. bpe3
  2. Texas real estate brokers are required to deal with everyone (buyer and seller) in a FAIR and HONEST manner. At the same time, a selling broker has a fiduciary duty to his client to act in seller's best interest. If mutilple offers exist, it is well within a selling brokers rights to leverage them for their clients benefit. In fact, not doing so may be a violation of their fiduciary duty. On the other hand, manufacturing bogus offers in an effort to extract a higher price from a buyer clearly is dishonest and could result in loss of the broker's license. bpe3
  3. Well... It looks like the "renovation" is "complete". The fence has come down and now there are For Lease signs in each and every window. I assume that means they don't have a single tenant lined up. There's nothing like undertaking a muti-year renovation of a consistently 100% occupied property only to end up with a property that looks nearly identical, yet has 0% occupancy. Now that they are "done", they get to enjoy a few years of rail construction that will forever ruin Richmond for vehicle (read: customer) traffic. Somebody really dropped the ball on this deal. bpe3
  4. Here's some quick math: 900 units @ $90,000/unit = $81,000,000 value X 5.5% cap rate = $4,455,000 NOI/year = $371,250/month. Assuming they tore down 2/3rds of the units, the early demolition is costing them $245,045/month in foregone cash flow. It's not the kind of money that will make or break this project. At the same time, it's enough to get someone's attention. No smart delevoper would just leave this much sitting on the table. Clearly they thought they'd be going vertical by now. bpe3
  5. Standard Operating Procedure is to keep the tenants as long as you can by converting leases to month-to-month as they roll. When you're ready build, you give them 30-days notice to vacate and the bulldozers come in a week later. The Regent Square developers told the tenants to get out because they thought they were ready to build. They weren't. They had to go back to the drawing board because their previous plan didn't work. They left a lot of money on the table with their hasty demolition. I'm curious to see how their scaled down project works out. Only time will tell. bpe3
  6. It's actually 30 feet short of a mile. Article from UK Daily Mail
  7. bpe3

    Tremont Towers?

    I don't think the existence of a 2nd lien would cause a single foreclosure event to count twice. If a first lien is foreclosed, the second lien is wiped out. Two lenders can't foreclose at the same time. Only the senior lender can foreclose. I think the disclaimer actually means that same unit could have been foreclosed multiple times over the course of a year. As in: Bought by Buyer A and financed by lender A in 2005, foreclosed by lender A in early 2007. Sold in mid 2007 to Buyer B with a loan from Lender B. Foreclosed by Lender B in late 2007. What the Chronicle did was go through the foreclosure files and count up the totals. They were too lazy to go back and compare all the address to check for duplicates. bpe3
  8. bpe3

    Tremont Towers?

    Yes. Tremont built Hyde Park Crecent. And yes, Hyde Park Crecent was also plagued with complaints about shoddy construction, particularly with regard to water leaks. Come on Tremont. How hard is to build a building that doesn't leak like a sieve months after completion? The Lemon Lady who protested daily in front of Tremont Tower was a Hyde Park Crecent homeowner. bpe3
  9. Yes. That's exactly what I'm looking for. Now I just need to figure out what kind of railing system I need so my guests don't fall out the window after they've had a few drinks. bpe3
  10. You need to make one more change. The thread is now called "Highland Tower Not High Street", but the thread description still says, "Former car dealership on Westheimer" which is not where Highland Tower is going to be built. Highland Tower will be north of the former car dealership at the NEC of Bancroft at Bettis. bpe3
  11. YES!!!!!!!!!! Now we are getting somewhere. Those doors look awesome, Scharpe Guy. They all seem to all be flat though, which would require that I remove the existing stucco facade and install them flush with the brick facade. While that's certainly an option, it would really nice to find a similar system that can be intalled within the curve of the existing curved stucco facade. Then I could really open things up without substantially altering the look of the exterior. That would cetainly make my neighbors happy. bpe3
  12. Where did I say anything like that? I think you're in the wrong thread. This thread is about the townhouse trend in Houston. There's another thread about people making $80k a year and buying $300k homes. If you read it, you'll see that I clearly said you need to do one of two things to be able to afford a $300k home: 1. make a lot more than $80k 2. put down a large down payment. I agree with you 100% that leveraging one's self to the hilt to buy a home is a really bad idea. When I bought my home, I bought FAR less than I could afford. I put 20% down and paid off the rest of the loan over 12 months. The fact of the matter is that Houston home prices are a SCREAMING bargin when compared to many other large American cities. I realize that certain neighborhoods are still out of reach of many homebuyers. If you can't afford the house of your dreams in Houston, you should take solace in the fact that if you lived in many other cities your dream would be even farther away from reality. bpe3
  13. That second link is right on point, Judah. Here's a quote from one of the other links above about townhouse development in Seattle: You don't have to be an economist to figure out what would happen to real estate prices in Houston if it took FIVE YEARS to get approval to build townhouses, apartments, etc. Prices would be through the roof. Demand is demand. Houston has created 170,000 new jobs in the last two years alone. These people have to live somewhere. If you you don't add the supply, prices go up. In my option, one of the best things Houston (and the suburbs) has managed to do is allow the supply keep up with the demand. Houston's moderate real estate prices have become a magnet for talented people. I know of several college educated couples who decided to move to Houston specifically for the affordable real estate. I'm good friends with one couple that moved here from Chicago several years ago. Both were college educated people with decent careers. They wanted to get married, have kids, etc., but they looked around Chicago and didn't see how they'd ever be able to afford the lifestyle they desired. They didn't want to raise their family in a 1,000 SF condo and the didn't want to move out to BFE to buy a home. They both started looking for jobs in Houston and within six months they were here and gainfully employed. A year later they bought a home just west of the Galleria. A year after that they started a family. They looked objectively at options all across the country and chose Houston as the best combination of big city amenities and housing affordability. bpe3
  14. bpe3

    Tremont Towers?

    Wow. Just wow. The Chronicle is reporting that there were 74 foreclosures out of 76 units were foreclosed in 2007 alone. Perhaps HCAD hasn't kept up with all the ownership changes. That's a mind blowing figure. People really are voting with their feet. Chronicle forclosure data: http://www.chron.com/business/2007_foreclosures.html bpe3
  15. The song would be about 100x better if the singer just referred to Montrose as Montrose instead of the 'trose. I've lived in and around Montrose for a very long time and I've never heard anyone refer to it as the 'trose. bpe3
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