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clearfund
Participantps: to the main point of this post. Regardless of how nice the community is/will be. I suspect a rising tide of inventory forthcoming and another leg down in pricing above $1.25mm.
There is just a ton of inventory priced between $1.5mm – $3mm in comparable neighborhoods of Cielo/Crosby/Santaluz/Fairbanks Highlands/etc.
Participantps: to the main point of this post. Regardless of how nice the community is/will be. I suspect a rising tide of inventory forthcoming and another leg down in pricing above $1.25mm.
There is just a ton of inventory priced between $1.5mm – $3mm in comparable neighborhoods of Cielo/Crosby/Santaluz/Fairbanks Highlands/etc.
Participant“Like they say, no risk, no reward”
Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.
We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.
We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.
I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.
Participant“Like they say, no risk, no reward”
Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.
We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.
We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.
I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.
Participant“Like they say, no risk, no reward”
Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.
We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.
We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.
I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.
Participant“Like they say, no risk, no reward”
Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.
We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.
We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.
I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.
Participant“Like they say, no risk, no reward”
Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.
We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.
We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.
I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.
ParticipantTo a certain degree the costs/design requirements in Cielo/Crosby are more expensive to comply with than regular building. I believe that the Santaluz requirements are the most costly. However, that doesn’t mean they create the most value, just that their process is the most detailed and pretty similar to the trauma of getting a home approved/built in the RSF Covenant relative to the other gated golf communities.
The Bridges is a cakewalk to get design approved if you know their goals…more focused on just a pleasing look than technical mandates like santaluz…and we know The Bridges values remain pretty high.
As for the link to the SDGE substation/residence…enough said…
ParticipantTo a certain degree the costs/design requirements in Cielo/Crosby are more expensive to comply with than regular building. I believe that the Santaluz requirements are the most costly. However, that doesn’t mean they create the most value, just that their process is the most detailed and pretty similar to the trauma of getting a home approved/built in the RSF Covenant relative to the other gated golf communities.
The Bridges is a cakewalk to get design approved if you know their goals…more focused on just a pleasing look than technical mandates like santaluz…and we know The Bridges values remain pretty high.
As for the link to the SDGE substation/residence…enough said…
ParticipantTo a certain degree the costs/design requirements in Cielo/Crosby are more expensive to comply with than regular building. I believe that the Santaluz requirements are the most costly. However, that doesn’t mean they create the most value, just that their process is the most detailed and pretty similar to the trauma of getting a home approved/built in the RSF Covenant relative to the other gated golf communities.
The Bridges is a cakewalk to get design approved if you know their goals…more focused on just a pleasing look than technical mandates like santaluz…and we know The Bridges values remain pretty high.
As for the link to the SDGE substation/residence…enough said…
ParticipantTo a certain degree the costs/design requirements in Cielo/Crosby are more expensive to comply with than regular building. I believe that the Santaluz requirements are the most costly. However, that doesn’t mean they create the most value, just that their process is the most detailed and pretty similar to the trauma of getting a home approved/built in the RSF Covenant relative to the other gated golf communities.
The Bridges is a cakewalk to get design approved if you know their goals…more focused on just a pleasing look than technical mandates like santaluz…and we know The Bridges values remain pretty high.
As for the link to the SDGE substation/residence…enough said…
ParticipantTo a certain degree the costs/design requirements in Cielo/Crosby are more expensive to comply with than regular building. I believe that the Santaluz requirements are the most costly. However, that doesn’t mean they create the most value, just that their process is the most detailed and pretty similar to the trauma of getting a home approved/built in the RSF Covenant relative to the other gated golf communities.
The Bridges is a cakewalk to get design approved if you know their goals…more focused on just a pleasing look than technical mandates like santaluz…and we know The Bridges values remain pretty high.
As for the link to the SDGE substation/residence…enough said…
ParticipantFor the design review guidelines coupled with the demands of the resale buyer, you would be hard pressed to build a home less than $200/sf.
Example, all front doors/windows must be recessed 18″ and all side windows 12″. These types of items raise your cost as your essentially frame a house inside a house.
You cannot use vinyl windows (must be wood windows) and cannot use cheap “S” tile track roof. Must be a ‘redlands clay’ type roof (read expensive). Multiply this by 100 different items and up goes your budget.
At that price you would be cutting corners everywhere and will end up with a product which is vastly inferior to your competition. Trust me, I’ve seen it happen out there.
Right now you can buy below replacement value which is a great starting point.
ParticipantFor the design review guidelines coupled with the demands of the resale buyer, you would be hard pressed to build a home less than $200/sf.
Example, all front doors/windows must be recessed 18″ and all side windows 12″. These types of items raise your cost as your essentially frame a house inside a house.
You cannot use vinyl windows (must be wood windows) and cannot use cheap “S” tile track roof. Must be a ‘redlands clay’ type roof (read expensive). Multiply this by 100 different items and up goes your budget.
At that price you would be cutting corners everywhere and will end up with a product which is vastly inferior to your competition. Trust me, I’ve seen it happen out there.
Right now you can buy below replacement value which is a great starting point.
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