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sdcellar
ParticipantI’m no insider if that’s what I’ve got you guys thinking. I’ve just been following Del Sur for a while and these are just things I’ve picked up when talking to folks who work there.
Several times I’ve heard (or overheard) references to lots that haven’t been picked up, or were going to be picked up by such and such, but the particular builder backed out. I’ve heard this at the Ranch House and at specific builder’s offices. It’s kind of interesting what they’ll talk about thinking no one’s listening or understands what they’re saying.
I first learned the term “cans” at a model home. That’s short for cancelations and I first overheard it while waiting for the salesperson to get off the phone (most likely with someone else within their company). Needless to say, the “cans” were surprisingly high compared to “closed”.
Don’t get me wrong. I’m not even trying to eavesdrop. It’s just like with cell phones where you can’t help but hear what people are yacking about sometimes. Other times, they’ve said things directly to me, which kind of blows my mind sometimes.
Also, I think ocrenter of BMIT fame might have more detailed insight into some of the Del Sur land option situation.
On the other question, Fred Maas is the CEO of Black Mountain Ranch LLC, the master developer of Del Sur. He’s quoted on the topic recently.
ParticipantI’m no insider if that’s what I’ve got you guys thinking. I’ve just been following Del Sur for a while and these are just things I’ve picked up when talking to folks who work there.
Several times I’ve heard (or overheard) references to lots that haven’t been picked up, or were going to be picked up by such and such, but the particular builder backed out. I’ve heard this at the Ranch House and at specific builder’s offices. It’s kind of interesting what they’ll talk about thinking no one’s listening or understands what they’re saying.
I first learned the term “cans” at a model home. That’s short for cancelations and I first overheard it while waiting for the salesperson to get off the phone (most likely with someone else within their company). Needless to say, the “cans” were surprisingly high compared to “closed”.
Don’t get me wrong. I’m not even trying to eavesdrop. It’s just like with cell phones where you can’t help but hear what people are yacking about sometimes. Other times, they’ve said things directly to me, which kind of blows my mind sometimes.
Also, I think ocrenter of BMIT fame might have more detailed insight into some of the Del Sur land option situation.
On the other question, Fred Maas is the CEO of Black Mountain Ranch LLC, the master developer of Del Sur. He’s quoted on the topic recently.
ParticipantSo, it does indeed sound like you’re buying it for the lot. Good luck, I hope it turns out to be everything you wish for.
ParticipantSo, it does indeed sound like you’re buying it for the lot. Good luck, I hope it turns out to be everything you wish for.
ParticipantI think they’re kinda/sorta selling what they’ve got. They just keep lowering prices until things sell. Sounds good unless you’re the guy who bought in October, or December, or last week…
They’re also trying to finish building everything in the already planned phases. For a while, they were trying to control inventory and maintain prices, but now I think it’s get it built and sold before they need to reduce prices further.
It also sounds like it’s true that Fred Maas is having a hard time getting anyone to pay for any more dirt. I’ve heard several times that builders have let their land options go and nobody else is picking them up.
Sounds like it’s going to look a lot like it does right now for some time to come.
ParticipantI think they’re kinda/sorta selling what they’ve got. They just keep lowering prices until things sell. Sounds good unless you’re the guy who bought in October, or December, or last week…
They’re also trying to finish building everything in the already planned phases. For a while, they were trying to control inventory and maintain prices, but now I think it’s get it built and sold before they need to reduce prices further.
It also sounds like it’s true that Fred Maas is having a hard time getting anyone to pay for any more dirt. I’ve heard several times that builders have let their land options go and nobody else is picking them up.
Sounds like it’s going to look a lot like it does right now for some time to come.
ParticipantAlex– How about some more details (assuming you’re comfortable with such)?
It definitely sounds like you’d be stretching yourself to get into a place and I’m kinda curious why anyone would do that right now (including you).
Perhaps you have great income, but nothing much for a down payment? I’d still go with what Rustico said: save, save, save…
On the mechanics, yes, you can definitely go 80/10/10 (or 80/8.2/11.8 or whatever flavor you like [and a lender approves]).
ParticipantAlex– How about some more details (assuming you’re comfortable with such)?
It definitely sounds like you’d be stretching yourself to get into a place and I’m kinda curious why anyone would do that right now (including you).
Perhaps you have great income, but nothing much for a down payment? I’d still go with what Rustico said: save, save, save…
On the mechanics, yes, you can definitely go 80/10/10 (or 80/8.2/11.8 or whatever flavor you like [and a lender approves]).
ParticipantDo you mean same characteristics as in they’re both loans? Are you saying there are a lot of 2% HELOCs floating around out there? (please don’t answer that, it’s rhetorical)
You keep tweaking your examples until they sound pretty good, so sure if I could borrow money for about 2% and count on a 10% return elsewhere, I’d do it.
But to take it back to what you originally stated, no, I don’t think it’s a good idea to borrow money to earn marginal interest. So yeah, I guess you understand me.
What about this poor guy and his 100% loan, do you think he should do that? (and please, don’t tell me about 2003…)
ParticipantDo you mean same characteristics as in they’re both loans? Are you saying there are a lot of 2% HELOCs floating around out there? (please don’t answer that, it’s rhetorical)
You keep tweaking your examples until they sound pretty good, so sure if I could borrow money for about 2% and count on a 10% return elsewhere, I’d do it.
But to take it back to what you originally stated, no, I don’t think it’s a good idea to borrow money to earn marginal interest. So yeah, I guess you understand me.
What about this poor guy and his 100% loan, do you think he should do that? (and please, don’t tell me about 2003…)
May 18, 2007 at 10:47 PM in reply to: 4S ranch Silhouette starts to sell model homes! will it stop selling future houses?? #53778ParticipantSince they mentioned Lease Back opportunity, I’d say it’s exactly that–one can purchase a model, but you need to be willing to lease it back to John Laing until they’re finished with the project.
I don’t know much about it, but I know of one other example where it was actually a pretty good deal in that the developer leased it back at an above market rate.
Not sure how commonly this is done, but I can see where they’d do it in a declining market–they’d get more for it today than they would 2 years from now.
May 18, 2007 at 10:47 PM in reply to: 4S ranch Silhouette starts to sell model homes! will it stop selling future houses?? #53789ParticipantSince they mentioned Lease Back opportunity, I’d say it’s exactly that–one can purchase a model, but you need to be willing to lease it back to John Laing until they’re finished with the project.
I don’t know much about it, but I know of one other example where it was actually a pretty good deal in that the developer leased it back at an above market rate.
Not sure how commonly this is done, but I can see where they’d do it in a declining market–they’d get more for it today than they would 2 years from now.
Participantcitydweller– I happened to receive my free $10 starbucks card today for updating my contact information at dell.com, so between you and me, we’re seeing a pretty good rate of return in the beverage department!
raybyrnes– Somehow I must have missed the HELOC in your example. I ask for an apple and you give me an orange? And man, when did they make student loans so cheap? Who the hell is paying for that? Wait, that just might be me (among others). Well, color me stoked that you’re able to make money off the benevolence. Probably just envy talking now…
Participantcitydweller– I happened to receive my free $10 starbucks card today for updating my contact information at dell.com, so between you and me, we’re seeing a pretty good rate of return in the beverage department!
raybyrnes– Somehow I must have missed the HELOC in your example. I ask for an apple and you give me an orange? And man, when did they make student loans so cheap? Who the hell is paying for that? Wait, that just might be me (among others). Well, color me stoked that you’re able to make money off the benevolence. Probably just envy talking now…
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