Comments on: On Top Of The World At The St. Regis San Francisco http://thefrontsteps.com/2008/11/12/on-top-of-the-world-at-the-st-regis-san-francisco/ Real Estate, Insight, Statistics, Gossip, & News...With a Twist and Some Flavor Thu, 09 Feb 2012 07:18:36 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: fluj http://thefrontsteps.com/2008/11/12/on-top-of-the-world-at-the-st-regis-san-francisco/comment-page-1/#comment-6654 fluj Thu, 13 Nov 2008 00:20:17 +0000 http://thefrontsteps.com/?p=3043#comment-6654 TICs were always more expensive, and always portfolio loans. I said, "I'm told," as it was a Sterling Bank employee who told me about them being offered. Last, I think I was responding to someone saying that TIC loans were going to go away all together? TICs were always more expensive, and always portfolio loans. I said, “I’m told,” as it was a Sterling Bank employee who told me about them being offered. Last, I think I was responding to someone saying that TIC loans were going to go away all together?

]]> By: Noe Guy http://thefrontsteps.com/2008/11/12/on-top-of-the-world-at-the-st-regis-san-francisco/comment-page-1/#comment-6653 Noe Guy Wed, 12 Nov 2008 23:40:22 +0000 http://thefrontsteps.com/?p=3043#comment-6653 One other gem quote: <i>In September, TICs made up just 7% of San Francisco properties sold, down from 15% a year earlier. Their average price also has declined to $573,429 now from $659,945 a year ago, according to SFResidence. That's by far the worst percentage decline for any category of residential real estate in the city.</i> One other gem quote: In September, TICs made up just 7% of San Francisco properties sold, down from 15% a year earlier. Their average price also has declined to $573,429 now from $659,945 a year ago, according to SFResidence. That’s by far the worst percentage decline for any category of residential real estate in the city.

]]> By: Noe Guy http://thefrontsteps.com/2008/11/12/on-top-of-the-world-at-the-st-regis-san-francisco/comment-page-1/#comment-6652 Noe Guy Wed, 12 Nov 2008 23:38:36 +0000 http://thefrontsteps.com/?p=3043#comment-6652 This is so way off topic, that I sincerely apologize in advance, but we had a thread last week regarding TICs and whether or not they were more risky. Fluj said that banks like Sterling were doing quite well with fractional loans, so I wanted to point out an article in today's WSJ: <i>Sterling Bank & Trust FSB recently raised its rate for TIC loans to 7.75% -- a loan for a similarly priced condo would require only 6% to 6.25% interest -- and now requires a down payment of at least 20% of the purchase price. Other banks are now requiring 30% down. In the past, lenders required buyers to put 10% down. Residential TIC loans "are definitely more risky," says Richard Yurich, a loan officer at Sterling Bank. "Once we make the loan it's ours; nobody wants to buy them." His bank raised rates and requires more money down to protect itself from a bad investment, he says. There is another catch: There are no fixed-rate loans for TICs, meaning that buyers are forced to accept new terms after three to five years. This wasn't a holdup when property values were increasing and mortgage rates were trending down, says Glenn Rodriguez, a mortgage broker. "That's where we've lost a lot of the buyers over the last couple of months," he says. "People are worried."</i> Just sayin'. This is so way off topic, that I sincerely apologize in advance, but we had a thread last week regarding TICs and whether or not they were more risky. Fluj said that banks like Sterling were doing quite well with fractional loans, so I wanted to point out an article in today’s WSJ:

Sterling Bank & Trust FSB recently raised its rate for TIC loans to 7.75% — a loan for a similarly priced condo would require only 6% to 6.25% interest — and now requires a down payment of at least 20% of the purchase price. Other banks are now requiring 30% down. In the past, lenders required buyers to put 10% down.

Residential TIC loans “are definitely more risky,” says Richard Yurich, a loan officer at Sterling Bank. “Once we make the loan it’s ours; nobody wants to buy them.” His bank raised rates and requires more money down to protect itself from a bad investment, he says.

There is another catch: There are no fixed-rate loans for TICs, meaning that buyers are forced to accept new terms after three to five years. This wasn’t a holdup when property values were increasing and mortgage rates were trending down, says Glenn Rodriguez, a mortgage broker. “That’s where we’ve lost a lot of the buyers over the last couple of months,” he says. “People are worried.”

Just sayin’.

]]> By: Sophie http://thefrontsteps.com/2008/11/12/on-top-of-the-world-at-the-st-regis-san-francisco/comment-page-1/#comment-6646 Sophie Wed, 12 Nov 2008 21:19:26 +0000 http://thefrontsteps.com/?p=3043#comment-6646 Just for fun, a 20% downpayment is $14,000,000 a jumbo loan at 7.5% (today's rate) gives $391,560 in monthly payments so basically, you have to choke up about $12,900 (mortgage) + $2,400 (property taxes) DAILY! + a twenty each time a valet parks one of our cars. Assume you pay cash, it's still $6,400 (amt over 30years) + $2,400 (taxes) daily. How much would such a place rent in daily, weekly or monthly fee? more than $8,800 a day? $61,000 a week? $240,000 a month? if you need help paying for the water to flush those 11 toilets, you can always recycle your 500 gallons bathrub water with a [[<a href="http://thefrontsteps.com/2008/11/12/down-the-drain-and-into-the-toilet/d" rel="nofollow">link to previous post</a>]] pump. (I guess this is the type of properties made for the Rich Ones [in McCain definition of the term] ) Just for fun, a 20% downpayment is $14,000,000
a jumbo loan at 7.5% (today’s rate) gives $391,560 in monthly payments

so basically, you have to choke up about $12,900 (mortgage) + $2,400 (property taxes) DAILY! + a twenty each time a valet parks one of our cars.

Assume you pay cash, it’s still $6,400 (amt over 30years) + $2,400 (taxes) daily. How much would such a place rent in daily, weekly or monthly fee?
more than $8,800 a day? $61,000 a week? $240,000 a month?

if you need help paying for the water to flush those 11 toilets, you can always recycle your 500 gallons bathrub water with a [[link to previous post]] pump.

(I guess this is the type of properties made for the Rich Ones [in McCain definition of the term] )

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