Blackstone Sells Off Major Asset
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Blackstone's Major Real Estate Liquidation
Blackstone announces major real estate asset liquidation sell-off. More, commercial properties going to foreclosure this time. this time it's in San Antonio. Willow Glen luxury home of the week and the 12 Bay area.
Year-to-date sales chart. Let's get moving here. Blackstone announces major asset liquidations as redemption requests for its REITs continue.
They're just saying, Hey, we're going to start selling off some of our real estate assets, commercial and residential, which is actually good.
Impact on First-Time Home Buyers and Investors
It means there will be a time for first-time home buyers to come back in and start playing the market, start getting in and becoming homeowners instead of renters, that's good.
They also see the writings on the wall for the commercial side because commercial real estate is taking a pounding right now. The supposition here is they're looking to raise more money for other asset purchases, like bigger builds for the future.
But right now is a good time for them to sell because right now we're at a peak in the industry. So what does that mean? There's going to be more supply. For the demand that's out there, which is just in time because we're expecting rates to go down in September. What does it mean for investors?
continue to invest in black stone. If that's something that you're doing, or if something that you want to do, I personally don't believe in what they're doing, so I won't buy into it. No judgment, but it is designed to deliver 12 percent equity interest every year. That's huge, right?
When you go through your finance classes in college, they tell us that 12 percent is that magic marker number that every seven years, your money doubles. So they're doing the right thing for their stake in stockholders. Is it necessarily a good thing for Mr. And Mrs. USA? No, because they take away properties, home buyers could be buying and they convert them into rentals and they're holding it because they either rent it out or they're just holding it vacant and letting it build up equity because the market is doing so right now, the market's going to start peaking and we talked about this last week.
Areas, not metropolitan areas, but areas around metropolitan areas that are starting to stink, outside of Austin, outside of Tampa, outside of St. Louis, outside of the metropolitan areas, you're going to see areas start to contract a lot faster because it just happens that way. As a matter of fact, we're going into our 12 Bay Area sales report and San Francisco being the top leader in list price to sales price ratio not necessarily in volume or anything, but they're coming back so What this means is if you're an investor, this is good news.
If you're a home buyer, this is potentially good news because it might make houses more affordable for you.
San Antonio Foreclosure and Market Trends
San Antonio has 600 units that they're putting on the auction block. They bought this and they're trying to sell it right now for twice what they bought it for. And it's not going to happen.
They're in foreclosure. They bought this house. Bought it for 70 million finance, 62 million. That means investors sunk in 8 million and hopefully they can sell this right now. They bought it when they bought it. It was 113, 114. They bought it with the expectation of raising it.
Brent's and a lot of those properties, a lot of those doors or units are section eight, which you can't increase. 118, 000 per unit. Now watch this. They're going to, they're for sale for 160. 000 per unit, which is a fool's purchase. Nobody would buy that. So then selling it 000, per unit.
So you're going to see a lot more of this happening. It's not just Texas. I know that I keep picking on Texas, but that's only because this guy keeps popping up in my TikTok, but it's all over it happened in San Francisco. It's happening all over the USA.
Economic Concerns and Recession Indicators
So, Mark, in my words, commercials could be one of the reasons why we see a major downtick in the economy.
It could be one of the houses of cards that we talk about. We talk about automotive and healthcare and credit cards and debt, and we're over a trillion dollars in debt. And now we're going to war with Iran because we just sent troops over there. There's a lot of stuff that's shaking up the world right now.
Who knows? We could be the trigger for it. It could be China. It could be Russia. It could be Europe somewhere in Europe. We just don't know
a lot of the news reports. I'm seeing these days are the economy has already started contracting. We're already in a recession. And on all my feeds, people say, Yeah. Are we in a recession? I, they're not announcing it and who am I to tell you? I think the recession is already here, but I'm a real estate guy, right?
And I look at all different industries, but I'm by no example to be looked at as the global economic expert here. I'm just telling you what I see. And trying to shove out this information so you can make an educated guess if you want to buy or sell a house. And I'm busy right now. So a lot of people are buying and selling houses.
let's go into this one.
Real Estate Buying Strategies
aBrace Avenue is on my radar. Again, it's on the market for 55 days. They just lowered the price down from 1. 5 million. to 1. 45. So a hundred thousand dollars off. I bet you can get this thing for a little bit less since it's still on the market. I would go in around Thursday and find out if they have any offers and give you a nice one.
Lowball offer and make it happen. These are the targets that we look at when I work with buyers. I like working with buyers who understand how to get good deals because That's how I earn my money. I want to make sure that I'm doing a good job.
You come to me and say, Hey Vito, I want to look at this one house. It's been on the market for a day. And you think it's really worth 2 million. my answer to that is yes, right now it's worth 2 million. There might be a buyer that's coming in and going to buy that for 2 million, maybe even 2. 1 or 2. 2, but we don't know if it's on the market for 30 days.
And it's still sitting there at 2 million. Then it's not worth 2 million. It's worth 1. 8, 1. 9. Then you can go in and ask for better terms. So you look at houses that have been on the market for 30, 60, 90 days. And then you have something that you can actually crunch your teeth into and take a good bite out of and get a good deal.
That's why I do the 40-day marker reports on Thursdays. Those are very important for first-time home buyers or people who don't have millions of dollars to fling at houses. So this overall is a good house. I don't think it's worth 1. 49, but we'll see. Maybe it'll go off the market tomorrow. We'll see.
A segment of this episode is brought to you by the Homebuyers Checklist. If you are buying a home and you're home shopping, download this checklist. You'll see that there's a bunch of things for you to look at for every home. You can just check it off saying it's good, fair, or poor condition, and it allows you to compare one house to another.
And when you look at five or six houses in one day, everything blurs together. And this chart was designed. By me to allow you to go through four or five, six houses and make those checkoffs and make notes.
Luxury Home of the Week
So you understand how to compare and contrast each house that you go to without making it blurry Bay area, luxury home of the week, 20 million.
If you have 20 million in your bank account, that's itching to be used. Let's go and take a look at this one. It's the reason why I picked this one is because it's right on the water. I think it's beautiful. It's right by Stinson Beach and it's. When you have something that's on the water like this.
This is a house that I would love to live in. I personally don't have 20 million just lying around, so it's not really a candidate for me, but it's a beautiful house. I like the look and feel. It's very modern. I'm not a big fan of the flat roof. I got rid of my flat roof for a reason they're prone to have issues.
But guys, this is the ultimate in living. And if you're a billionaire, you want a five bedroom, four and a half bath. That's 3, 200 square feet built in 2015. This is a custom house that you can really sink your teeth into. And it's gorgeous. And you can just fly your helicopter there, land and enjoy the weekend.
That segment is brought to you by the home inspection checklist. If you're thinking about selling your house. This is a way to let you go through every nook and cranny of your house and see if some cracks or repairs are needed before you bring in the inspector. By no means is this a replacement for your home inspection because you want to have a third-party unbiased professional come through and take a look at your house.
But if you've gone through it before and you fix maybe a plug or a switch or a key. Replace a washing machine that broke or a dishwasher that broke. This is a great way to go through it and create a list, a honey-do list. So there you go. Download it. It's a free promise. I won't bug you too much.
Bay Area Real Estate Report
YTD SALES 12 Bay Area Counties
So this is the 12 Bay area report and there's nothing major to report other than we're over 11 billion in Santa Clara County this year, we're still far below the line of volume, not a dollar sign volume.
As well as the number of sold houses. If you match this from last year, the point is we're still doing strong. Almost every house that goes up on the market gets sold unless it's overpriced. If it's overpriced, it's going to sit. So there you go. This last week, we put 180 homes on the market. Nothing compared to Alameda or Contra Costa.
But again, I keep telling you, if you want a really good buy, look at Napa 96 cents on the dollar versus 107 cents on the dollar. So if you're thinking about buying a house and you don't care where you live, Napa is a great place to make a great deal. The only problem is there's not a ton of new listings in Napa.
There are 30 and overall there have only been 467 sales this week. All right.
Final Thoughts and Viewer Engagement
Commercial. Automotive go look at commercial real estate and look at the automotive industry, dig deep into that, and see if we're in a recession or not. Tell me, come back here and comment whether or not you think I'm on the right heading, or if I'm full of crap, please. I would love to hear your input on this.
Then we talked about Willow Glen's Home of the Week and the Luxury Home of the Week, which is amazing. And the 12 Bay area. Sales report. I'm Vito with Abitano. Thanks for watching. We'll see you out there.
Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg
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