Commercial Property Reporting MAJOR LOSSES
Commercial Property Reporting MAJOR LOSSES
Introduction and Overview
Commercial property is posting major losses. We'll get into that as well as Willow Glen Home of the Week, Luxury Home of the Week, and 12 Bay Area County Report. Let's get moving here.
Commercial Real Estate Crisis
Commercial property real estate is in trouble. I told you this.
We're starting to see right now that it's not just the big enterprises, it's REITs and syndications and everything that are overbuying and Taking too much debt to service the accounts.
They're inexperienced REIT holders or REIT managers or syndication managers who are buying these properties two or three times the value of what should have been. And it's not paying for itself. So what they're doing is they're going back to the investors and saying, Hey we're in trouble. You owe us another 1, 000, 000 or we need X amount of money to service the debt on this.
I saw one last week in San Francisco. It was an apartment building commercial building an office building. It's similar numbers, right? It was worth like 300, 000, 000. Somebody picked it up for 16, 000, 000.
This one right here paid 600, 000. And $5 million in 2014, and they put millions of dollars in renovation and they just sold it for $185,000. Yeah. Commercial property is hurting right now. This one's in St. Louis 300. This one just sold for three and a half million dollars. It was sold for $205 million in 2006. Million plunges, 100 million loss. And guys, this isn't just office buildings. It's apartment buildings too. This could be one of the cards or one of the dominoes that set off the entire chain of the economy. Something to be aware of.
So you know what's going on in the market. Just be aware, right?
Impact on Residential Market
FREE HOME BUYER CHECKLIST HERE
Could this affect the residential market? Yeah. Because banks are affected. And when banks are affected, that means mortgages are affected. That means loan originations are affected. That makes it more difficult for home buyers to buy homes.
What happens when a market crashes is this all the investors, all the mom and pops come out, and all the institutional investors. Come out and they buy property off 60, 70, 80 percent on the dollar, which means that there's a lot more competition and people that are saying, Oh, I'll just wait until the market comes or crashes and I'll pick it up for 60 cents on the dollar.
Good luck because there are investors in there. The investors come out of the woodwork, they come out of the cracks and they start buying up all these properties. I have money stashed away, ready to pounce on a market crash. So right now there's not, there's still competition out there.
When the market crashes, people start picking stuff up. I don't have 200 million or three and a half million dollars to throw down a commercial building. I should start looking, but this type of stuff is going on wholesale all the time. REOs are out there that are real estate-owned or bank-owned properties.
Buying Opportunities and Strategies
Guys, if you're thinking about buying a house, Now's the time to do it. And I don't work with a lot of buyers. So it's one of those things that you have to be aware of. And I'm telling all my sellers this right now, the market might crash.
I keep saying that. And there's a bunch of crash pros that are out there saying that, but when the market does crash, you're going to get a better deal in commercial real estate. Period. It's just the way it is. You're not going to get the same deal that you think you're going to get in bank-owned properties.
So just be aware. There are things out there that we do in a strategic way that helps you get into a good deal. Might not be the perfect house, but if you're a first-time home buyer, now's the time to buy right now because when the market comes out and crashes, it's going to be 10 times more difficult for you to buy a house.
Speaking of which shameless push here. If you're thinking about buying a house, download this checklist, I won't call you and bug you or harass you. It's a checklist that walks you through the entire process. But when you're looking at four or five, six houses at a time, let's say you go open house shopping.
This allows you to compare and contrast each house. And when you go to four or five, six houses, it's hard to remember which kitchen went to which house. And this one lets you do a checklist and tell you, yes, I like this one. This is a brand new kitchen, that kind of thing. And then you can compare it a little bit better.
So download that today. It's easy. It's free. There you go.
Willow Glen Home of the Week
Willow Glen house of the week is Merle Ave, 2 million, three and one half bathrooms, 1, 700 square feet in 1936. See if I can open this up so you can see bigger pictures. That's a little courtyard. Everything I'm going to get through this real quick guys.
And also these links are in my blog. If you want to take a look at the blog, the link is down below in all the descriptions of these videos. So you can access the blog really easily and take a deeper dive into these. So this one's nicely updated. I'd buy that house.
Luxury Home of the Week
It's a really nice house, the luxury home of the week.
And the reason why I pulled up Belvedere, this one right here, these are not my listings, by the way. The reason why I picked this up is that I went sailing this weekend and we Stopped here and sailed around I thought I'd share this with some of the people that I went sailing with because it's always fun to see this, especially when you sail by it in a sailing boat and it's fun.
So yeah, sailing was pretty cool. I'm not an avid sailor. I wouldn't say that I'm a proficient sailor. I run around, pull all the ropes for the skipper and he tells me what he wants to have done and I do it. That's the kind of sailing.
I like to do the other part of the people like to sit around and drink and eat and have fun. And that is absolutely fantastic. I just enjoy the running around the part for me. It's more tack or skill-building for me. But this is, look at this house. This is beautiful. And the best part about it is it's a price decrease.
What went down a whole 500, 000, five-bedroom, five and three half baths, 5, 300 square feet built in 1968, completely updated. This is a beautiful house. Million dollar view. It only costs you 25 million to buy. Remember what we talk about with market makers and attracting the market, even the big houses, even the big multimillion-dollar houses, sometimes they can't be market makers.
So just take that with a grain of salt. Understand that you have to attract the buyer because the buyer, even though it's a seller's market, the buyer is going to decide whether they want your house or not. This house right now, technically, it should have sold. Something's Going on, you just don't know.
You take a look at all the other 36 multimillion-dollar houses and they're sitting there. They're meant for billionaires to write a check and some people are just sitting back waiting for the market to sit around and see what happens.
Home Inspection CHECKLIST HERE
So yeah, lots of opportunities out there. Even here in Carmel by the sea and some two-mile drive. So if you do want to go look at any of these houses, let me know. Happy to help you out. When you go to sell your house, or even if you're going through and doing your own inspection of a house, you're in contract with this home inspection checklist allows you to walk through every nook and cranny from the appliances to the heating, venting, and air conditioning system to.
Each room to the roof to the pool kind of walks you through everything so you could do a checklist to see what it looks like and make you put eyeballs on it and you could touch it and make sure everything works. So you know what you're getting into. And by the way, this by no means is a replacement for professional home inspection.
I always recommend that you get one because they know what to look for. They know how to Tell you what's wrong with the house and no house is ever perfect. No house is ever perfectly plum square or level. Just remember that. Okay.
YTD SALES 12 Bay Area Counties
12 Bay Area County Report
12 Bay area County report. Nothing super crazy to worry about. In sales in Santa Clara County, I want to point out 600 million for Napa. You can still get a great deal. 98 cents on the dollar in Napa Monterey collapsed this week, 96 cents on the dollar. Santa Clara is 98 cents on the dollar. It went down huge this last week. San Mateo is 107 which actually went up.
And San Francisco went down, but San Francisco's been piping it at 110 cents on the dollar for a very long time. So just keep in mind that things are toppy turvy like San Benito, even though we're only at $200 million in sales volume. And only 376 listings.
It's up to 110, which is huge. It's a huge jump. So if you look at the averages, you'd see that it's crazy. Best Buy in my opinion is still Napa. If you're looking to buy and you're looking for a second home, Napa is the second home area of The Bay area. So think about that. And then Sonoma looks like everything's pretty much nominal.
Santa Clara County, again, had 177 homes in the contract this last week, but we saw a major depression in pricing. So what's going on? Something to think about. All right.
Conclusion and Final Thoughts
That's it. I'm at 13 minutes. Happy Monday. Hope you had a great weekend. I'm Vito with Abitano. 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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