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February 20, 2009

Open House Picks: Six Months Later

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Comment: As previously stated, St. James price is mind-boggling.
Open House Picks 8/8/08 [Brownstoner]
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Posted by Brownstoner at 12:38 PM | Comments (24)
Categories: Open Houses, Six Months Later

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Oh no not the face!

Jumbo Loan Defaults Rise at Fast Pace as Rich Suffer (Update2)

http://www.bloomberg.com/apps/news?pid=20601087&sid=ab4hyMC6aJf0&refer=home

eb. 20 (Bloomberg) -- Luxury homeowners are falling behind on mortgage payments at the fastest pace in more than 15 years, a sign the U.S. financial crisis that began with the poorest Americans has reached the wealthiest

Well well lookie here Jumbo's are biting the big one and guess what retards? You need a Jumbo to sell your overpriced POS...

Buh Bye Retards. Nice knowing ya..

The What

Someday this war is gonna end..

Posted by: Return of The What at February 20, 2009 12:48 PM

You forgot to include the portion of the article where it talks about the kinds of buyers who are in trouble...

"Raymond Young bought his lakeside home in Miami four years ago for $2 million cash and in 2006 took out a $1.4 million jumbo mortgage to pay for a real estate venture in Texas. Now, with home prices in his area down 40 percent from their 2006 peak, according to the S&P/Case-Shiller Home Price Index, Young needs to refinance because the Texas investment isn’t paying off and his income has dried up. He can’t find a bank to help."

Posted by: 11217 at February 20, 2009 12:52 PM

Never borrow against your primary residence for a business venture.

Posted by: daveinbedstuy at February 20, 2009 12:54 PM

easy for you to say that, Richguydave

Posted by: the chicken at February 20, 2009 12:59 PM

DIBS - that's how most small businesses get started. borrowing from their primary residence. most banks don't give business loans when you are just starting out with no experience. i know several businesses that got started this way. you do what you have to do....

Posted by: bkny at February 20, 2009 1:03 PM

I'll join the chorus on this Dave. I don't think your statement reflects an understanding of the choices faced by many small business owners.

I would, however, agree with "never borrow against your primary residence to speculate in some shitty Texas real estate venture."

Posted by: lechacal at February 20, 2009 1:09 PM

bkny...I know it is, you're right. Prior to this mortgage mess though it was one of the top reasons why people default on their mortgage and HELOC.

I think if you're single its OK to take the risk...if there's a wife and kids, the risk of failure is so high that it's a bad idea to put the family at risk. Just my 2 cents on that.

Posted by: daveinbedstuy at February 20, 2009 1:11 PM

I thought the buying land out west scams finished in 1920?

Posted by: dittoburg at February 20, 2009 1:13 PM

I was looking for the statistics to back up my viewpoint and this is what I found with a cursory google...

"Even so, most business experts conform to a theory of "thirds": Of all the new business startups, 1/3 eventually turn a profit, 1/3 break even, and 1/3 never leave a negative earnings scenario. According to a study by the U.S. Small Business Association, only 2/3 of all small business startups survive the first two years and less than half make it to four years."

That last sentence is the basis for my argument. And, I think the numbers for food/restaurant are even higher.

Posted by: daveinbedstuy at February 20, 2009 1:15 PM

And, I think a HELOC is counted among the mortgage numbers even if money has not been drawn down on it. I have a HELOC that I never drew any money from but it does show up on Property Shark as a mortgage amount.

Posted by: daveinbedstuy at February 20, 2009 1:29 PM

DIBS - you could use that un-used HELOC to start a business.

Posted by: dittoburg at February 20, 2009 1:31 PM

Not one of these posts is about OH 6 months later. ADD Theatre!!

Posted by: Jebby at February 20, 2009 1:31 PM

ditto....that's exactly what I was NOT going to do when I pulled the plug on Butternut Market.

Posted by: daveinbedstuy at February 20, 2009 1:43 PM

As someone who owns a business, let me perhaps re-phrase what DIBS says... your primary residence should be the LAST thing you borrow against for a business venture.

Posted by: denton at February 20, 2009 3:21 PM

Why can't anyone address the substance of this thread? A major report today finds that JUMBOs are failing... fast. Of course, the most pertinent point is some guy in Texas who defaulted after borrowing for his business??? Guess what, those defaults are happening in Brownstone Brooklyn. Our rich Brooklyn neighbors are losing their jobs, their bonuses, their prospects and defaulting. The numbers are bad and starting to track as severance dries up, taxes go up, and stock market gains evaporate. Enough of these inane ponderings about mixing small business investment/real estate. Totally misses the point of the article.

Posted by: HellsBelles at February 20, 2009 3:28 PM

> "Totally misses the point of the article. "

The article totally misses the point of this thread, no?

Posted by: SnarkSlope at February 20, 2009 3:44 PM

"Oh no not the face!"

Oh yes, the gas face. Obama's $75B undercover save-the-bank plan gets it.

"DIBS - you could use that un-used HELOC to start a business."

No, that's for hedge fund redemptions.

***Bid half off peak comps***

Posted by: Brownstones Half Off at February 20, 2009 3:45 PM

"Comment: As previously stated, St. James price is mind-boggling."

Not as mind-boggling as it will be to them when their future new neighbors buy for half that amount or less.

***Bid half off peak comps***

Posted by: Brownstones Half Off at February 20, 2009 4:00 PM

BHO--why not be honest about your goals here. Your masturbatory wishing for market collapse is tied to your own desire to buy a house. I hope everyone keeps this in mind when reading your malicious web-droppings.

Posted by: wasder at February 20, 2009 4:38 PM

Where can I find this fabulous Crowns Heights listing for a mere $499,000? The old link doesn't work any more.

Posted by: mopar at February 20, 2009 5:48 PM

Oh, I found it. They want all cash and the second-story extension looks like it's on the verge of collapse. Close to the subway though. Yay.

Posted by: mopar at February 20, 2009 6:03 PM

"BHO--why not be honest about your goals here."

My masturbatory wishing for market collapse is tied to my own desire to buy a house.

My masturbatory wishing for market collapse is tied to my own desire to buy a house.

My masturbatory wishing for market collapse is tied to my own desire to buy a house.

...

Now you be honest. Repeat after me, MY MASTURBATORY WISHING FOR A LONG HAUL REBOUND IS TIED TO MY OWN DESIRE TO SEE OXYGEN (EQUITY) AGAIN.

Who doesn't have an agenda?

***Bid half off peak comps***

Posted by: Brownstones Half Off at February 21, 2009 8:34 AM

I have that agenda for sure. My totally non-masturbatory wishing for a long haul rebound is tied to my own desire to see equity someday. I have no problem saying that. I just don't insult other people with it. I am not two faced and pretending to be something I am not. I know who i am. How many other ways can I say it?

Posted by: wasder at February 21, 2009 1:25 PM

Dave, do you have any experience as a small business owner? I would guess that the majority of the true "small" business owners either borrow against their home or retirement plan.

Posted by: Iknow at February 22, 2009 11:50 AM

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